Strong Future Growth for Renewable Energy

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- The renewable energy juggernaut looks set to keep gathering speed in the medium term with a growth projection of more than 40%, despite the global economic crisis.

The International Energy Agency (IEA) announced that global power generation from hydropower, solar, wind and other renewable sources is projected to increase to 6,400 terawatt hours (TWh) by 2017, up by 1,840 TWh since 2011. The Medium-Term Renewable Energy Market Report 2012 is the first time renewable energy has received a more detailed, medium-term projection from the IEA, which it attributes to the "dynamic and increasing role of renewable energy in the global power mix". Traditionally, IEA medium-term market reports focus on oil, natural gas and coal.

While Europe dominates the renewable energy sector today, the IEA said that renewable generation will increasingly shift from the OECD to new markets, with non-OECD countries accounting for two-thirds of the projected growth. Of the 710,000 megawatts (MW) of new global renewable electricity capacity expected, China will account for almost 40%. Other countries expected to play a significant role will be Germany, the United States, India and Brazil.

"Renewable energy is expanding rapidly as technologies mature, with deployment transitioning from support-driven markets to new and potentially more competitive segments in many countries," IEA Executive Director, Maria van der Hoeven, said at the launch of the report. "Given the emergence of a portfolio of renewable sources as a crucial pillar of the global energy mix, market stakeholders need a clear understanding of the major drivers and barriers to renewable deployment. Based on these factors, this report forecasts global renewable development and, in so doing, provides a key benchmark for both public and private decision makers."

The study examines in detail 15 key renewable energy markets, which represent about 80% of renewable generation.

Key findings of the report include:

- Hydropower continues to account for the majority of renewable generation and it registers the largest absolute growth (+730 TWh) of any single renewable technology over 2011-17, largely driven by non-OECD countries.

- Non-hydropower renewable technologies continue to scale up quickly. Between 2011 and 2017, generation from these technologies increases by over 1,100 terawatt hours (TWh), with growth equally split between OECD and non-OECD countries.

- Onshore wind, bioenergy and solar PV see the largest increases, respectively, in generation after hydropower. Offshore wind and CSP grow quickly from low bases. Geothermal continues to develop in areas with good resources. Ocean technologies take important steps towards commercialisation.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.