INDUSTRY REPORT solar installations by households and companies are expected to help consumers save money as electricity bills rise ,” explained the IEA .
Solar and wind power are key sources of energy ( Shutterstock . com ).
sector . However , the actual contribution will depend on the success of parallel energy efficiency measures to keep the region ’ s energy demand in check .
“ Energy market developments in recent months – especially in Europe – have proved once again the essential role of renewables in improving energy security , in addition to their well-established effectiveness at reducing emissions ,” said IEA Executive Director , Fatih Birol . “ Cutting red tape , accelerating permitting and providing the right incentives for faster deployment of renewables are some of the most important actions that governments can take to address today ’ s energy security and market challenges , while keeping alive the possibility of reaching our international climate goals .”
Renewables ’ growth so far this year is much faster than initially expected , driven by strong policy support in China , the European Union and Latin America , which are more than compensating for slower than anticipated growth in the United States . The U . S . outlook is clouded by uncertainty over new incentives for wind and solar and by trade actions against solar PV imports from China and Southeast Asia .
“ Based on today ’ s policy settings , however , renewable power ’ s global growth is set to lose momentum next year . In the absence of stronger policies , the amount of renewable power capacity added worldwide is expected to plateau in 2023 , as continued progress for solar is offset by a 40 % decline in hydropower expansion and little change in wind additions ,” said the IEA .
While energy markets face a wide range of uncertainties , the strengthened focus by governments on energy security and affordability – particularly in Europe – is building new momentum behind efforts to accelerate the deployment of energy efficiency solutions and renewable energy technologies . The outlook for renewables for 2023 and beyond will therefore depend to a large extent on whether new and stronger policies are introduced and implemented over the next six months .
“ The current growth in renewable power capacity would be even faster without the current supply chain and logistical challenges . The cost of installing solar PV and wind plants is expected to remain higher than pre-pandemic levels throughout 2022 and 2023 because of elevated commodity and freight prices , reversing a decade of declining costs . However , they remain competitive because prices for natural gas and other fossil fuel alternatives have risen much faster ,” said the IEA .
Policy uncertainties , as well as long and complex permitting regulations , are preventing much faster growth for the wind industry . Having plunged 32 % in 2021 after exceptionally high installations in 2020 , additions of new onshore wind capacity are expected to recover slightly this year and next .
“ New additions of offshore wind capacity are set to drop 40 % globally in 2022 after having been buoyed last year by a huge jump in China as developers rushed to meet a subsidy deadline . But global additions are still on course to be over 80 % higher this year than in 2020 . Even with its slower expansion this year , China will surpass Europe at the end of 2022 to become the market with the largest total offshore wind capacity in the world ,” said the IEA .
“ Biofuel demand recovered in 2021 from its pandemic lows to reach more than 155 billion litres – near 2019 levels . Demand is expected to keep rising by 5 % in 2022 and 3 % in 2023 . However , the impacts of Russia ’ s invasion of Ukraine have contributed to a 20 % downward revision of our previous forecast for biofuel growth in 2022 . Since biofuels are blended with gasoline and diesel , much of the downward revision stems from slowing demand for transport , which has been depressed by a combination of factors including growing inflationary pressures , weaker global economic growth and Covid-related mobility restrictions in China ,” commented the IEA .
The world ’ s demand for natural gas is set to decline slightly in 2022 as a result of higher prices and market disruptions caused by Russia ’ s invasion of Ukraine , according to the International Energy Agency ’ s latest quarterly update .
Russia ’ s attack on Ukraine has added further pressure and uncertainty to an already tight natural gas market , especially in Europe . While there are no legal restrictions on importing Russian natural gas to the European Union at this point , the war has pushed EU governments to seek to reduce their dependence on Russian fossil fuel imports as quickly as possible . The IEA published a 10-Point Plan on 3 March 2022 outlining a suite of measures to reduce the volume of Russian gas imports into Europe by over a third within a year while remaining consistent with the EU ’ s climate ambitions .
Spot gas prices have soared to record highs as Europe ’ s push for
“ Global additions of solar PV capacity are on course to break new records in both this year and next , with the annual market reaching 200 GW in 2023 . Solar ’ s growth in China and India is accelerating , driven by strong policy support for large-scale projects , which can be completed at lower costs than fossil fuel alternatives . In the European Union , rooftop
Pipeline fabrication ( FACCIN ).
26 | sheetmetalplus . com | ISMR June 2022