Renewable energy sets new global supply record

Global renewable energy capacity saw its largest annual increase ever,  reaching 10 gigawatts (GW) of new generation installed worldwide.

That’s according the latest Renewables Global Status Report from renewable energy coalition REN21.

The report states that in 2016, renewable energy provided nearly 20 percent of the world’s final power consumption.

Most of the new growth came from developing countries, with China remaining the single largest developer of renewable power and heat since 2011.

Global additions of renewable power capacity outpaced all (net) fossil fuel capacity combined, accounting for around 62 percent of net additions to global power generating capacity in 2016.

Plummeting costs drive increase in solar PV, wind power

Solar capacity made up majority of new generation in 2016. Image: REN21
Solar capacity made up majority of renewable energy generation in 2016. Image: REN21

Solar PV was the star performer in 2016, accounting for around 47 percent of the total additions, followed by wind power at 34 percent and hydropower at 15.5 percent,” the report states.

Investments in new renewable capacity in 2016 reached USD 249.8 billion (AUD 330 billion), roughly double the investments in fossil fuel capacity.

This was due to record-breaking tenders for solar PV occurring across markets in Argentina, Chile, India, Jordan, Saudi Arabia and the United Arab Emirates, below USD 0.03 per kilowatt-hour (kWh).

Record bids for offshore wind energy in Europe brought that industry closer to its goal to generate offshore wind power more cheaply than coal by 2025.

Renewable energy able to provide “baseload” power

The “myth” that coal and nuclear power are needed to provide baseload generation has been proven false, the report notes.

In 2016 Germany and Denmark successfully absorbed respective peaks of 86.3 and 140 percent electricity generation from renewable sources.

Clean power not just for the wealthy

In a world where over a billion people don’t have access to electricity,  distributed off-grid and microgrid solar power projects are making the “cumbersome” process of providing electricity access through grid extension alone obsolete.

Bangladesh’s microcredit purchasing program has seen a record four million home solar power systems installed.

Pay-As-You-Go (PAYG) buyer programs are driving a solar energy boom in the third-world, with investments in PAYG solar companies rising from USD 3 million in 2012, to USD 223 million in 2016.

The country share of total global renewable energy capacity is likely to increase further thanks to India’s solar energy goals and 48 developing countries committing to 100 percent renewable energy targets.

“The myth that renewable energy is too expensive, or that only a handful of rich countries continue to lead the way, has been discredited,” the report states.

“In many cases, renewable power is now the least-cost option.”

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