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.