Although demand for electricity has declined considerably, due to the Covid-19 pandemic, the growth of renewable energies in the electricity sector continues at a record pace, according to a report by the International Energy Agency.
According to the IEA, natural gas and coal are in their final chapter. “In 2025, renewable energies are expected to become the largest source of electricity generation in the world, ending five decades of coal as the main energy supplier,” said the director of the International Energy Agency, Fatih Birol.
The IEA noted that the shares of publicly classified renewable energy manufacturers and project developers outperformed the energy sector in general and most of the major stock market indices.
Subsidies also play an important role, and the IEA report warns policymakers that the mechanism for maintaining momentum needs to be developed as the expiration of incentives could lead to a decline in 2022.
“Renewable energies are resilient to the Covid crisis, but not to political uncertainties”, defends Birol.
If the main collective incentives, however, an IEA hopes that the growth of solar photovoltaic and wind energy can accelerate to 25% in 2022.
“Governments can address these issues to help bring about sustainable recovery and accelerate clean energy transitions,” added Birol.
However, as renewable energies outside the electricity sector are suffering the impact of the Covid-19 pandemic, according to the IEA.
Biofuels have been affected by the drop in transport and industrial activity, as countries have imposed restrictions to curb the spread of the coronavirus.