The International Energy Forum (IEF) has been at the forefront of renewable energy dialogue facilitating conversations on renewable innovation, collaboration, and policymaking for the past several years. Even during the COVID-19 pandemic, renewable energy has shown greater resilience due to its power sector integration, which has been relatively insulated from the demand shock felt in other energy sectors.
Renewable energy such as solar and wind are gradually shifting the global energy mix, and advances in battery storage and green hydrogen production has real implications for renewables, particularly in the power sector. As innovation and technology continue to make inroads, costs continue to decrease allowing renewables to achieve economies of scale. Combined with net-zero policies to achieve climate goals, renewables are seeing greater adoption in several countries.
However, renewable electricity capacity will decline by 13 percent in 2020 compared with 2019 due to supply chain disruptions and a lack of investor appetite due to large infrastructure costs. Furthermore, electricity only comprises around 20 percent of global energy consumption, and much more work needs to be done to enhance renewable capacity in other areas.
For now, renewable energy offers a supplementary role that works in tandem with clean fossil fuel technologies and the growing potential of hydrogen. Continued growth will remain dependent on government policies, stimulus packages tied to clean technology investment, innovative financial arrangements for developers, and a continued willingness by governments to move towards smart and orderly energy transitions.