However, rising commodity prices are increasing the cost of producing and transporting wind turbines and solar panels, which could reduce investment in the short-term, the agency stated.
Some of the recent cost drops in the renewable sector have been canceled by price increases. If they continue next Year, the cost of wind energy will return to 2015 levels. Two to three years of price falls in solar power could be erased.
Heymi Bhar, the report’s lead author, said that the main obstacle to growth in renewables is not commodity prices. Permitting is the main obstacle to new wind power projects in the world. New policies are needed to expand solar power for consumers as well as industry.
“We need a gear change to meet net zero,” he said. “We have already seen a very important gear change in recent years but we need to move up another gear now. It is possible, and we have the tools. Governments need to show more ambition, not just on targets but on policy measures and plans.”
The agency predicted that the world’s renewable capacity will rise to more than 60% by 2026 than 2020 levels. This amount is equivalent to the total global power generation from fossil fuels and nuclear.
The IEA also said that China, the world’s biggest emitter, is driving the global switch to renewables. The country will reach 1200 gigawatts of total solar and wind power in 2026, four more years earlier than the target date.
India, the world’s third-biggest emitter, is set to double its new renewable electricity installations in the years to 2026, compared with the 2015-2020 period. The target – set out at Cop26 – of reaching net zero by 2070 is also regarded as too weak by many.
“The growth of renewables in India is outstanding, supporting the government’s newly announced goal of reaching 500GW of renewable power capacity by 2030 and highlighting India’s broader potential to accelerate its clean energy transition,” IEA executive director Fatih Birol said in a statement.
Governments must support renewable energy to accelerate the transition to clean electricity. This includes removing key barriers such as insufficient compensation, social acceptance issues, and inconsistent policy approaches.