Renewable energy in all sectors increased...

 

According to the International Energy Agency's (IEA) annual report, in the first quarter of 2020, global use of renewable energy in all sectors increased by about 1.5 percent compared to the first quarter of 2019.

Renewable electricity production has increased by almost 3%, mainly due to new wind projects and photovoltaic panels completed in the last year.

The share of renewable energy in global electricity production rose to almost 28% in the first quarter of 2020, up from 26% in the first quarter of 2019.

The increase in renewable energy was mainly due to the increase in the price of coal and gas, although these two sources still account for close to 60% of the global electricity supply.

Renewable energy is also resistant to the reduction in electricity demand, which is estimated to be 5% in 2020 due to priority access to networks and low operating costs.

The report predicts that total overall use of renewable energy will increase by around 1% in 2020.

Despite supply chain disruptions that have disrupted or slowed activity in several strategic locations (e.g.: China, which accounts for more than 70% of global solar panel production), social insulation measures, along with economic incentives in response to the economic slowdown, the expansion of solar, wind and hydro power is expected to help renewable electricity production increase by almost 5% by 2020.

Solar energy

It should be the fastest growing renewable source in 2020. Even if they are positive data, the IEA shows some prudence given the consumer profile - a fifth of all globally deployed capacity was made up of private individuals or SMEs that installed solar panels on their roofs - and the drastic cancellation or slowdown of the installation of panels as a result of contingency measures that prevent access to buildings.

Wind power

Wind power is expected to increase more in terms of absolute generation among all renewables. A windy start to the year from January to March in many regions and strong capacity additions last year are expected to give wind production a boost by 2020. In countries such as China or the US, the legal framework dictates that wind projects must be commissioned by the end of 2020 before they can have access to subsidies and production credits.

Water energy

Water energy production remains the biggest uncertainty in 2020, as it accounts for almost 60% of all renewable production globally and is dependent on precipitation and temperature patterns.

Biofuels

Biofuel consumption is expected to be substantially lower than in 2019.

Liquid biofuels are directly affected by the decrease in demand for fuel in road transport, as they are mixed with gasoline or diesel. Ethanol and biodiesel production facilities in Brazil, the European Union and the United States have reduced their exports as a result of declining domestic and international demand.

In addition to the decrease in demand, the drop in gasoline prices undermines the competitiveness of ethanol consumption, and to reduce losses, many companies are choosing to use this raw material for the manufacture of hand sanitist gel.

A faster or slower recovery would have limited effects on renewable electricity production by 2020, with year-on-year growth expected in most conditions. However, the impacts on the renewable energy industry could be very high, as the regions most affected by the Covid-19 crisis could see a sharp reduction in construction. The production of renewable electricity depends largely on the availability of natural resources, since the climate is the main determinant for water, wind and solar energy, which together account for about 90% of all renewable electricity production.