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The EU is set to add 60 GW of solar photovoltaic (PV) and wind capacity this year, further reducing its reliance on fossil fuels and supplies from Russia, the International Energy Agency (IEA) said on Thursday.
By 2024, the IEA expects wind and solar PV to make up more than 40% of annual electricity generation in several countries, including Spain, Germany and Ireland, it added in its latest report on renewables.
In the period 2021-2022, the EU had added almost 90 GW of solar PV and wind capacity, which helped to displace an estimated 230 TWh, or almost 10% of fossil fuel generation.
An additional 60 GW this year would increase fossil fuel displacement to almost 20%, the IEA said.
In terms of prices, average wholesale electricity levels in the EU would have been 8% higher last year without the additional renewables capacity. Overall, newly installed solar PV and wind assets saved EU consumers an estimated EUR 100 bn on their energy bills during the period 2021-2023.
Meanwhile, global renewables output was set to soar by 107 GW to more than 440 GW this year, driven by growing policy momentum, higher fossil fuel prices and energy security concerns.
The additional capacity would mark the largest absolute increase ever, the IEA said.
In the EU in particular, policy impetus, such as speeding up grid connections, or improving auction conditions, will be crucial to the deployment of renewable assets as the bloc continues to transition away from fossil fuels and replace lost pipeline gas from Russia following its invasion of Ukraine.
“Solar and wind are leading the rapid expansion of the new global energy economy,” Fatih Birol, the IEA’s executive director said.
“This year, the world is set to add a record-breaking amount of renewables to electricity systems – more than the total power capacity of Germany and Spain combined. The global energy crisis has shown renewables are critical for making energy supplies not just cleaner but also more secure and affordable – and governments are responding with efforts to deploy them faster.”
