Global recessions, wars, and pandemics have a way of driving down energy demand. Last year, the International Energy Agency (IEA) said the collapse in global primary energy demand brought on by COVID-19 was the biggest drop since the end of World War II, itself the biggest drop since the influenza pandemic after World War I. IEA also reported that renewable power capacity grew at its fastest pace this century in 2020, raising its growth forecast for wind and solar power for this year and next.According to the Paris-based energy watchdog, renewables were the only energy source for which demand increased last year. The addition to the world’s renewable electricity capacity last year was 45% more than in the prior year and the biggest jump since 1999, as wind and solar farms sprang up across the world’s major economies. To learn more, read “How Wind and Solar Power Got the Best of the Pandemic AND Wind, Solar Power Made Strong Gains in 2020, IEA Says.” Reading these articles may require a subscription from the news outlets.
- Renewable energy installations not only increased during the pandemic, they exceeded even the most bullish of expectations, with wind installations increasing 90% and solar increasing 23%.
- IEA estimates that in 2022, renewables will account for 90% of new power capacity expansion globally.
- “Wind and solar power are giving us more reasons to be optimistic about our climate goals as they break record after record,” said IEA Executive Director Fatih Birol, adding that greater use of lower-carbon electricity was needed for the world to achieve its carbon-reduction goals.
- The European Union plans to spend $1 trillion to reach its goal of net carbon neutrality by 2050.
Path to 100% Perspective:
U.S. renewable energy adoption continues to rise, in 2019, renewable energy sources accounted for 17.5% of total utility-scale electricity generation, with renewable energy generation reaching 720 TWh. More than 70% of energy stimulus funding is currently allocated to legacy fossil fuels, compared to less than 30% to clean energy. However, reallocating $72 billion in energy stimulus funding could achieve:
- 107 GW of new renewable energy capacity
- 6.5 % rise in share of renewable electricity generation (from 17.5% to 24% renewable electricity).
- 544,000 new jobs in renewable energy, 175% more jobs than if the same stimulus was used to revive the legacy energy sector.