If renewable energy transition was doing great pre-pandemic, it will be on a roll as COVID-19 eases out. Word has it, global energy leaders are willing to try every trick in the book for a green economic recovery.
As nature’s plans unfolded in 2020, it became clear that we needed a more harmonious relationship with mother earth. Enter 2021. Countries around the world are pledging to make renewable energy transition a top priority in their economic agendas.
Countries on a spectrum of economic development like Europe, Pakistan, and India have committed to resetting their operations with healthier investments.
Renewable Energy Transition In Fossil Fuel Led Markets
According to the IEA, overall demand for energy declined by 6% in 2020, and energy-related emissions reduced by another 8%. The report highlights some interesting findings about renewable energy transition and usage. Within 10 weeks of the global lockdown, India increased its renewable energy usage by 45%, followed by the USA’s 40%, and China’s 20%.
This monumental change in the traditional energy sector has come about for a number of reasons. As we know, all of which were highlighted by COVID-19.
First, there has been considerable innovation in cleantech. From incremental changes in the technology powering wind turbines to the creative layouts of hybrid wind and solar farms – innovation has bred trust and motivation among the masses.
And because of this trend, renewable sources of power are now the cheapest in two-thirds of the world, according to Bloomberg New Energy Finance. Solar, in particular, has seen a 82% decline in price in the past 10 years.
Therefore, green energy has now become a preferred source of investment for energy investors. It is attracting billions of dollars in an industry that was previously dominated by fossil fuels. Thus, breeding renewable energy transition at a much faster rate.