Renewable power capacity additions continued to reach new record highs in 2016, driven by cost reductions and policies aimed at enhancing energy security and sustainability and improving air quality. According to the International Energy Agency (IEA) Medium-Term Renewable Energy Market Report 2016, onshore wind and solar PV are expected to drive the majority of renewable capacity growth over the next five years. They are also the only two technologies on track to reach 2DS targets.
Other renewable technologies are not on track to reach their 2DS targets. For geothermal, pre-development risks remain high overall, and drilling costs have been increasing over the last decade.
Some policies could also address technology-specific challenges. These policies could include improved policies tackling pre development risks for geothermal energy.