China and the US are driving the record increase. In these markets, wind and solar will grow by 30% as developers work to complete projects before key incentives expire. While all other parts of the energy sector such as oil, gas and coal, but also biofuels, are facing sharp declines because of the pandemic. Among the successes of 2020, or at least the first 10 months of it, is a 15% year-on-year increase in auctioned renewable power capacity, thanks to China, India and the EU. Also, shares of publicly listed renewable equipment manufacturers and project developers have been outperforming most major stock market indices and the overall energy sector.
In 2021 a 10% increase in renewable power capacity additions, this time led by the EU and India. Projects delayed by the pandemic will contribute to that, while growth is also expected in markets with strong project pipelines before COVID-19 struck. India is seen doubling its 2020 installations to become the largest contributor to the jump in new renewables capacity in 2021. Cost reductions and sustained policy support will continue to drive strong growth in renewable power over the next five years. In 2025, renewables are set to become the largest source of electricity generation worldwide, ending coal’s five decades as the top power provider.