The evolution of the renewable energy sector is particularly dynamic. Data on the renewable energy share reported above are not yet avail-able beyond 2014, but data for the electricity sector points to further, subsequent renewable energy progress not yet captured here. (How-ever, the available data are not able to convey the wider picture for renewables in the larger heat and transport sectors.)
According to IRENA (2016a), global renew-able energy installed generation capacity grew by 8.0% annually in 2012–14, reaching 1,808 gigawatts (GW) at end-2014, and accelerated slightly growing by 8.6% in 2015 to 1,965 GW.
This is comparable to the IEA (2016a) figure of 1,969 GW of total cumulative renewable energy capacity installed globally at the end of 2015. Based on the dataset compiled from the IEA Data Center and UNSD (figure 5.11), renewable electricity generation reached 5,323 terawatt-hours (TWh) in 2014 — 22.3% of
global power generation — and the IEA (2016a) estimated that renewable generation further increased to 5,660 TWh in 2015.
According to the IEA (2016a), annual renewable electricity capacity growth in 2015 reached an all-time high of 153 GW, with record additions in onshore wind (63 GW) and solar PV (49 GW), together accounting for more than the total cumulative installed power capacity of Canada. For the first time, renewables in 2015 accounted for more than half of net annual additions to power capacity globally, and overtook coal in terms of global cumulative installed capacity.
This record deployment was spurred by further sharp decreases in renewable energy costs, in particular of solar PV and wind, fueling the virtuous circle of wider deployment bring-ing new cost reductions that in turn encourage further deployment, as well as by policy shifts geared toward smoother deployment of these technologies (box 5.3). The period 2012–14 saw the first successes of large-scale renew-able energy procurement using auctions that further continued and spread significantly in 2015 and 2016, bringing record-low prices for solar PV and wind and confirming the competi-tiveness of renewables with conventional alter-natives in several parts of the world. Auction results suggest that new onshore wind projects could be built in 2016 in a number of countries for $60–80 megawatt-hours (MWh), while new PV projects could be built at $60–100/
MWh, with the best case for wind and solar PV at around $40/MWh contracted in 2016 for FIGURE 5.5 Since 2010, global renewable energy consumption has grown faster than
global TFEC
Growth of TFEC and renewable energy consumption, and of renewable energy share indexed to 1990 level, 1990–2014
100 125 150 175
2014 2010
2005 2000
1995 1990
Total renewable energy consumption
Total final energy consumption
Renewable energy share in TFEC
Source: IEA and UNSD data.
FIGURE 5.6 Middle-income countries account for some two-thirds of renewable energy consumption globally
Share of income groups in global renewable energy consumption, 1990–2014
High income Upper middle income Lower middle income Low income 0
25 50 75 100
2014 2010
2005 2000
1995 1990
Source: GTF.
delivery in 2017 and 2018 (IEA 2016a; Dobrot-kova, Audinet, and Sargsyan 2017).
With the right regulatory and policy frame-works, further cost reductions for wind and solar, including offshore wind and concentrated solar power, are expected as deployment continues to scale up. IRENA (2016b) expects that by 2025 the global weighted average levelized cost of electricity of solar PV could fall by as much as
59% from 2015 levels, that of concentrated solar power by 43%, and onshore and offshore wind by 26% and 35%, respectively. Cost reductions are expected to be driven by increasing economies of scale, more competitive supply chains, and tech-nology improvements that should raise capacity factors and reduce installed costs — all against a backdrop of increasing competitive pressures that are expected to drive further innovation.
Investments in renewable energy, exclud-ing large hydropower (more than 50 MW), made good progress in 2013–14 (Frankfurt School–UNEP Centre and BNEF 2016), rising from 2012’s $257.3 billion to $273.0 billion in 2014 and a record $285.9 billion in 2015.
This record happened in a year in which prices of all fossil fuel commodities plum-meted; at the same time, it was accompanied FIGURE 5.7 High-impact countries already consume a great deal of renewable energy, but a significant part is still in traditional uses of biomass
20 largest energy-consuming economies: share of renewable energy consumption, 2014
0 25 50 75 100 125 150 175 200 225 250 275 300 325 350
0 25 50 75 100
High income Upper middle income Lower middle income Rest of the world Traditional uses Share of renewable energy in total final energy consumption (%)
Total final energy consumption (exajoules) Nigeria
Brazil Indonesia
Rest of the world
India China United States
Canada
Spain Italy Germany France Turkey Mexico Australia United Kingdom Japan Russian Federation Korea (Rep. of) Iran (Islamic Rep. of) Saudi Arabia
Source: IEA and UNSD data.
