The rapid spread of renewable energy is a bright spot in the global energy transition towards a low carbon economy. Despite lower fossil fuel prices, renewable power expanded at its fastest-ever rate in 2015, thanks to supportive government policies and sharp cost reductions. Renewables accounted for more than half of the world’s additional electricity capacity last year. Yet, even with this remarkable progress, there are questions about whether renewables are on track to reach targets set by the Paris Agreement.
This report examines these questions in detail, looking closely at how renewable energy in the power, heat and transportation sectors will evolve over the next five years in the face of lower fossil fuel prices. It explores recent renewable deployment and policy trends across different regions and countries, particularly as costs for wind and solar PV continue to fall.
The Medium-Term Renewable Energy Market Report 2016 also assesses the potential impact of enhanced policy action for the electricity sector under its “accelerated case”, which would position the world firmly on a path to a more sustainable and secure energy system.