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Renewable Energy Defies COVID-19 Downturn To Hit Record Growth in 2020


A new report from the International Energy Agency (IEA) had to be revised to include the almost incredible growth figures in the renewable energy sectors of major countries such as India, China and the US, even as their economies struggle. with COVID-19.

Spurred by long-term contracts, a slight 5% drop in global energy demand, priority access to power grids, and continued installation of new renewable power plants, global growth in renewable energy will reach 7% by the end of 2020.

To say that the period from January to October 2020 has been economically uncertain would be an understatement, but that has not stopped a clearly unattainable flow of investment in renewable energy installation around the world.

This period has seen a 15% increase in renewable energy auctioned when compared to the same period last year, and compared to 2019, the 2020 average share price of publicly traded solar companies is It has more than doubled.

Other measures of increase are a healthy 4% growth in new infrastructure installations and renewable plants, amounting to around 200 gigawatts in the US and China, while policy changes in the two nations have seen an increase. 30% in the production of wind and photovoltaic energy. Energy sources.

Forecasts for 2021 are even more optimistic. India and the EU will lead a big push that the IEA estimates will result in a record 10% expansion in renewables by the end of 2021.

How is this possible

Market prices can be driven as much by some kind of mob-minded collective belief as by the real economy. There was a period in early September, for example, when Tesla owned half of the entire market share in the auto sector, despite selling less than a million cars a year.

MORE: Electric vehicle sales in Europe have beaten even the most optimistic forecasts

The belief that Tesla shares never went down generated a lot of speculative money in the stock, making the company worth far more than it makes from making and selling vehicles.

“Supply chain disruptions and construction delays slowed the progress of renewable energy projects in the first six months of 2020,” read the IEA report. “However, plant construction and manufacturing activity picked up again rapidly, and logistical challenges have mostly been solved with the easing of cross-border restrictions since mid-May.”

“Despite the challenges that arose from the Covid crisis, the fundamentals of expanding renewables have not changed.”

Some of these fundamentals, if proven to be true, are astonishing and represent things that climate change activists could only dream of eight or ten years ago.

RELATED: In the wake of the lockdowns, coal and natural gas may appear to be the biggest victims of Covid-19

Already the cheapest forms of new energy installations, photovoltaic solar panels and wind farms, generate cheapest electricity costs ever, something South Australia was able to enjoy last month.

“Total installed photovoltaic wind and solar power capacity is on track to surpass natural gas in 2023 and coal in 2024. Solar PV alone accounts for 60% of all renewable capacity additions through 2025,” it predicts the IEA.

By 2025, coal could seem relatively worthless, as not only is renewable energy the cheapest in history, but it will be on its way to supplying most of the world.

Additionally, cost reductions are projected to triple market investment in renewables to more than 15% over the same period. This is spearheaded by investment companies like BlackRock, whose CEO Larry Fink, responsible for managing trillions of dollars in private equity, guides investment decisions now mainly on the capacity of companies for climate conscious strategies.

CHECK OUT: The World’s Most Valuable Company Promises to Be 100% Carbon Neutral for its Supply Chain and Product Life Cycle by 2030

There is practically nowhere a person can look and not see incredible prospects for renewable energy to take over the global energy market in the next decade.

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