IEA hikes forecast for five-year renewable energy use

PARIS, Oct 25 (KUNA) -- The International Energy Agency (IEA), which groups major global energy consumers in the OECD area, said in a report Tuesday that use of renewable energy sources is set to rise sharply in the coming five-year period and will grow faster than previously expected.
"Renewables will be the fastest-growing source of electricity but growth is still concentrated in wind and solar (power), and government support remains critical," IEA report said, noting the Agency was "significantly increasing its five-year growth forecast." The move towards more renewable energy sources results from "strong policy support in key countries and sharp cost reductions," and renewable energy sources in 2015 surpassed coal "to become the largest sources of installed power capacity in the world," the Paris-based IEA noted.
Latest forecasts in the agency's "Medium-Term Renewable Market Report" now indicate that use of renewable energy will grow 13 percent faster between 2015-2021 than predicted a year ago.
In addition, in the same five-year period, "renewables will remain the fastest-growing source of electricity generation, with their (market) share growing to 28 percent in 2021 from 23 percent in 2015," the report indicated. Moreover, renewable energy sources are also forecast to cover more than 60 percent of the increase in world electricity generation over the medium term, rapidly closing the gap with coal.
Solar and wind energy make up a large part of this new power generation and their use is growing rapidly, the report stated.
"About half a million solar panels were installed every day around the world last year. In China, which accounted for about half the wind additions and 40 percent of all renewable capacity increases, two wind turbines were installed every hour in 2015," according to the IEA.
But the Agency cautioned that the progression for renewable energy use was still dependent on sustained policies and investment and "the cost of financing remains a barrier in many developing countries", in addition to some integration problems from the too rapid development of energy systems like wind and solar.
The report said that "while 2015 was an exceptional year, there are still grounds for caution (as)...policy uncertainty persists in too many countries, slowing the pace of investments." (End) jk.tg