Solar energy expanded at a strong pace in 2021, both in terms of new capacity additions and new markets, according to BNEF's (BloombergNEF) annual Power Transition Trends report, released this Wednesday (21).
In the report, the research company points out that of all the capacity added in the world last year, which was 364 GW, the solar source was responsible for 50%. This amount represents an increase of 25,5% compared to the volume recorded in 2020.
“The source was half of all global capacity added, at 182 GW. Its contribution to global grids surpassed 1.000 TWh for the first time. In nearly half of all countries tracked by BNEF where some capacity was added, solar was the top choice in terms of volume. At least 112 countries now have at least one MW of installed solar capacity,” the company reported.
On the other hand, wind additions – despite recording 25% of all installed capacity and coming right after the photovoltaic source – had a reduction of 7,5% compared to 2020.
Wind and solar exceed 10% of all global generation
The report further pointed out that with almost 3.000 TWh of electricity produced, wind and solar energy accounted for 10,5% of global generation in 2021. It was the first time that the world's wind and solar projects met more than a tenth of global electricity demand, according to a BNEF survey.
This amount indicates that the contribution of wind energy to the global total rose to 6,8%, while solar energy rose to 3,7%. A decade ago, these two technologies combined represented less than 1% of total electricity production.
“Renewables are now the default choice for most countries looking to add or even replace power generation capacity,” he said Luiza Demoro, boss of BloombergNEF energy transitions.
“This is no longer due to mandates or subsidies, but simply because these technologies are more often than not more cost-competitive,” he added.
Challenges in the energy transition
Despite the incredible inroads renewables have made, the Power Transition Trends report paints a clear picture of the enormous work that remains for the energy system to address its role in climate change.
As the global economy recovers from the Covid-19 pandemic, demand for electricity has increased by 5,6% year-on-year, placing new pressures on existing infrastructure and fossil fuel supply chains.
Lower-than-expected output from hydroelectric plants and higher natural gas prices have also helped put coal power back in the spotlight in more markets.
Coal plant production set records by jumping 8,5% from 2020-2021 (750 TWh increase on a net basis), to 9.600 TWh. More than 85% of this generation came from 10 countries, with China, India and the US alone accounting for 72%.
Meanwhile, countries continued to complete construction of new coal plants in 2021, and coal still represents the largest share of global capacity at 27%.
One small positive: the speed at which new coal is being added to the grid is slowing. Just 13 GW of new coal capacity was completed in 2021, down from 31 GW in 2020 and 83 GW in 2012.
“However, the result was a proportional 7% increase in global power sector CO2 emissions in 2021 compared to 2020. Power sector emissions reached a new record of 13.600 mega tonnes of CO2,” BNEF estimated .
“It was a year of ups and downs, for the best and worst reasons,” said Ethan Zindler, head of the Americas at BNEF. “Renewables have grown very quickly, but the return of coal and the fact that countries – including those that have committed to achieving net-zero emissions – continue to build coal is really disconcerting,” he concluded.
BNEF's Power Transition Trends report was produced in partnership with Bloomberg Philanthropies and will be officially launched at the United Nations Climate Action Forum: Race to Zero and Resilience in New York today.
An answer
There should be government incentives for installation for the lower income population as it is still very expensive in general!