The Strategist

Green energy got ahead of fossil fuels for the first time ever

10/26/2016 - 16:19

For the first time in the history, green electricity in 2015 grew higher than fossil fuel generation, as follows from new IEA’s report.

In 2015, eco-friendly electric power industry produced 153 GW more than convenient energy sources did, according to report of the International Energy Agency (IEA) on medium-term market prospects for renewable energy sources. As noted by Bloomberg, total increase in generating capacity in 2015 was 55% of the, which means that introduction of environmentally friendly power got ahead of fossil fuels for the first time in history.

Eco-friendly electricity as a whole increased by 15% compared to 2014 year, the IEA said. According to the agency, rise of "clean" energy mainly comes from wind (66 GW) and solar (49 GW) sources.

The global energy market of oil is now being transformed under pressure from renewable energy. The trend is led by emerging economies, said Executive Director of the IEA Fatih Birol.

According to IEA’s estimates, 500 thousand solar panels were installed every day in 2015 every day around the world. The organization’s forecast states that by 2021 share of green energy in the global market will rise to 42%. As for the electric-power industry, eco-friendly energy there will occupy 28% (23% in 2015), the agency predicts.

The IEA says China will become the world leader in clean energy generation. The country is expected to provide about 40% of total growth by 2021. In 2015, according to the IEA, China has instelled an average of two wind turbine per hour. This is mainly explained by public pressure on the Chinese authorities in connection with air pollution in Chinese cities. The picture is different in the developed economies (the EU, US and Japan). According to the IEA forecast, green energy there will not keep up with growth of energy consumption in the period from 2015 to 2021.

The organization named yet another "clean" energy leader. By 2021, the energy power produced from renewable sources n India will grow by 76 GW. The country’s eco-friendly energy sector is strongly supported by authorities, which have planned to spend $ 3.1 billion on development of solar energy infrastructure. Indian Prime Minister Narendra Modi set a target to increase generation from renewable sources up to 175 GW by 2022. Currently, the figure stands at 45 GWh.

Global investment in clean energy totaled $ 42.4 billion in the third quarter of 2016, which is 43% less than volume of investments of the third quarter last year, and is slightly higher than lowest level of quarterly investment over the last three years ($ 41.8 billion in the first quarter of 2013), says Bloomberg New Energy Finance report.

Financial support of large solar and wind energy projects has declined sharply as number of governments have decided to reduce incentives for development of clean energy sources, analysts say. Total investment for the year will be "significantly below" last year's record of $ 348.5 billion, predicts New Energy Finance.

Another reason for the sharp decline in "green" investments is associated with jump in popularity of offshore wind energy sources. Investors injected $ 20.1 billion in construction of wind power plants in Europe, which is a "stunning record". Later. However, the investment has been significantly reduced - to $ 2.4 in the third quarter.