The International Energy Agency (IEA) rolled out its annual World Energy Outlook report with a bombshell. Solar power is expected to replace coal as the #1 source of energy production by 2025.
The backstory: In the last few years, governments and corporations flooded billions of dollars into the renewable energy space. Wind & solar energy have become cheaper than gas & oil as a result. It is now easier to manufacture and install solar panels than ever before.
By the numbers:
- The IEA thinks 80% of new power generation will come from renewables.
- We need to boost up investment in the energy grid by at least $460 billion in 2030 to hit our goals.
- The global economy will return to pre-covid levels in 2021, but 7% smaller over long term compared to 2019 projections.
Between the lines: China alone will account for 40% of global growth for electricity demand over the next ten years. Southeast Asia and Africa will see major demand increases for energy over the next few decades.
Meanwhile, IEA's report found that global CO2 emissions will not return to 2019 levels until 2027, due to energy mix with renewables and coal's big drop in 2020.
Zoom out: We need a structural transformation of the global energy sector to hit on sdg's (those UN-sanctioned green goals we keep talking about), and that requires a lot of clean capital stock.
The report makes it clear that low growth of emissions ≠ a climate change solution. It's a means to an end.
Bottom line: Solar will replace coal as king sometime this decade.