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Renewables to Account for Over a Quarter of Global Electricity Generation by the End of this Decade (International Energy Agency)

Report Predicts 16 GW Geothermal by 2020

The expansion of renewable energy will slow over the next five years unless policy uncertainty is diminished, the International Energy Agency (IEA) said today in its third annual Medium-Term Renewable Energy Market Report.

According to the report, power generation from renewable sources such as wind, solar, hydro and geothermal grew strongly in 2013, reaching almost 22% of global generation, and was on par with electricity from gas, whose generation remained relatively stable. Global renewable generation is seen rising by 45% and making up nearly 26% of global electricity generation by 2020. Yet annual growth in new renewable power is seen slowing and stabilizing after 2014, putting renewables at risk of falling short of the absolute generation levels needed to meet global climate change objectives.

For the first time, the annual report provides a renewable power investment outlook. Through 2020, investment in new renewable power capacity is seen averaging over USD 230 billion annually. That is lower than the around USD 250 billion invested in 2013. The decline is due to expectations that both unit investment costs for some technologies will fall and that global capacity growth will slow. With decreasing costs, competitive opportunities are expanding for some renewables under some country-specific conditions and policy frameworks.

To download the executive summary of Medium-Term Renewable Energy Market Report, please click here.