According to a white paper by the international market research organization IHS Markit, the global annual increase in renewable energy power generation capacity will increase from 200 GW in 2020 to about 250 GW in 2022, and then to more than 300 GW by 2024.

This growth is mainly driven by the decline in the cost of wind and solar energy, as well as the successive announcements of net zero commitments by the state and enterprises.

IHS said that from 2015 to 2021, the average cost of solar photovoltaic (PV) systems fell by 54%, and solar energy has now become “the resource of choice in almost all places.” It will account for the major share of new renewable energy capacity added between 2021 and 2024.

Germany, Italy, Spain, South Korea and other countries have recently increased or plan to increase their solar energy development goals. On the other hand, onshore wind energy will achieve record installations in 2020, and the newly installed capacity will reach 120 GW. It is expected that 2021 will be another strong year. Developers in the United States and China will subsidize these markets. Scrambling to complete the project before it expires at the end of the year.

However, the growth of wind energy in Europe is hampered by the impact of land use in certain areas of the continent and the increased competitiveness of solar energy. The white paper said: “The cost-effectiveness of advanced turbines with a capacity of more than 5 MW and a load of 40% makes it an economical choice.”

Offshore wind power is ushering in a new round of development peaks. It is estimated that by 2021, the installed capacity of offshore wind power will reach 11 GW, twice the amount in 2020. China’s new installed capacity has grown rapidly, while Japan, the United Kingdom and Poland have launched higher offshore wind power targets. In the United States, the offshore wind power sector will once again enjoy strong support.

IHS Markit pointed out that the auction system and corporate buyers are two important factors that support the future growth of renewable energy. “New markets such as Ecuador and Myanmar held their first auctions in 2020, Vietnam is about to conduct its first solar tender, and newcomers such as the Philippines and Slovakia are likely to also conduct the first round of auctions in 2021.”

At the same time, the corporate power purchase agreement (CPPA) is on the rise. In the United States, new corporate offtake transactions are almost equivalent to all other renewable energy contracts signed in 2020.

In the energy industry, oil and gas companies, such as BP, Shell and Total, are also increasing investment in renewable energy. According to data from IHS Markit, oil and gas companies acquired 18 solar and wind energy acquisitions in 2019, 17 acquisitions by 2020, and only 9 acquisitions in 2018.