The global energy crisis is driving a sharp acceleration in installations of renewable power, with total capacity growth worldwide set to almost double in the next five years, overtaking coal as the largest source of electricity generation along the way the IEA says in a new report.

Energy security concerns caused by Russia’s invasion of Ukraine have motivated countries to increasingly turn to renewables such as solar and wind to reduce reliance on imported fossil fuels, whose prices have spiked dramatically.

Global renewable power capacity is now expected to grow by 2,400GW over the 2022-2027 period, an amount equal to the entire power capacity of China today, according to Renewables 2022, the latest edition of the IEA’s annual report on the sector.

This increase is 30 per cent higher than the amount of growth that was forecast just a year ago, highlighting how quickly governments have thrown additional policy weight behind renewables. The report finds that renewables are set to account for over 90 per cent of global electricity expansion over the next five years, overtaking coal to become the largest source of global electricity by early 2025.

Utility-scale solar PV and onshore wind are the cheapest options for new electricity generation in a significant majority of countries worldwide. Global solar PV capacity is set to almost triple over the 2022-2027 period, surpassing coal and becoming the largest source of power capacity in the world. The report also forecasts an acceleration of installations of solar panels on residential and commercial rooftops, which help consumers reduce energy bills. Global wind capacity almost doubles in the forecast period, with offshore projects accounting for one-fifth of the growth. Together, wind and solar will account for over 90 per cent of the renewable power capacity that is added over the next five years.

The report sees emerging signs of diversification in global PV supply chains, with new policies in the US and India expected to boost investment in solar manufacturing by as much as $25bn over the 2022-2027 period. While China remains the dominant player, its share in global manufacturing capacity could decrease from 90 per cent today to 75 per cent by 2027.

Total global biofuel demand is set to expand by 22 per cent over the 2022-2027 period. The US, Canada, Brazil, Indonesia and India make up 80 per cent of the expected global expansion in biofuel use, with all five countries having comprehensive policies to support growth.

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