Record-Breaking Shift in Global Power Generation

Renewable energy has taken the title as the leading source of power generation, surpassing coal for the first time in 2020, according to a report released by the International Energy Agency (IEA). Solar energy proved to be a major player, with the world installed a record-breaking 130 gigawatts (GW) of photovoltaic capacity last year.

Solar accounted for about 25% of newly installed capacity worldwide, fueled by declining prices and ambitious renewable energy targets set by governments.

New Leader in Energy Mix

Coal, on the other hand, lost its grasp on the global energy crown, with installations plummeting 23% compared to the previous year. Despite this shift, coal remains the world’s second-largest source of power, supplying around 30% of global generation.

Fossil fuel-based power plants still make up a significant portion of the global energy mix. Despite this, renewable energy recorded a record high of around 1.2% of the total energy installed in 2020. The rise in renewable power not only helped in reducing CO2 emissions but also had a significant impact on clean energy job market.

Significance and Prospects for the Future

This pivotal shift from coal to renewables has severe implications for the energy and climate debate. The drop in coal installation is mostly attributed to regulations and investments in cleaner technologies. Looking ahead, IEA Chief Economist, Fatih Birol, predicted that with the ongoing pandemic, nations may reassess their clean energy ambitions.

Policymakers and market participants should, however, recognize this critical moment – as it demonstrates the urgent need for rapid and committed action in accelerating the green energy transition, ensuring secure and sustainable growth for this sector.

IEA’s Chief Economist added: “Reaching net-zero emissions, which is what we urge governments to adopt, and to ensure global energy market stability, significant investments should be made in renewable sources and clean technologies.”