Solar power set to overtake coal as war in Ukraine fuels renewables boom

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In a previous blog post in November, Klement had noted that companies with better share price performance were more likely to receive a strong ESG rating under MSCI than competitor Refinitiv.
In a previous blog post in November, Klement had noted that companies with better share price performance were more likely to receive a strong ESG rating under MSCI than competitor Refinitiv.

Solar power will become the world’s biggest source of electricity within the next five years, according to the International Energy Agency (IEA).

The Paris-based climate agency revealed Russia’s invasion of Ukraine is powering a massive ramp up in renewables, with the world set to add as much renewable power in the next five years as it did in the past 20 years.

The IEA forecasts overall, renewables will become the largest source of global electricity generation by early 2025.

Global renewable power capacity is now expected to reach by 2,400 gigawatts (GW) over the 2022-2027 period, an amount equal to the entire power capacity of China today.

The IEA forecasts renewables are set to account for over 90 per cent of global electricity expansion over the next five years, collectively overtaking coal to become the largest source of global electricity by early 2025.

This will be chiefly driven by solar power, which will overtake coal on its own to become the chief of electricity source by 2027.

The projected increase in renewable power is 30 per cent higher than the growth forecast just a year ago, exposing how quickly governments have thrown additional policy weight behind renewables.

The new findings were released in Renewables 2022, the latest edition of the IEA’s annual report on the sector, where the IEA argued the war triggered a “turning point” that is forcing countries to prioritise domestic energy security.

IEA Executive Director Fatih Birol said: “This is a clear example of how the current energy crisis can be a historic turning point towards a cleaner and more secure energy system.”

He also suggested the boost in renewable energy generation would also keep the goals of the Paris Agreement within reach, with countries pledging to limit global warming to “well below” two degrees from pre-industrial levels.

Downing Street has set its own ambitious domestic goals for boosting renewable energy generation including ramping up offshore wind from 11GW to 50GW by the end of the decade, raising solar generation to 70GW by 2035, and hydrogen from less than 1GW to 10GW.