Page 5 - AfrElec Week 19 2021

AfrElec COMMENTARY AfrElec

of federal tax credits. for HVO, which is a renewable alternative to
The forecast does not take into account the diesel, is anticipated to nearly double in the next
US administration’s new emissions reduction two years, significantly expanding the capability
targets or its infrastructure bill. If enacted, the of producing biofuels from waste and residue
bill would drive a much stronger acceleration in feedstocks.
the deployment of renewables after 2022.
India’s capacity additions declined by almost Beyond 2021
50% last year compared with 2019. However, Nevertheless, the figures for solar and wind in
growth is set to rebound and renewable expan- 2020 are spectacular. Global wind capacity addi-
sion is expected to set a new record by 2022, tions expanded by 90 GW, while new solar PV
driven by the commissioning of delayed projects. installations rose by 23% to 135 GW in 2020.
However, the current surge in COVID-19 cases Another key driver for 2020’s performance
in India has created short-term uncertainty for was the rush to commission projects prior to
this year. policy deadlines in China, the US and other
Transport biofuel production declined 8% countries such as Vietnam. Developers con-
globally in 2020 as the pandemic limited travel. nected almost 150 GW of new renewable capac-
Production is expected to recover this year to ity in Q4 of 2020, more than in the first three
2019 volumes, and expand another 7% in 2022 quarters of the year.
as biodiesel and hydrotreated vegetable oil Looking ahead, renewables are expected to
(HVO) production increases globally and eth- account for 90% of total global power capacity
anol expands in India. increases in both 2021 and 2022, the IEA said.
However, the ongoing effects of the COVID- With coal refusing to decline and seeing a small
19 crisis on demand, as well as price competition recovery in some places such as China, govern-
for sugar cane from sweetener manufacturers in ments need to continue to create the right con-
Brazil, continue to keep ethanol production in ditions for rapid solar and wind growth if the
both the US and Brazil below 2019 levels. world is decarbonise the economy and reach net
At the same time, global production capacity zero.™

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