Global renewable energy installation will reach record levels in 2020.
The coronavirus pandemic has caused declines in the fossil fuel sectors, with the International Energy Agency (IEA) reporting that nearly 90% of new energy generation in 2020 will be renewable. The remaining 10% will come from gas and coal. Coal has been the largest global power source for the past fifty years, but by 2025, green electricity is set to overtake it.
Part of the story behind green energy’s success is the imperative to address climate change, which has made renewables very attractive to investors, with shares outperforming most major stock market indices. For instance, the value of shares in solar energy companies has increased by more than twice since December 2019.
IEA executive director Fatih Birol says, “Renewable power is defying the difficulties caused by the pandemic, showing robust growth while others fuels struggle.”
The IEA expects that US president-elect Joe Biden’s policies will further accelerate renewable energy installations in the US.