IEA report: Renewable energy generation capacity overtakes fossil fuels

According to a new report by the International Energy Agency (IEA), renewable energy sources like wind and solar power, beat fossil fuels for the first time last year in terms of new power capacity added.

Renewables now represent 23% of global power generation, making 2015 a turning point for the renewable energy industry. That figure is expected to grow to 28% by the year 2021 largely due to market forces and a shift in global policy in favor of renewable energy, according to the report.

Half a million solar panels were installed every day last year around the world, according to the report. In China, there were two wind turbines set up every hour, the report said.

“We are witnessing a transformation of global power markets led by renewables,” says Fatih Birol, IEA executive director, in a press release. “However, even these higher expectations remain modest compared with the huge untapped potential of renewables.”

New rules that encourage the adoption of renewable power and phase out the highest polluting fossil fuel facilities, particularly coal-fired power plants, are continuously being introduced by policymakers all over the world.

In the US, the Clean Power Plan has led many states to phase out coal-fired power plants and replace them with natural gas or renewable power plants.

Chinese President Xi Jinping has called for his country to peak carbon dioxide emissions by 2030 and has pushed rapid installation of wind and solar power. China alone has driven 40% of the world’s growth in renewable power, according to the IEA report.

Thanks to the rapid decline in the cost of many renewable power sources in the recent years due to technology advances and increased competition, the transition to renewable energy would still likely occur even in the absence of regulations.

The cost of photovoltaic solar power—the most common type of solar panel found at most power plants and on homes—has fallen 70% over the past decade and is expected to continue to decline in the coming years.