FIGURE 5.8 Majority of high-impact countries improved their share of renewables in TFEC in 2012–14
20 largest energy-consuming economies, 2012–14
–2 –1 0 1 2 3
Share (%) Annualized change (percentage points)
Italy
United King Spain dom German
y
Korea (R ep. of) Austr Japan alia Mexico Nigeria Franc
e
United Stat China es
Russian F eder
ation
Iran (Islamic R ep. of) Saudi Ar Canada abia Indonesia Turkey Brazil India
–25 0 25 50 75 100
Traditional renewable
energy share, 2014 Modern renewable energy share, 2014 Annualized change in
traditional renewable energy share Annualized change in modern renewable energy share Source: IEA and UNSD data.
86 • SUSTAINABLE ENERGY FOR ALL GLOBAL TRACKING FRAMEWORK Progress toward Sustainable Energy 2017
FIGURE 5.9 Some of the world’s largest energy consumers added the most renewable energy consumption
Annualized absolute growth of renewable energy consumption (EJ) in the 20 fast-moving countries, 2012–14
–0.1 0.0 0.1 0.2 0.3 0.4 0.5 0.6
Annualized change in traditional renewable energy Annualized change in modern renewable energy
Argentina Viet Nam Australia Nigeria
Bosnia and Herzegovina Nepal Gabon Tanzania Pakistan Korea (Rep. of)
Italy Ethiopia Germany Japan Indonesia United Kingdom Congo (IndDeiam. Rep. of) United States
China
Source: IEA and UNSD data.
FIGURE 5.10 The fastest percentage growth in renewable energy consumption was in countries starting from a small base
Annualized percentage growth of renewable energy consumption in the 20 fast-moving countries, 2012–14
–5 0 5 10 15
Annualized change in traditional renewable energy Annualized change in modern renewable energy
Italy Afghanistan Romania Luxembourg Slovenia Denmark Zimbabwe Georgia Lithuania Serbia Liberia Croatia Fiji Portugal Honduras Niger Gabon Kyrgyz Republic Uruguay
Bosnia and Herzegovina
Source: IEA and UNSD data.
by the aforementioned record amount of new renewable energy capacity added and the record relative importance of develop-ing countries in this growth. Figures from IEA (2016b) show total renewable energy investments in 2015 at $315 billion, of which
$288 billion was invested in the power sector, with the rest in renewable energy heat and transport (i.e., solar thermal heat-ing installations and liquid biofuels). Against 2011, although 2015’s inflation-adjusted renewable energy investments stayed essen-tially unchanged, cost declines meant that that year’s investments produced 40% more renewable energy capacity and 33% more
renewable energy power generation than in 2011 (IEA 2016b).
The sharp increase in renewable energy generation capacity and the other investments have created many jobs in the renewable energy industry. According to IRENA (2013;
2015), in 2012–14 the number of direct and indirect jobs in renewable energy, excluding large hydropower, increased from an estimated 5.7 million to 7.7 million, spurred by the rapid growth of solar power and the geographic expansion of renewable energy to more devel-oping countries. In 2015, against the backdrop of overall depressed energy sector employment, the number of renewable energy industry jobs
increased further to more than 8 million, with an additional 1.3 million estimated to be directly employed in large hydropower (IRENA 2016d).
Solar PV was the largest renewable energy employer in 2015 with 2.8 million jobs globally, up by 11% from 2014. Bioenergy remained a key employer, with biomass accounting for 822,000 jobs globally, biogas 382,000 jobs, and liquid biofuels 1.7 million jobs in 2015 — a 6% decline from 2014, owing to mechanization in some countries and low biofuel production in others. Additionally, IRENA (2016d) research indicates that renewable energy employment displays more gender parity than the broader energy sector.
FIGURE 5.11 Solar, wind, and hydropower generation also have been increasing rapidly in the last decade
Renewable electricity generation by technology, 1990–2014
0 1,000 2,000 3,000 4,000 5,000 6,000
2014 2010
2005 2000
1995 1990
Hydropower Wind Solid biomass Solar Geothermal Other
Renewable energy share (%) Terawatt-hours
0 4 8 12 16 20 24
Source: IEA and UNSD data.
88 • SUSTAINABLE ENERGY FOR ALL GLOBAL TRACKING FRAMEWORK Progress toward Sustainable Energy 2017
Box 5.3