Renewable energy refers to sustainable clean energy drawn through natural replenishments. This sector is the only source of energy which saw a rise in demand during the pandemic year.
The most popular form of renewable energy is hydro energy, mostly used as a power source. As of 2020 this industry is valued at $184 billion.
The Asia-Pacific region has the largest renewable energy ecosystem. Australia, Japan, China and India are key growth drivers. China takes the lead here. In 2019, China accounted for 40% of the total renewable energy capacity and by the end of 2020 jumped to 50%.
China generates more than 856 billion kilowatt hours of hydro energy annually, double that of Brazil. China is also the largest producer of wind energy. It has a capacity that is over 288 gigawatts.
The continued growth in this industry has resulted in several job opportunities. As of 2019 nearly 11.5 million people were engaged in this sector.
COVID-19 THUNDER BOOM
Renewable energy electricity supply grew by 2% in 2019, touching 28% in the first few months of the pandemic year.
The unprecedented pandemic resulted in several restrictions and constraints on markets across the world. However, the renewable energy market witnessed an unprecedented boom of 45% in solar and wind energy.
Global solar photovoltaics installations witnessed a 23% growth and wind capacity soared by a record 90%.
The United States, China and Vietnam had major policy deadlines to meet, thus ending up being responsible for this boom. China alone contributed to 80% of these installations.
“A massive expansion of clean electricity is crucial to enable the world to reach its net zero goals,” Fatih Birol, the head of the International Energy Agency said.
The global renewable energy market is expected to reach $226 billion in the last few months of 2021 with a growth rate of 23% and by the end of 2025 it is predicted to be worth $1.5 trillion. This sector is expected to generate 25 million jobs by 2030.
It is estimated that 280 gigawatt renewable energy would be functional by the end of 2022. Renewable energy is projected to make up at least 90% of total global power capacity increases in 2021 and 2022.
Solar photovoltaics expansion is projected to touch 145 gigawatts by the end of 2021 and 162 gigawatts in 2022. It will make up over 50% of total renewable energy expansion in 2021 and 70% by 2022.