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Solar panels are mounted on the roof of the Oregon State Capitol. The U.S. is so far lagging its developed-world rivals in bringing more renewable electricity on line, but that may change under a Joe Biden presidency, observers say.
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Global renewable electricity installation will reach a record this year, according to the International Energy Agency, a marker achieved despite COVID-19 slowing energy use around the world.
The IEA report published Tuesday said roughly 90% of new electricity generation in 2020 will be renewable, with just 10% powered by gas and coal. The trend puts green electricity on track to become the largest power source in 2025, displacing coal, which has dominated globally for the past 50 years. By 2025, renewables are expected to supply one-third of the world’s electricity.
Developed-world giants Germany and Japan, for instance, have been major coal burners before recent steps to sever that reliance. Developing nations including India also burn coal regularly.
Renewable-energy use is seen as a key factor in cutting carbon emissions, notably in major economies China, Japan and South Korea, which have all recently stepped up pledges for zero emissions in coming years. The European Union has already led with its own pledge. And U.S. President-elect Joe Biden seeks to decarbonize the power sector by 2035 and reach net-zero emissions across the entire economy by 2050, but will need congressional help.
Read: Biden pledges to return No. 2 polluter U.S. to the defining Paris climate pact Trump just dropped
However, electricity is only about one-fifth of all energy use, with the burning of fuels CL00, +2.03% in transport, industry and heating making up the bulk of energy emissions.
“Renewable power is defying the difficulties caused by the pandemic, showing robust growth while others fuels struggle,” said Fatih Birol, the IEA’s executive director. “The resilience and positive prospects of the sector are clearly reflected by continued strong appetite from investors.”
The IEA noted in its report that shares in renewable energy-equipment makers and project developers BE, +3.22% have outperformed most major stock market indicesSPX and that generally, the value of shares in solar companies FSLR, -5.13% ICLN, -1.21% TAN, -2.50% SEDG, -1.01% has more than doubled since December 2019.
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Solar power capacity has increased by 18 times since 2010 and wind power by four times, according to IEA data. In October, Birol said he predicts “solar becoming the new king of the world’s electricity markets.”
Hydropower provided 77% of green power in 2010, but that has fallen to 45% in 2020, the report showed.
