Renewable Energy Sees Record Growth Amid Energy Transition

Renewable energy capacity surpassed fossil fuels in 2020, with a record 140 gigawatts (GW) of new installations worldwide. This significant milestone marks a crucial turning point in the energy transition, as governments and industries alike shift focus towards sustainable and low-carbon solutions.

Achieving a Critical Mass

Solar energy accounted for the largest share of new capacity additions, with 72 GW installed globally. The United States, China, and India emerged as the top three markets for solar expansion, driven by declining costs, policy support, and increasing demand. Onshore wind energy followed closely, with 44 GW installed worldwide.

Solar and Wind Power Become the New Norm

The cost of solar and wind energy has dropped dramatically over the past decade, making them more competitive with fossil fuels. This shift has led to a significant increase in project pipelines, with many companies investing heavily in renewable energy assets. In fact, solar and wind power now account for over 40% of global power capacity additions.

The Energy Transition Accelerates

The surge in renewable energy installations has significant implications for the energy landscape. As the transition gains momentum, coal and gas-fired power plants are facing declining demand, leading to reduced emissions and a reduced reliance on fossil fuels. The International Energy Agency (IEA) projects that by 2025, renewables will account for 30% of global energy consumption.

A Path Forward

The rapid growth of renewable energy underscores the urgent need for continued policy support, infrastructure development, and technological innovation. Governments, industries, and investors must work together to drive the energy transition forward, ensuring a sustainable and low-carbon future for generations to come.