RENEWABLES 2021

GLOBAL STATUS REPORT

2021
 REN2 1 MEMBERS
INDUSTRY ASSOCIATIONS INTER-GOVERNMENTAL NGOS
Africa Minigrid Developers Association ORGANISATIONS Association Africaine pour
(AMDA) Asia Pacific Energy Research Centre l'Electrification Rurale (Club-ER)
Alliance for Rural Electrification (ARE) (APERC) CLASP
American Council on Renewable Asian Development Bank (ADB) Clean Cooking Alliance (CCA)
Energy (ACORE) ECOWAS Centre for Renewable Climate Action Network International
Associação Portuguesa de Energias Energy and Energy Efficiency (CAN-I)
Renováveis (APREN) (ECREEE) Coalition de Ciudades Capitales
Association for Renewable Energy of European Commission (EC) de las Americas (CC35)
Lusophone Countries (ALER) Energy Cities
Global Environment Facility (GEF)
Chinese Renewable Energy Industries Euroheat & Power (EHP)
International Energy Agency (IEA)
Association (CREIA)
International Renewable Energy Fundación Energías Renovables (FER)
Clean Energy Council (CEC)
Agency (IRENA) Global 100% Renewable Energy
European Renewable Energies
Federation (EREF) Islamic Development Bank (IsDB) Global Forum on Sustainable
Regional Center for Renewable Energy (GFSE)
Global Off-Grid Lighting Association
(GOGLA) Energy and Energy Efficiency Global Women's Network for the
(RCREEE) Energy Transition (GWNET)
Global Solar Council (GSC)
Global Wind Energy Council (GWEC) United Nations Development Greenpeace International
Indian Renewable Energy Federation Programme (UNDP) ICLEI – Local Governments for
(IREF) United Nations Environment Sustainability
International Geothermal Association Programme (UNEP) Institute for Sustainable Energy
(IGA) United Nations Industrial Development Policies (ISEP)
International Hydropower Association Organization (UNIDO) International Electrotechnical
(IHA) World Bank (WB) Commission (IEC)
Renewable Energy Solutions for Africa Jeunes Volontaires pour
(RES4Africa) Foundation l'Environnement (JVE)
Solar Power Europe Mali Folkecenter (MFC)
World Bioenergy Association (WBA) Power for All
World Wind Energy Association
Renewable Energy and Energy
(WWEA) Efficiency Partnership (REEEP)
Renewable Energy Institute (REI)
Renewables Grid Initiative (RGI)
SCIENCE AND ACADEMIA GOVERNMENTS SLOCAT Partnership for Sustainable
AEE – Institute for Sustainable Afghanistan Low Carbon Transport
Technologies (AEE INTEC) Austria Solar Cookers International (SCI)
Council on Energy, Environment and Sustainable Energy for All (SEforALL)
Brazil
Water (CEEW) World Council for Renewable
Denmark
Fundación Bariloche (FB) Energy (WCRE)
Dominican Republic
International Institute for Applied World Future Council (WFC)
Germany World Resources Institute (WRI)
Systems Analysis (IIASA)
India World Wildlife Fund (WWF)
International Solar Energy Society (ISES)
Mexico
National Renewable Energy
Laboratory (NREL) Norway
National Research University Higher Republic of Korea MEMBERS AT LARGE
School of Economics, Russia (HSE) South Africa
Michael Eckhart
South African National Energy Spain
Mohamed El-Ashry
Development Institute (SANEDI) United Arab Emirates
David Hales
The Energy and Resources United States of America
Institute (TERI) Kirsty Hamilton
Peter Rae

PRESIDENT EXECUTIVE DIRECTOR

Arthouros Zervos Rana Adib
National Technical University of Athens (NTUA) REN21

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RENEWABLE ENERGY
POLICY NETWORK
FOR THE 21 st CENTURY
REN21 is the only global renewable energy community of actors
from science, governments, NGOs and industry. We provide up-to-date
and peer-reviewed facts, figures and analysis of global developments
in technology, policies and markets. Our goal: enable decision-makers
to make the shift to renewable energy happen – now.

The most successful organisms, such as an octopus, have a decentralised

intelligence and "sensing" function. This increases responsiveness to a
changing environment. REN21 incarnates this approach.

Our more than 2,000 community members guide our co-operative work.
They reflect the vast array of backgrounds and perspectives in society.
As REN21’s eyes and ears, they collect information and share intelligence,
by sending input and feedback. REN21 takes all this information to better
understand the current thinking around renewables and change norms.
We also use this information to connect and grow the energy debate with
non-energy players.

