The global power sector is witnessing a gradual transition from conventional thermal power-generating sources toward clean energy technologies. The ambitious renewable energy targets set by countries across the globe points toward the growing share of renewables in the global energy mix in the next 20 years. The renewables share was 8.6% in the global energy mix in 2010 and is expected to increase to 22.5% in 2020 as per a recent thematic research report Renewable Energy by GlobalData.
As changing geopolitical interests in the Middle East change the oil and gas supply markets, renewable energy is turning out to be a bright area in the global energy economy. In the past couple of years, renewable market growth rates were higher when compared with conventional fuel market rates due to the rise in penetration of renewable energy and development of this market.
“The growth of renewable power has gained momentum in the past decade in various countries, helped by a supportive policy and regulatory framework, the reduced cost of renewable electricity generation attained due to technological advances, rising electricity demand, energy security, and environmental concerns,” says GlobalData analyst Sneha Susan. “Renewable energy is being utilised in power generation, transport, rural/off-grid power, and heating and cooling.”
Global cumulative installed renewable power capacity was 1,236 gigawatts (GW) in 2017. Renewable power installations in developing markets witnessed a significant growth in comparison with the developed markets of North America and Europe.
The total installed capacity of renewable energy sources was 437GW in 2010, with a share of 8.6% in the total global installed capacity. It grew more than 2.5x to 1,236GW in 2017 and had an installed capacity share of 18.2%. Wind power was the largest renewable source with a share of 44.2% of the global renewable power capacity in 2017 followed by solar PV (32.4%), small hydro (11.7%), and biopower (10.1%).
The figure below shows the cumulative installed renewable capacity share by power-generating source in 2010, 2017, and 2020, highlighting the largest contribution from renewable energy sources such as wind and solar power.
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