Renewables the Fastest-growing Power Generation Sector, IEA Reports
26 June 2013: The International Energy Agency (IEA) has released its second annual 'Medium-Term Renewable Energy Market Report 2013' (MTRMR), which finds that growth of renewables in the electricity sector is on track to meet the IEA's low-carbon energy scenarios through 2018. The report cautions, however, that policy uncertainty is the main risk facing continued growth in the sector.
According to IEA Executive Director, Maria van der Hoeven, “Many renewables no longer require high economic incentives. But they do still need long-term policies that provide a predictable and reliable market and regulatory framework compatible with societal goals."
Despite a fall in new global investment in 2012, the MTRMR predicts that investment opportunities are likely to grow over the medium term. The report anticipates strong growth in the renewable power sector, which is expected to see a 40% growth over the next five years, leading to an increase in the share of renewables in the global power mix from 20% in 2011 to 25% in 2018. The report also predicts that global renewable electricity generation will surpass that of gas and double that of nuclear by 2016.
The two main drivers of the positive outlook for renewable power generation identified in the report are: the acceleration of investment and deployment in emerging markets, where renewables help meet the rising electricity demand while contributing to climate change mitigation; and the increasing cost-competitivness of renewables in a wider set of circumstances.
Other sections featured in the report include national and regional summaries of OECD countries and Brazil, China, India, Morocco, South Africa and Thailand, as well as global outlooks on biofuels in the transportation sector and renewables for heating. [IEA Press Release] [Publication: Medium-Term Renewable Energy Market Report 2013] [Remarks by IEA Executive Director]