We’ve been doing this for decades, so we understand the ups and downs of the Renewable Energy industry. See IEA forecast below for solar, wind, Hydro and other renewable Energy companies. Our variable cost model (Video to the left) adjusts with market conditions, keeping you on track regardless of the economy.
The International Energy Agency (IEA) forecasts that additions of renewable electricity capacity will decline by 13% in 2020 compared with 2019, the first downward trend since 2000. This is a 20% downward revision compared to our previous forecast in which 2020 was due to be a record year for renewable power. The update reflects both possible delays in construction activity due to supply chain disruptions, lock-down measures and social‑distancing guidelines, and emerging financing challenges. The outlook also takes into account ongoing policy uncertainty and market developments such as the most recent auctions and newly financed projects before the Covid-19 outbreak.
However, the majority of these delayed projects are expected to come online in 2021 and lead to a rebound in capacity additions. As a result, 2021 is forecast to almost reach the level of renewable capacity additions of 2019. Despite the rebound, the combined growth in 2020 and 2021 is almost 10% lower compared to the previous IEA forecast.
The United States is expected to see an increase in capacity additions in 2020 and 2021 compared with last year. The expiry of tax credits in the United States in 2021 are resulting in project development rushes. However, the government is expected to provide some flexibility, allowing projects to be commissioned in 2021 without losing their incentives. As a result, the forecast expects that some wind and solar PV will be rescheduled and commissioned in 2021.