Green electricity is doing well. Unlike other energy sources, especially oil, gas and coal, which are on the decline due to the Covid-19 epidemic, renewable energies are experiencing strong growth. Solar, wind, hydro and other green sources of electricity are expected to represent this year “Nearly 90% of the increase in total global energy capacity”, estimates the International Energy Agency (IEA).
China and the United States are responsible for most of these renewable energy capacity additions, which represent around 200 gigawatts in 2020, points out the IEA’s “Renewables 2020” report. In these two countries, operators have sought to take advantage of incentives that are limited in time.
Next year, the growth of green energies should accelerate even more and reach 10%, a level not seen since 2015. The European Union, and especially India, where projects delayed by the pandemic will be finalized, are largely responsible of this increase in capacity.
” The resilience and positive outlook of the sector are clearly reflected in the sustained appetite of investors», Underlines Fatih Birol, executive director of the IEA. And the impact on the stock markets is clear. In 2020, shares of renewable energy equipment manufacturers and project developers outperformed most major stock indexes and the entire energy sector.
In 2020, despite a 5% drop in global energy demand, electricity from renewable technologies is expected to increase by 7% globally. “By 2025, these energies are expected to become the world’s leading source of electricity generation, ending five decades of coal production as the main supplier “, Anticipates Fatih Birol, executive director of the IEA. “By this time, renewable energies could supply a third of the world’s electricity. And their total capacity will be twice the total capacity of China today.», He adds.
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