22
INNOVATION
New Energy Is Gaining Momentum By Tsvetana Paraskova
Renewable energy and renewable biofuels and hydrogen were already gaining momentum even before the Russian war in Ukraine. Now the UK, the US, and the European Union are determined to free themselves from Russian energy dependence and overhauled their energy security and strategy plans, which rely on acceleration of clean energy usage. Faster energy transition presents its own challenges, considering the tight supply chains in key minerals and critical rare earth elements vital for battery pack manufacturing. Inflation in the costs of steel and polysilicon, combined with high energy prices globally, could reverse a decade of cost cuts and slow down the rollout of wind and solar projects due to higher costs and supply chain bottlenecks.
Record Renewable Installations and Clean Energy Investments Despite rising costs for key materials used to make solar panels and wind turbines, additions of new renewable power capacity rose to 290 gigawatts (GW) in 2021, surpassing the previous all-time high set in the previous year, according to the latest edition of the IEA’s annual Renewables Market Report from December 2021. By 2026, global renewable electricity capacity is expected to jump by more than 60% from 2020 levels to over 4,800 GW – equivalent to the current total global power capacity of fossil fuels and nuclear combined. Renewables are set to account for nearly 95% of the increase in global power capacity through 2026, with solar PV alone providing more than half, the IEA said.
Investment in renewable energy sources and technologies hit a new record in 2021 and is set to remain strong in coming years as many major economies have pledged to achieve net-zero emissions by 2050. Moreover, over the past few weeks many Western governments have committed to reduce or entirely eliminate their dependence on Russian fossil fuels after Europe’s dependence on Russian energy tied its hands and it cannot afford to impose bans on oil, gas, and coal imports from Russia after Putin’s invasion of Ukraine.
www.ogv.energy I April 2022
Still, faster deployment in all clean energy sectors is needed in a scenario where the world achieves net-zero by 2050, the agency added. Policy makers need to address challenges in permitting, grid integration, grid availability, and remuneration for offtakers in order to accelerate clean energy installations and usage, according to the IEA. Installations and battery demand are set to jump by the middle of this decade, analysts say.
