1 September, Paris –The International Energy Agency (IEA) has warned of a slowdown in renewable energy deployment as a result of policy uncertainty and grid integration risks. The Agency’s forecasts are for 5.4% growth in 2014 (down from 6% in 2013). Annual investment is expected to drop to $230 billion by 2020, compared to $250 billion in 2013. If the forecasts are correct, then global climate change objectives are unlikely to be met.
Previous forecasts have been downgraded for all technologies, except for Solar PV, which is expected to benefit from reductions to the technology cost. Growth will largely be driven by less economically developed countries, which will account for around 70% of new power capacity from 2013 to 2020.
In the European Union, uncertainties remain regarding the ongoing discussions for a post-2020 renewable policy framework and the creation of a pan-European grid. The European Council will finalise the 2030 Energy Targets at its summit in October.
Click here to access the IEA Press Release or the study’s Executive Summary.