Renewables saw unprecedented growth in 2022, even as coal usage sets new record
The global energy crisis has resulted in both an expansion of the renewable energy sector and a rise in coal demand.
The global renewable energy sector saw unprecedented growth in 2022, largely due to the energy crisis triggered by Russia’s invasion of Ukraine, according to the International Energy Agency (IEA)
The agency’s Renewables 2022 report on the sector states that total capacity growth will double in the next five years and overtake coal as the largest source of electricity generation by early 2025. Renewables, specifically solar and onshore wind, are also expected to account for 90 per cent of all global electricity expansion over the next five years.
The report explains that renewables have been rolled out in Europe due to sanctions on Russian gas exports. Although governments are participating in expanding green energy options, the report notes that wind and solar energy could be deployed at a faster rate if members of the European Union implemented policies to expedite and incentivize the expansion.
China, the United States, and India were cited as major players that are implementing policies and market reforms faster than previously expected.
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In most countries, the cheapest options for new electricity generation include utility-scale solar and onshore wind. Solar is expected to surpass coal and become the largest global source of power capacity by 2027, which will be driven by the expansion of panels on residential and commercial rooftops.
Biofuel was also noted as an emerging yet significant energy source, with a 22 per cent increase in demand expected from 2022-2027. The U.S., Canada, Brazil, Indonesia, and India have policies in place that are driving this demand, such as blending requirements and financial incentives that utilize domestic feedstocks to boost local economies.
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Despite the advances being made in the renewables sector, the IEA’s Coal 2022 report states that global coal consumption is set to reach a new high in 2022 due to the same global energy crisis that’s prompting renewable growth.
For the first time in history, coal usage will exceed eight billion tonnes in a single year, surpassing the record set in 2013. Global coal demand is projected to plateau at approximately eight billion tonnes through 2025.
“The world is close to a peak in fossil fuel use, with coal set to be the first to decline, but we are not there yet,” Keisuke Sadamori, the IEA’s director of energy markets and security, said in a press release.
“Coal demand is stubborn and will likely reach an all-time high this year, pushing up global emissions. At the same time, there are many signs that today’s crisis is accelerating the deployment of renewables, energy efficiency and heat pumps – and this will moderate coal demand in the coming years. Government policies will be key to ensuring a secure and sustainable path forward.”
The IEA projects coal demand falling in advanced economies in the coming years due to the expansion of renewable energy, but states that emerging and developing economies will continue to rely on coal to support economic growth.
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