Our annual publications, the Renewables Global Status Report and

the Renewables in Cities Global Status Report, are probably the world’s
most comprehensive crowdsourced reports on renewables. It is a truly
collaborative process of co-authoring, data collection and peer reviewing.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

GSR 2021
TABLE OF CONTENTS

03 MARKET AND
Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 INDUSTRY TRENDS 88
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Bioenergy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

01
Geothermal Power and Heat . . . . . . . . . . . . . . . . . . . . . . . 100

GLOBAL OVERVIEW 28
Hydropower . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Ocean Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Renewables in 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Solar Photovoltaics (PV) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Ongoing Challenges Towards a Concentrating Solar Thermal Power (CSP) . . . . . . . . . . 133
Renewables-Based World . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Solar Thermal Heating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Wind Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

04 DISTRIBUTED RENEWABLES
FOR ENERGY ACCESS 162

02 POLICY LANDSCAPE 58
Overview of Energy Access . . . . . . . . . . . . . . . . . . . . . . . . . 165
Technologies and Markets . . . . . . . . . . . . . . . . . . . . . . . . . . 167
Business Model Innovations . . . . . . . . . . . . . . . . . . . . . . . . 172
Renewable Energy and Climate Change Policy . . . . . . 63
Financing for Renewables-Based Energy Access . . . . 173
Heating and Cooling in Buildings . . . . . . . . . . . . . . . . . . . 69
National Policy Developments . . . . . . . . . . . . . . . . . . . . . . 178
Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Systems Integration of Variable Renewable Electricity . . 83

REPORT CITATION
REN21. 2021.
Renewables 2021 Global Status Report
(Paris: REN21 Secretariat).
ISBN 978-3-948393-03-8

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 ENERGY EFFICIENCY,

05 INVESTMENT FLOWS 182 07 RENEWABLES AND

DECARBONISATION 216

Investment in Renewable Energy Capacity . . . . . . . . . . 183 Renewable Energy and Carbon Intensity . . . . . . . . . . . . 217
Deploying Renewable Energy Through Decarbonisation of End-Use Sectors . . . . . . . . . . . . . . . . 221
Climate Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
Divestment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193

FEATURE:

ENERGY SYSTEMS 08 BUSINESS DEMAND

FOR RENEWABLES 228

06 INTEGRATION AND
ENABLING TECHNOLOGIES 196 Drivers of Business Demand for Renewable Energy . . . 230
Renewable Electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
Integration of Renewables in the Power Sector . . . . . . 199 Renewable Heating and Cooling in Industry . . . . . . . . . 234
Advances in the Integration of Renewables in Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
Renewables in Transport and Heating . . . . . . . . . . . . . . . 203
Enabling Technologies for Systems Integration . . . . . . 204
Heat Pumps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
Electric Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208
Energy Storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211

DISCLAIMER:
REN21 releases issue papers and reports to emphasise the importance Energy Units and Conversion Factors . . . . . . . . . . . . . . . 240
of renewable energy and to generate discussion on issues central to the
promotion of renewable energy. While REN21 papers and reports have Data Collection and Validation . . . . . . . . . . . . . . . . . . . . . . 241
benefited from the considerations and input from the REN21 community,
they do not necessarily represent a consensus among network participants Methodological Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242
on any given point. Although the information given in this report is the best
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
available to the authors at the time, REN21 and its participants cannot be
held liable for its accuracy and correctness. List of Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
The designations employed and the presentation of material in the maps
in this report do not imply the expression of any opinion whatsoever Photo Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254
concerning the legal status of any region, country, territory, city or area or of
its authorities, and is without prejudice to the status of or sovereignty over
any territory, to the delimitation of international frontiers or boundaries and
to the name of any territory, city or area. Endnotes: see full version online at www.ren21.net/gsr

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 RENEWABLES 2021 GLOBAL STATUS REPORT

