Renewables May Overtake Coal as the Largest Energy Source by 2025
A new report from the International Energy Agency (IEA) predicts that renewables are set to account for over 90% of global electricity expansion over the next 5 years and that renewables may overtake coal as the most used energy source globally by 2025.
The current energy crisis has “sparked unprecedented momentum for renewables” according to the report.
“Renewables become the largest source of global electricity generation by early 2025, surpassing coal,” reads the report, “Their share of the power mix is forecast to increase by 10 percentage points over the forecast period, reaching 38 percent in 2027.”
“Renewables were already expanding quickly, but the global energy crisis has kicked them into an extraordinary phase of even faster growth as countries seek to capitalise on their energy security benefits. This a clear example of how the current energy crisis can be a historic turning point towards a cleaner and more secure energy system,” said Fatih Birol, executive director at IEA, in a statement.
Heymai Bahar, a senior analyst at the I.E.A and one of the lead authors of the report said “The expansion of renewable power in the next five years will happen much faster than what the agency forecast just a year ago in its last annual report” The report revised last year’s forecast of renewable growth upward by 30 percent after the introduction of new policies by some of the world’s largest emitters, like the European Union, the United States and China.
After renewable energy overtakes coal in 2025, renewable energy capacity is expected to fully double by 2027. This is largely due to the ongoing global energy crisis which was triggered by Russia’s invasion of Ukraine, gas companies profiteering more than necessary, and supply chain issues resulting from the COVID-19 pandemic.
Due to these factors, there seems to be a global interest in changing how nations produce energy and a huge upward trajectory in investing in renewable sources of energy.
For investors, renewables are a hot ticket item and coupled with EIIS tax relief, the 2023 investment opportunities coming soon from Green Crowd, investment in these sectors will be positive for all.
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