Covid-19 negatively affects but does not stop the expansion of RES in the global energy system, as IEA points out in a new report where it updates its forecasts for the future.
Specifically, the IEA expects the pandemic to lead the new RES facilities to decline this year for the first time in 20 years, but their growth is expected to continue from 2021. The organization estimates that the fall in new power this year will reach 13 % on an annual basis, but again there will be a 6% increase in their installed capacity.
In 2021 it is estimated that there will be a strong recovery, as projects that were delayed this year will be implemented resulting in a growth rate corresponding to 2019. Combined, growth in the years 2020 and 2021 is expected to be 10% lower compared to its previous forecast. IEA.
For this year, photovoltaics and wind will account for 86% of the new power with a drop of 18% and 12% respectively on an annual basis. At the same time, it is emphasized that the impact of the pandemic on other technologies, such as offshore wind farms and geothermal energy, remains limited. The same does not apply to biofuels, where the market is projected to shrink by 13% this year.
Finally, the IEA notes that the pandemic exacerbates concerns in some markets about funding, regulatory frameworks and networks. However, he believes that governments have the opportunity to reverse the situation by making green investment part of the economy’s recovery plans.