GSR 2021
TABLE OF CONTENTS

SIDEBARS TABLES
Sidebar 1. Oil and Gas Suppliers and the Renewable Table 1. Renewable Energy Indicators 2020 . . . . . . . . . . 40
Energy Transition . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Table 2. Top Five Countries 2020 . . . . . . . . . . . . . . . . . . . . 41
Sidebar 2. Impacts of COVID-19 on Renewable
Table 3. COVID-19’s Impacts on Employment in Segments
Energy-Related Jobs in 2020 . . . . . . . . . . . . . . . . 56
of the Renewable Energy Supply Chain . . . . . . . 56
Sidebar 3. Renewable Energy in COVID-19 Stimulus
Table 4. New Net Zero Emission and Carbon-Neutral
Packages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Targets Set by Countries/Regions in 2020 . . . . . 65
Sidebar 4. “Subsidy Swaps” as a Means to Shift
Table 5. Targets and Policies for Renewable
Financial Support Towards Renewables . . . . . . 67
Hydrogen, 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Sidebar 5. Policy Support for Renewable Hydrogen . . . . . . 72
Table 6. Renewable Energy Targets and Policies, 2020 . . . 84
Sidebar 6. Renewable Electricity Generation Costs
Table 7. Distributed Renewables Policies for Electricity
in 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
Access, Selected Countries, 2020 . . . . . . . . . . . 180
Sidebar 7. COVID-19 and Energy Demand in
Table 8. Distributed Renewables Policies for Clean
Buildings, Industry and Transport . . . . . . . . . . . 220
Cooking Access, Selected Countries, 2020 . . . . 181
Sidebar 8. Decarbonisation Through Monitoring,
Reporting and Verification Systems . . . . . . . . . 222

BOXES
Box 1. Renewable Hydrogen in the GSR . . . . . . . . . . . . . 31
Box 2. Renewable Energy in Cities . . . . . . . . . . . . . . . . . . . 34
Box 3. Sustainability in the GSR . . . . . . . . . . . . . . . . . . . . . . 35
Box 4. Trade Policy, Local Content Requirements
and Renewables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Box 5. Utility-Led Activity to Support Renewables . . . . . 78
Box 6. Bioenergy and the Bioeconomy . . . . . . . . . . . . . . . 97
Box 7. Small-Scale Wind Power . . . . . . . . . . . . . . . . . . . . . 159
Box 8. Energy Access, Health and COVID-19 . . . . . . . . 165
Box 9. Organisations Leveraging Business
Demand for Renewables . . . . . . . . . . . . . . . . . . . . . 231
Comments and questions are
welcome and can be sent to Box 10. Amazon’s Sourcing of Renewable Electricity . . . 233
[email protected] Box 11. Elpitiya Plantations’ Sourcing of
Renewable Heat . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235

