In 5 years, 95% of global electricity will come from clean sources, India’s capacity to jump by 86%: IEA

A new report from the International Energy Agency (IEA) projects that India is expected to add 121 gigawatts (GW) of electricity to its current capacity from clean energy sources by 2026. The agency predicted an 86% jump from its current capacity of 154.9 GW. The report says renewable energy could account for nearly 95% of the increase in electricity capacity worldwide over the next five years.

The ability to generate electricity from solar, wind and other renewable technologies is set to accelerate over the next few years, with 2021 set to set a new all-time record for new installations. , according to the report, taking into account a drop of 44%. in renewable facilities in 2020 in India due to the lockdown and supply chain disruptions caused by Covid-19.

“Renewable energy growth in India is exceptional, supporting the recently announced government target of reaching 500 GW of renewable energy capacity by 2030 and highlighting India’s wider potential to accelerate its transition to clean energy, “IEA Executive Director Fatih Birol said in a statement.

The report predicted a 16% increase in power wind and hydroelectric power generation, while solar remains the engine of renewable electricity growth, with its capacity additions expected to increase by 17% in 2021 to reach a new record of nearly 160 GW.

The report also highlighted the critical challenge facing distribution companies (DISCOM) in India, stating: “Government financial support in 2020 has resulted in a downward trend in overdue payments in the first quarter of 2021, thereby improving corporate finances. Following the second wave of restrictions, their total payment arrears started to rise again in the second quarter of 2021. As a result, they are postponing the finalization of the wind and solar PV PPAs while seeking to renegotiate downward the prices of the already existing contracts. awarded through competitive tenders. “

At the recent COP26 summit in Glasgow, India announced that it would meet 50% of its energy needs through renewables by 2030, increasing its non-fossil energy capacity to 500 GW during the same period and increasing the carbon intensity of its economy. up to 45 percent.

The report also says that if the government steps up clean energy production, it could put the country firmly on track to meet the 2030 goals.

“Governments can further accelerate the growth of renewables by addressing key barriers, such as licensing and grid integration issues, issues of social acceptance, inconsistent policy approaches and insufficient remuneration. High financing costs in the developing world are also a major obstacle, ”the report says. Noted.

The report further predicts that global renewable energy capacity this year will reach a second consecutive all-time high in 2021.

In its annual report on the renewable energy market, the Paris-based energy watchdog said that renewable electricity capacity by 2026 will be equal to the current total global electricity capacity of fossil fuels and electricity. nuclear power combined.

Meanwhile, China leads the world in new capacity and is four years ahead of its own targets for wind and solar infrastructure. “China continues to demonstrate its strengths in clean energy, with the expansion of renewable energies suggesting that the country may well reach a peak in its carbon dioxide emissions well before 2030,” Fatih Birol added.