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Renewable Energy Expected to Make a Rise in 2022
The International Energy Agency (IEA) is projecting continued significant growth in renewable energy as a result of the world’s growing concerns over climate change and energy security. This concern has been further streamlined by the impact of the pandemic and the continuing war in Ukraine. The repercussions of these events have resulted in inflation reaching a multiple-decade high resulting in soaring energy prices. This is leaving policymakers worldwide craving a cheaper and more reliable energy source which has resulted in turning toward solar, wind, and hydropower as the answers. Global capacities expect a 25-gigawatt rise in renewable energy this year which would be the equivalent of Germany’s entire demand for electricity as a country. Solar power is on track to account for just over 60 percent of the global renewable energy growth followed only behind by wind and hydropower.
The only drawback up to this point is that the supply chain issues and the high costs of solar panels continue to mitigate and be a roadblock to this expected growth. The cost of solar panels also does not appear to be going down any time soon as a high commodity and freight prices will remain stagnant all the way through this year into next. On top of this, since there are currently no stronger policies related to renewable resources, the growth in renewable energy is set to reach a plateau next year as the progress in the solar power industry is offset by a 40% decline in hydropower and no change in the wind power industry. Yet renewable resources remain competitive as the price of fossil fuels is still rising at a much faster rate.
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