Global Renewable Energy Installed Capacity to Grow at 7.13% CAGR during 2021-2026

The global renewable energy installed capacity has been expected to reach approximately 4,391.18 GW by 2026, at a CAGR of 7.13 per cent during 2021-2026, which reached 2,713.60 GW in 2019, said the report from Research and Markets.

The report further mentioned that the outbreak of COVID-19 has a significant impact on the global renewable energy market, which has already been witnessing decreased investments by governments and private players due to global economic slowdown.

According to IEA, the investment is expected to plummet by 10 per cent y-o-y, in 2020, and the drop in investment has been a result of both the global economic slowdown and a decline in energy consumption. Factors, like favorable government policies and increasing adoption of renewable energy, with the declining price of solar panels and wind turbines and their installation cost, are likely to support the global renewable energy market. On the other hand, factors like the rising adoption of alternate clean power sources, such as gas-fired power plants and nuclear energy projects, are likely to hinder the market growth during the study period.

The report predicted that hydropower segment is expected to dominate the renewable energy market, with more than 48 per cent share of the total renewable energy installed capacity in 2019 achieved a record of 4,306 TWh. It is the largest contribution from a renewable energy source in history.

Technological advancements in Solar PV manufacturing and solving intermittency problems by using energy storage systems are likely to provide huge opportunities for the market studied.

Asia-Pacific is expected to be the fastest growing market during the forecast period, with majority of the demand coming from countries like China, India, etc. In the last decade, India’s net power generation capacity increased by 212 GW, of which about 42 per cent of this addition came from renewable energy sources, including large hydro.