The corona crisis causes many problems and financial setbacks on a daily basis. Although it has brought bad news in many areas, the corona crisis has brought a small bright spot. The bright spot in this case has a rather literal meaning. The generation of renewable energy from the sun and wind is growing exponentially.
Exponential growth of renewable energy
The electricity generated from the wind and sun currently doubles every five years. The International Energy Agency's new 'Renewables 2020' report shows that electricity generation from solar and wind energy will overtake natural gas in 2023. A year later, this will also be the case for coal.
The influence of the coronavirus on energy demand
The IEA report shows that the development and spread of the coronavirus has had a major impact on energy demand. At the beginning of the crisis, energy demand declined dramatically, resulting in a plunging price of oil and gas. Large oil companies also saw the value of their shares fall.
Although the agency predicted at the beginning of the year that the rapid growth of green energy would slow down, it now appears that renewable energy is growing faster than expected. By 2020, the use of renewable energy sources will increase by almost 7%, while global energy demand will decrease by 5% this year. This leads to a net increase of 1% in the demand for renewable energy.
The predictions over
The IEA has been predicting the growth of renewable energy for years. The predictions are made based on different scenarios. In practice, the development of renewable energy often takes place around or even above the fastest scenario. Also in the most recent report, a scenario with a strong acceleration is used. Whether this scenario will become a reality depends in part on the implementation of state aid. If the economic recovery packages place additional use on renewable energy and savings measures, there is a good chance that developments will take place according to the fastest scenario.
The sun as a cheap energy source
Despite the corona crisis, the climate agreement ensures that many countries will invest in renewable energy sources. The measures agreed ensure that there have already been many technical breakthroughs in the field of renewable energy sources in recent years. As a result, there has been a 70% fall in prices in this sector over the last 5 years. In this way, new sustainable solutions such as a carport with solar panels are also being realised on a larger scale.
Solar energy will therefore quickly become the cheapest source of energy. This is already the case in many parts of the world. Thanks to the new technologies, the rest of the world will soon follow and the future will look bright!
Want to know more about the research or read the whole report? Then visit the IEA website.