Renewable Energy Led Global Power Growth in 2021, Report Says

ABU DHABI, UAE – Despite a world of uncertainties, including a temporarily insurgent global pandemic, the renewable energy sector continued to grow and even gained momentum, according to a new study compiled by the International Renewable Energy Agency.

By the end of 2021, global renewable generation capacity amounted to 3,064 GW, increasing the stock of renewable power by 9.1%.

Although hydropower accounted for the largest share of the global total renewable generation capacity with 1,230 GW, IRENA’s Renewable Capacity Statistics 2022 shows that solar and wind continued to dominate new generating capacity. 

Together, both technologies contributed 88% to the share of all new renewable capacity in 2021. Solar capacity led with 19% increase, followed by wind energy, which increased its generating capacity by 13%.

“This continued progress is another testament of renewable energy’s resilience,” said  IRENA Director-General, Francesco La Camera in a written statement.

“Its strong performance last year represents more opportunities for countries to reap renewables’ multiple socio-economic benefits,” he said.

But La Camera also struck a cautious tone, warning that despite this encouraging global trend, “Our new World Energy Transitions Outlook shows that the energy transition is far from being fast or widespread enough to avert the dire consequences of climate change.”

To achieve climate goals, renewables must grow at a faster pace than energy demand, the report said. However, many countries have not reached this point yet, despite significantly increasing the use of renewables for electricity generation, according to the report.

Sixty percent of the new capacity in 2021 was added in Asia, resulting in a total of 1.46 TW of renewable capacity by 2021, IRENA found, China was the biggest contributor, adding 121 GW to the continent’s new capacity. Europe and North America—led by the United States —took second and third places respectively, with the former adding 39 GW, and the latter 38 GW. 

Renewable energy capacity grew by 3.9% in Africa and 3.3% in Central America and the Caribbean. Despite representing steady growth, the pace in both regions is much slower than the global average, indicating the need for stronger international cooperation to optimize electricity markets and drive massive investments in those regions.

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