Renewable Energy Market Update 2020

Renewable Energy Market Update 2020

The demand for energy resources is the only demand that has increased in 2020 in the pandemic, whereas all the other consumptions of fuels declined.

Establishing new normal for additional capacity in 2021 and 2022

There is a high expectation in the rise of renewable energy capacity and an exceptional level with 270 GW to become operational in 2021 and 280 GW in 2022. The renewable resources increase by 90% of the power capacity in both 2021 and 2022 is what is expected. By over 50%, the expansion will exceed the record level of annual capacity additions of 2017 to 2019.

Renewable Energy Market Update 2020

Europe accelerates deployment to become the second-largest in the renewable power market before China.

There is an increased forecast to increase the annual capacity 11% to 44GW in 2021 and 49GW in 2022. There will be a record for yearly additions this year for the first time after 2011. China will be leading with Europe behind it for becoming the most significant market. Germany will deliver the largest renewable capacity addition, followed by France, Spain, the Netherlands, Turkey, and the United Kingdom.

Auction volumes to boost the renewable deployment in 2021 and 2022

Due to the pandemic, there was a decline in the demand for electricity and wholesale power price.  This drops due to the impacts of the pandemic, so governments worldwide have auctioned a record amount of renewable energy capacity that awards at almost 75 GW of onshore wind, solar PV, offshore wind, and bioenergy, which is 20% more than 2019.

The auctions held in 2020 and 2019 will remain the primary basis for 2021 and 2022.

Solar PV

The corporations for bilateral contracts are getting more preference with large-scale solar PV plants, which are expected to meet the energy demand. The cost reduction and continuous support of a policy from 120 governments worldwide have allowed the PV capacity additions to expand to 162 GW in 2022.

Dominating large projects over solar PV market

In annual PV additions, the share of utility-scale applications is to be increased from 55% in 2020 to up to 70% in 2022. For the deployment of residential applications, sustained support has been doubled from 2019 to 2020. Europe and the US have done larger utility-scale projects that are more attractive economically.

Renewable Energy Market Update 2020

Wind

The wind capacity additions reached 114 GW in 2020, which is almost double the 2019 expansion. The wind market in 2021 is expected to be 30%, much weaker than 2019 at 80 GW, even though it was still significantly exceeding 2019 additions. The 2022 year is being expected to go a little higher both onshore and offshore. Even after the record of 10% in 2019, there was a decline in the total wind addition offshore share in 2020. The forecast is a rebound in breaking the record of 12% in 2021-2022.

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