As per the International Energy Agency (IEA), in 2020, renewable energy sources were the only ones in high demand despite the pandemic, whereas consumption of other fuels declined.
In 2020, annual renewable capacity additions increased by 45% to almost 280 GW, the highest year-on-year increase since 1999. In 2021 and 2022, high capacity was exceptionally added to become the “new normal”, with renewables accounting for 90% of new power capacity expansion globally.
According to the International Energy Agency (IEA), Solar PV development continued to break records, with annual additions reaching 162 GW by 2022. It is almost 50% higher than the pre-pandemic level of 2019. In 2020, Global wind capacity additions increased by more than 90% to reach 114 GW.
The pace of the annual market growth slows in 2021 and 2022, it is still 50% higher than the 2017-2019 average. As per IEA reports, the annual growth in China’s renewables market decelerates following the exceptional expansion resulting from developers rushing to complete projects before subsidy phaseouts. Whereas, the rest of the world compensates for China’s slowdown to maintain the pace of renewable expansion.
Europe’s capacity growth accelerates for further policy support and results in a booming corporate PPA market as PV costs continue to decline. In the United States, the updated forecast is more optimistic because of federal tax credit extensions.
In 2020, according to the International Energy Agency (IEA), annual renewable capacity additions increased by 45% to almost 280 GW, the highest year-on-year increase since 1999.
The world economic forum reports that renewable energy is capturing a larger market share but is still a long way behind fossil fuels. In 2021, people and businesses around the world uses more power than in the year before the pandemic, as lockdowns ended and energy demand bounced back.
The key points in the renewable energy market affected due to COVID-19 pandemic:-
- Due to the pandemic supply chain challenges, construction delays, and record-level raw material and commodity prices, renewable capacity increased by 6% in 2021 and broke several records almost reaching 295 GW.
- During the pandemic, the country lockdown led to the global energy demand significantly dropping to levels not seen in almost 70 years. Due to this, a shift towards renewable seems to be more than just a temporary short-term trend.
- In the post-pandemic future, the IEA forecast predicts that renewable capacity additions will achieve double-digit growth.
- More renewable incentives are created by Governments to mitigate any economic impacts of future pandemics.