{"id":22574,"date":"2020-07-03T14:15:07","date_gmt":"2020-07-03T11:15:07","guid":{"rendered":"https:\/\/euea-energyagency.org\/?p=22574"},"modified":"2020-07-03T14:40:23","modified_gmt":"2020-07-03T11:40:23","slug":"renewable-energy-market-update-for-2020-2021-according-to-iea-report","status":"publish","type":"post","link":"https:\/\/euea-energyagency.org\/en\/news\/market-news\/renewable-energy-market-update-for-2020-2021-according-to-iea-report\/","title":{"rendered":"Renewable energy market update for 2020-2021 according to IEA report"},"content":{"rendered":"<p style=\"text-align: left;\">In its report &#8211; Renewable energy market update, outlook for 2020 and 2021 &#8211; International<br \/>\nEnergy Agency (IEA) forecasts that additions of renewable electricity capacity will decline<br \/>\nby 13% in 2020 compared with 2019, the first downward trend since 2000. The update<br \/>\nreflects both possible delays in construction activity due to supply chain disruptions,<br \/>\nlockdown measures and socialdistancing guidelines, and emerging financing challenges. The<br \/>\noutlook also takes into account ongoing policy uncertainty and market developments such as<br \/>\nthe most recent auctions and newly financed projects before the Covid-19 outbreak.<br \/>\nHowever, the majority of these delayed projects are expected to come online in 2021 and lead<br \/>\nto a rebound in capacity additions. As a result, 2021 is forecast to almost reach the level of<br \/>\nrenewable capacity additions of 2019. Despite the rebound, the combined growth in 2020 and<br \/>\n2021 is almost 10% lower compared to the previous IEA forecast.<\/p>\n<p style=\"text-align: left;\">The highlights of Renewable energy market update are the following:<br \/>\n1. The Covid-19 crisis is hurting \u2013\u00a0but not halting\u00a0\u2013 global growth in renewable power<br \/>\ncapacity. The number of new renewable power installations worldwide is set to fall<br \/>\nthis year as a result of the unprecedented Covid-19 crisis, marking the first annual<br \/>\ndecline in 20 years. But, given supportive government policies, growth is expected to<br \/>\nresume next year as most of the delayed projects come online.<\/p>\n<p style=\"text-align: left;\">2. In 2021, renewables are expected to show their resilience \u2013 the majority of the<br \/>\ndelayed projects are expected to come online, leading to a rebound in new<br \/>\ninstallations. As a result, next year is forecast to reach the same level of renewable<br \/>\nelectricity capacity additions as in 2019. Despite the rebound, combined growth in<br \/>\n2020 and 2021 is almost 10% lower compared to the previous IEA forecast published<br \/>\nin October 2019.<\/p>\n<p style=\"text-align: left;\">3. Solar PV and wind account for 86% of global renewable capacity additions this year,<br \/>\nbut their annual expansion is forecast to decline by 17% and 12% respectively<br \/>\ncompared to 2019. The forecast expects utility-scale PV and wind to rebound as the<br \/>\nmajority of projects in the pipeline are already financed and under construction.<br \/>\nHowever, forecast uncertainty remains for projects that were due to achieve financial<br \/>\nclose in 2020 and become operational next year.<\/p>\n<p style=\"text-align: left;\">4. The impact of Covid-19 on renewable electricity technologies with long lead times,<br \/>\nsuch as hydropower, offshore wind and geothermal, remains limited. Hydropower<br \/>\ncapacity additions are forecast to increase both in 2020 and 2021, driven by the<br \/>\ncommissioning of two mega hydropower projects in China and supporting the<br \/>\nrebound of renewables next year. The forecast for offshore wind remains unchanged<br \/>\nas most projects are already financed and under construction.<\/p>\n<p style=\"text-align: left;\">5. The Covid-19 crisis has radically changed the global context for biofuels. Transport<br \/>\nbiofuel production is anticipated to contract by 13% in 2020, the first decrease in output in two decades. Gasoline demand is forecast to fall by 9% in 2020 and diesel<br \/>\ndemand by around 6%. This, in turn, limits biofuel consumption resulting from<br \/>\nmandate policies. Some of the impacts from the Covid-19 pandemic could be<br \/>\ntemporary. If a rebound in transport fuel demand occurs in 2021, biofuel production<br \/>\ncould return to 2019 levels. However, this would still be 5% lower than the output<br \/>\nanticipated in our forecast for 2021 prior to the Covid-19 crisis. Longerterm<br \/>\nimplications for growth may arise from the suspension of new policy initiatives in<br \/>\nsome countries due to low oil prices.<\/p>\n<p style=\"text-align: left;\">6. Renewable heat consumption is also likely to decline in 2020. The industrial sector is<br \/>\nexpected to consume less renewable heat as lower commercial, industrial and<br \/>\nconstruction activity during lockdown results in a demand shock for most heat-<br \/>\nintensive industries. Moreover, current low oil and gas prices are affecting the cost-<br \/>\ncompetitiveness of renewable heat fuels and technologies: many planned investments<br \/>\nto switch from fossil fuel heating to renewable or electric solutions are likely to be<br \/>\npostponed or cancelled in the absence of stronger policies.<\/p>\n<p style=\"text-align: left;\">7. At the start of this year, renewables in several markets were already facing challenges<br \/>\nregarding financing, policy uncertainty and grid integration. Covid-19 is now<br \/>\nintensifying these concerns. However, governments have the opportunity to reverse<br \/>\nthis trend by making investment in renewables a key part of stimulus packages<br \/>\ndesigned to reinvigorate their economies. This offers the prospect of harnessing the<br \/>\nstructural benefits that increasingly affordable renewables can bring, including<br \/>\nopportunities for creating jobs and economic development, while reducing emissions<br \/>\nand fostering innovation.<\/p>\n<p style=\"text-align: left;\">Link to the original text: <a href=\"https:\/\/cutt.ly\/HohwGqh\">https:\/\/cutt.ly\/HohwGqh<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In its report &#8211; Renewable energy market update, outlook for 2020 and 2021 &#8211; International Energy Agency (IEA) forecasts that [&hellip;]<\/p>\n","protected":false},"author":135,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[125],"tags":[],"class_list":["post-22574","post","type-post","status-publish","format-standard","hentry","category-market-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - 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