IEA predicts renewables to dominate electricity generation by 2025


IEA predicts renewables to dominate electricity generation by 2025


Global renewable energy capacity will soar by around 75% in the next five years, according to the International Energy Agency (IEA) on Tuesday, citing energy security concerns as a key reason.

Energy security worries raised by Russia's invasion of Ukraine have pushed countries to renewables such as solar and wind to cut reliance on imported fossil fuels.

According to the forecast, renewables will take up more than 90% of global electricity sources for the next five years, overtaking coal to become the world’s largest source of electricity by early 2025.

The IEA expects worldwide capacity to grow by around 2,400 GW to 5,640 GW, equivalent to the entire power capacity currently in China.

That growth is 30% higher than the growth forecast a year ago, as higher fuel and electricity prices make renewables increasingly attractive to investors and consumers.

"Renewables were already expanding quickly, but the global energy crisis has kicked them into an extraordinary new phase of even faster growth as countries seek to capitalize on their energy security benefits," said IEA Executive Director Fatih Birol.

 "The world is set to add as much renewable power in the next five years as it did in the previous 20 years. This is a clear example of how the current energy crisis can be a historic turning point towards a cleaner and more secure energy system," he added.

The war in Ukraine has proved to be a turning point for renewable energy in Europe, where governments and businesses are seeking to replace Russian gas with alternatives as quickly as possible.

Meanwhile, the United States, China, and India are also adopting policies and market reforms to roll out renewables faster than previously planned, the report said.

The IEA said China alone could account for nearly half of the world’s global renewable power capacity additions in the next five years.

Globally, the IEA said the increase would "keep alive the possibility of limiting global warming to 1.5 [degrees Celsius]," referring to the more optimistic target of limiting climate change under the 2015 Paris Agreement.

The report also envisioned that the increase in renewables could exceed its forecast by 25% and possibly bring the world to that target.

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