IEA: Renewables to Overtake Gas-Fired Power by 2016

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Hydro, wind, solar and other renewable sources will overtake gas-fired power generation by 2016, according to the International Energy Agency's (IEA) (Paris, France) second annual "Medium-Term Renewable Energy Market Report" (MTRMR).

Despite difficult economic conditions, renewable power, which is the fastest-growing power generation sector, is expected to increase 40% over the next five years and will be 25% of the power mix by 2018, up from an estimated 20% in 2011. Non-hydro sources will double to 8% in 2018, up from 4% in 2011 and 2% in 2006.

Non-OECD countries are expected to account for 66% of the global increase in renewable power sources through 2018. In terms of cost competitiveness, wind competes well with new fossil fuel power plants in several markets, including Brazil, Turkey and New Zealand. Solar is attractive in markets with high peak prices for electricity, including those from oil-fired generation. Decentralized solar photovoltaic generation costs can be lower than retail electricity prices in a number of counties, says the report.

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