Johannesburg - There has been a rising awareness worldwide that renewable energy and energy efficiency are critical not only for addressing climate change, but also for creating new economic opportunities and for providing energy access to the billions of people still living without modern energy services.
Over the past decade, and particularly in recent years, advances in renewable energy technologies, global increases in capacity, and rapid cost reductions have been due largely to policy support, which has attracted significant investment and has further driven down costs through economies of scale.
Renewable energy developments in 2014 continued to be shaped largely by government policy. Renewables faced challenges in some countries resulting from policy changes or uncertainties, such as the imposition of new taxes on renewable generation in Europe and the expiration of the US federal production tax credit.
However, the number of countries with renewable energy targets and policies increased again in 2014, and several jurisdictions made their existing targets more ambitious-including a rising number with 100% renewable energy or electricity targets. As of early 2015, at least 164 countries had renewable energy targets, and an estimated 145 countries had renewable energy support policies in place.
Policymakers continued to focus on adapting existing policies to keep pace with rapidly changing costs and circumstances. Recent trends include merging of components from different policy mechanisms; a growing linkage of support between the electricity, heat, and transport sectors; and development of innovative mechanisms to integrate rising shares of renewables into the energy mix.
The sector's growth continues to be hampered by more than $550 billion in annual subsidies for fossil fuel and nuclear energy, which perpetuate artificially low energy prices from those sources, encouraging waste and impeding competition from renewables.
Renewable energy capacity additions help to reduce CO2 emissions
In 2014, renewables made up an estimated 59% of net additions to global power capacity and represented far higher shares of capacity added in several countries around the world. By year's end, renewables comprised an estimated 27.7% of the world's power generating capacity. This was enough to supply an estimated 22.8% of global electricity demand.
Global power
With 135 gigawatts added, total installed renewable power capacity worldwide stood at 1712 gigawatts, up 8.5% from the year before.
Solar photovoltaic capacity has grown at the most phenomenal rate (up 68-fold, from 2.6 GW in 2004 to 177 GW in 2014), with strong growth also in wind power capacity (up almost 8-fold, from 48 GW in 2004 to 370 GW in 2014).
Heating accounted for about half of world energy consumption in 2014. Renewable energy supplied more than 25% of final energy use in the heating sector, of which over two-thirds was traditional biomass. Modern renewable energy supplied the remaining third, or about 8% of the world's total final energy use for heat production.
The increased uptake of renewables helped the world achieve a sustainable development milestone: for the first time in four decades, the world economy grew without a parallel rise in carbon dioxide emissions. Despite the world's annual 1.5% increase in energy consumption in recent years and 3% GDP growth last year, CO2 emissions were unchanged from 2013 levels: 32.3 billion metric tons. The landmark "decoupling" of economic and CO2 growth is due in large measure to China's increased use of renewable resources, and efforts by countries in the OECD to promote sustainable energy sources, according to the Renewables 2015 Global Status Report.
This is particularly encouraging, given the UN's major conference in December in Paris, where countries will announce and/or confirm actions to mitigate climate change, setting the stage for future investment in renewables and energy efficiency.
Renewable energy investment
New investment in renewable power and fuels (not including hydropower >50 MW) increased worldwide by 17% over 2013, to US$ 270.2 billion. Including large-scale hydropower, new investment in renewable power and fuels reached over US$ 301 billion.
Global new investment in renewable power capacity was more than twice that of investment in net fossil fuel power capacity, continuing the trend of renewables outpacing fossil fuels in net investment for the fifth year running.
Investment in developing countries was up 36% from the previous year to US$ 131.3 billion. Developing country investment came the closest ever to surpassing the investment total for developed economies, which reached US$ 138.9 billion in 2014, up only 3% from 2013. China accounted for 63% of developing country investment, while Chile, Indonesia, Kenya, Mexico, South Africa and Turkey each invested more than US$ 1 billion in renewable energy.
By dollars spent, the leading countries for investment were China, the United States, Japan, the United Kingdom and Germany. Leading countries for investments relative to per capita GDP were Burundi, Kenya, Honduras, Jordan, and Uruguay.
Renewable energy employment
Employment in the sector is growing fast as well. According to IRENA's assessment, an estimated 7.7 million people worldwide worked directly or indirectly in the renewable energy sector in 2014.
Energy access
More than one billion people, or 15% of humanity, still lack access to electricity. With installed capacity of roughly 147 GW, all of Africa has less power generation capacity than Germany. Distributed renewable energy technologies are improving the situation, providing essential and productive energy services in remote and rural areas. For example, off-grid solar PV (which attracted roughly $64 billion in 2014) has a significant and growing market presence.
It is clear that renewables have become a mainstream energy resource. The penetration and use of both variable and non-variable renewables are increasing, thereby contributing to diversification of the energy mix. Many renewable energy technologies have experienced rapid expansion; however, growth in renewables capacity as well as improvements in energy efficiency are below the rates necessary to achieve the Sustainable Energy for All (SE4ALL) goals of doubling the level of renewable energy, doubling the global rate of improvement in energy efficiency, and providing universal energy access by 2030.
In order to support increased energy access, REN21 has produced a SADC Renewable Energy and Energy Efficiency Status Report. This report provides an in-depth look at how renewables are progressing in the region. The publication is a key input to the South African Renewable Energy Conference (SAIREC) 2015, serving to demonstrate the immense potential of the region in providing clean, affordable energy services for all.
Arthouros Zervos is the chair of REN21. This article originally appeared in a supplement to The Star.
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