’Renewable energy produces 23.7% of global electricity production’

About 23.7 percent of electricity produced around the world comes from renewable energy sources, according to a report titled ‘Renewables 2016 Global Status’ an annual review of the state of renewable energy published by Renewable Energy Network (REN21).

According to REN21 in a statement obtained by BusinessDay “Renewable power generating capacity saw its largest increase ever, with an estimated 147 gigawatts (GW) added. Modern renewable heat capacity also continued to rise, and renewable use expanded in the transport sector. Distributed renewable energy is advancing rapidly to close the gap between the energy haves- and have-nots.”

Out of the 23.7 percent, energy sources such as hydro accounted for 16.6 percent, wind 3.7 percent, bio 2.0 percent, solar 1.2 percent, and others 0.4 percent.

Investments into renewable energy also peaked at USD286 billion. Led by China, investment in emerging and developing countries was ahead of developed countries for the first time. In 2015, the developing world, including China, India and Brazil, committed a total of USD156 billion (up 19 percent compared to 2014). China increased its investment by 17 percent to USD102.9 billion, accounting for 36 percent of the global total. Renewable energy investment also increased significantly in Chile, India, Mexico and South Africa.

Other developing countries investing more than USD500 million in renewable in 2015 included Honduras, Morocco, the Philippines, Pakistan, and Uruguay.

By contrast, renewable energy investment in developed countries as a group declined by 8 percent in 2015, to USD130 billion. The most significant decrease was seen in Europe (down 21 percent to USD 48.8 billion), despite the region’s record year of financing for offshore wind power (USD 17 billion, up 11 percent from 2014). In the United States, renewable energy investment (dominated largely by solar power) increased by 19 percent to USD44.1 billion, the country’s largest increase in dollar terms since 2011.

Solar power led the sector by far in terms of money committed during 2015, accounting for USD161 billion (up 12 percent over 2014), or more than 56 percent of total new investment in renewable power and fuels. Wind power followed with USD109.6 billion, or 38.3 percent of the total (up 4 percent). Investment in solar photovoltaics (PV) for off-grid power in developing countries also continued to grow.

Countries that generated the highest electricity using renewable energy include China (199GW), United States of America (122GW), Germany (92 GW), Japan (43GW), India (36GW), Italy (33GW), and Spain (32).

Employment in the renewable energy sector increased in 2015 to an estimated 8.1 million jobs (direct and indirect). Solar PV and biofuels provided the largest numbers of renewable energy jobs, with estimations approaching 2.8 million and 1.7 million jobs respectively.

REN21 said that the results were driven by several factors.

“First and foremost, renewables are now cost competitive with fossil fuels in many markets. In addition, government leadership continues to play a key role in driving growth of renewable, particularly wind and solar, in the power sector. As of early 2016, 173 countries had renewable energy targets in place and 146 countries had support policies. Cities, communities and companies are leading the rapidly expanding “100 per cent renewable” movement, playing a vital role in advancing the global energy transition,” stated the statement.

Speaking about the report, Arthouros Zervos, Chair of REN21 said “The renewable train is barrelling down the tracks, but it’s running on 20^th century infrastructure – a system based on outdated thinking where conventional baseload is generated by fossil fuels and nuclear power.

“To accelerate the transition to a healthier, more secure and climate-safe future, we need to build the equivalent of a high-speed rail network – a smarter, more flexible system that maximizes the use of variable sources of renewable energy, and accommodates decentralized and community-based generation,” he said.

The Renewables 2016 Global Status report presents developments and trends through the end of 2015, as well as observed trends from early 2016 where available.