Page 7 - AfrElec Week 19 2022

AfrElec COMMENTARY AfrElec

Renewables set for record growth

in 2022, but 2023 is not so rosy

ASIA RENEWABLES are again set to break global America, which have compensating for slower
records in 2022, with 320 GW of new capacity than anticipated growth in the US.
forecast to come online and new solar projects The US outlook is clouded by uncertainty
in China and Europe driving growth. over new incentives for wind and solar and by
The expansion comes despite rising costs and trade actions against solar PV imports from
bottlenecks across the global supply chain, the China and Southeast Asia.
International Energy Agency (IEA) said in its Meanwhile, in the EU growth is expected to
latest Renewable Energy Market Update. beat the 2021 total of 36 GW. The IEA welcomed
The 320 GW of capacity additions is 8% this as new capacity commissioned for 2022 and
higher than 2021 additions of 295 GW and is 2023 has the potential to significantly reduce the
equivalent to the European Union’s total elec- EU’s dependence on Russian gas in the power
tricity generation from natural gas, and indeed sector.
to Germany’s total power demand. However, the actual contribution will depend
The IEA forecast in its report that solar would on the success of parallel energy efficiency
account for 60% of green growth in 2022, fol- measures to keep the region’s energy demand
lowed by wind and hydropower. in check.
However, growth could flatten and remain “Cutting red tape, accelerating permitting
constant in 2023, as the IEA expects hydro and providing the right incentives for faster
growth to fall and wind expansion to remain deployment of renewables are some of the
steady. most important actions governments can take
Strong policy support from governments in to address today’s energy security and market
China, the European Union and Latin Amer- challenges, while keeping alive the possibility of
ica have caused the rapid growth so far in 2022, reaching our international climate goals,” said
which the IEA said was much faster than ini- IEA Executive Director Fatih Birol.
tially anticipated. Forecast new additions will rise by 8% to 320
The largest growth is in China, the EU & Latin GW in 2021, compared with 6% growth in 2021

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