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 FIGURES
Figure 1. Renewable Energy Shares and Targets, G20 Figure 32. Solar Water Heating Collector Additions, Top 20
Countries, 2019 and 2020 . . . . . . . . . . . . . . . . . . . . . . . . 32 Countries for Capacity Added, 2020 . . . . . . . . . . . . . 139
Figure 2. Estimated Renewable Energy Share of Total Figure 33. Solar District Heating, Global Annual Additions
Final Energy Consumption, 2009 and 2019 . . . . . . . 33 and Total Area in Operation, 2010-2020 . . . . . . . . . 142
Figure 3. Estimated Growth in Modern Renewables Figure 34. Wind Power Global Capacity and Annual
as Share of Total Final Energy Consumption Additions, 2010-2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
Between 2009 and 2019 . . . . . . . . . . . . . . . . . . . . . . . . . 36 Figure 35. Wind Power Capacity and Additions, Top 10
Figure 4. Renewable Share of Total Final Energy Countries for Capacity Added, 2020 . . . . . . . . . . . . . 147
Consumption, by Final Energy Use, 2018 . . . . . . . . . 37 Figure 36. Wind Power Offshore Global Capacity by
Figure 5. Spending on Renewable Energy versus Total Region, 2010-2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
Capital Expenditure, Selected Oil and Gas Figure 37. Global Levelised Costs of Electricity from Newly
Companies, 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Commissioned Utility-Scale Renewable Power
Generation Technologies, 2010 and 2020 . . . . . . . . 161
Figure 6. Renewable Energy Contribution to Heating in
Figure 38. Top 7 Countries with the Highest Electricity
Buildings, by Technology, 2009 and 2019 . . . . . . . . . 43
Access Rate from Distributed Renewable
Figure 7. Annual Additions of Renewable Power Capacity, Energy Solutions, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . 164
by Technology and Total, 2014-2020 . . . . . . . . . . . . . . 52
Figure 39. Population with Access to Modern Energy
Figure 8. Shares of Net Annual Additions in Power Cooking Services, by Region, 2020 . . . . . . . . . . . . . . 166
Generating Capacity, 2010-2020 . . . . . . . . . . . . . . . . . 53 Figure 40. Per Capita Production of Biogas for Cooking,
Figure 9. Global Electricity Production by Source, and Selected Countries, 2015 and 2020 . . . . . . . . . . . . . . 168
Share of Renewables, 2010-2020 . . . . . . . . . . . . . . . . . 54 Figure 41. Sales Volumes of Affiliated Off-Grid Solar
Figure 10. Number of Countries with Renewable Energy Systems, Selected Regions, 2019 and 2020 . . . . . . 170
Regulatory Policies, 2010-2020 . . . . . . . . . . . . . . . . . . . 60 Figure 42. Shares of Installed Mini-Grids by Technology,
Figure 11. Status of Countries in Meeting Their 2020 March 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
Renewable Energy Targets and Setting Figure 43. Annual Commitments to Off-Grid Renewable
New Ones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Energy, by Type of Investor, 2013-2019 . . . . . . . . . . . 174
Figure 12. Countries with Selected Climate Change Figure 44. Shares of Off-Grid Solar Financing, by Type
Policies, Early 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 of Funding, 2012-2020 . . . . . . . . . . . . . . . . . . . . . . . . . . 175
Figure 13. Sectoral Coverage of National Renewable Figure 45. Key Improvements in RISE Indicators,
Heating and Cooling Financial and Regulatory Selected Regions, 2010, 2015 and 2019 . . . . . . . . . . 178
Policies, as of End-2020 . . . . . . . . . . . . . . . . . . . . . . . . . 70 Figure 46. Global Investment in Renewable Power Capacity
Figure 14. National and Sub-National Renewable in Developed, Emerging and Developing
Transport Mandates, End-2020 . . . . . . . . . . . . . . . . . . 74 Countries, 2010-2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
Figure 15. Targets for Renewable Power and Electric Figure 47. Global Investment in Renewable Energy
Vehicles, as of End-2020 . . . . . . . . . . . . . . . . . . . . . . . . . 76 Capacity, by Country and Region, 2010-2020 . . . . 186
Figure 48. Global Investment in Renewable Energy Capacity,
Figure 16. Renewable Energy Feed-in Tariffs and
by Technology, 2010, 2019 and 2020 . . . . . . . . . . . . . 188
Tenders, 2010-2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Figure 49. Energy Investments in COVID-19 Recovery
Figure 17. Estimated Shares of Bioenergy in Total Final
Packages of 31 Countries, January 2020
Energy Consumption, Overall and by End-Use
to April 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
Sector, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Figure 50. Share of Renewable Energy Funding in
Figure 18. Global Bioenergy Use for Heating, Climate Mitigation Finance from Multilateral
by End-Use, 2009-2019 . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Development Banks, 2015-2019 . . . . . . . . . . . . . . . . . 192
Figure 19. Global Production of Ethanol, Biodiesel and HVO/ Figure 51. Estimated Global Investment in New Power
HEFA Fuel, by Energy Content, 2010-2020 . . . . . . . . 93 Capacity, by Type, 2020 . . . . . . . . . . . . . . . . . . . . . . . . . 195
Figure 20. Global Bioelectricity Generation, by Region, Figure 52. Share of Electricity Generation from Variable
2010-2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Renewable Energy, Top Countries, 2020 . . . . . . . . . 199
Figure 21. Geothermal Power Capacity and Additions, Figure 53. Transmission Projects to Integrate Higher
Top 10 Countries and Rest of World, 2020 . . . . . . . 100 Shares of Renewables . . . . . . . . . . . . . . . . . . . . . . . . . 202
Figure 22. Geothermal Direct Use, Estimates for Figure 54. Coupling of the Power, Thermal and Transport
Top 10 Countries and Rest of World, 2020 . . . . . . . 103 Sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204
Figure 23. Hydropower Global Capacity, Shares of Figure 55. Electric Car Global Sales, Top Countries and
Top 10 Countries and Rest of World, 2020 . . . . . . . 106 Rest of World, 2015-2020 . . . . . . . . . . . . . . . . . . . . . . 208
Figure 24. Hydropower Capacity and Additions, Figure 56. Share of Global Energy Storage Installed
Top 10 Countries for Capacity Added, 2020 . . . . . . 107 Capacity, by Technology, 2019 and 2020 . . . . . . . . . 211
Figure 25. Solar PV Global Capacity and Annual Additions, Figure 57. Estimated Impact of Renewables and Energy
2010-2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Efficiency on Global Carbon Intensity, 2013-2018 . . . 219
Figure 26. Solar PV Global Capacity, by Country and Figure 58. Change in Carbon Intensity of Final Energy
Consumption and Share of Modern Renewables,
Region, 2010-2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Selected Countries, 2008-2018 . . . . . . . . . . . . . . . . . . 221
Figure 27. Solar PV Capacity and Additions, Top 10
Figure 59. Number of Countries with Carbon Emission
Countries for Capacity Added, 2020 . . . . . . . . . . . . . 120
Monitoring, Reporting and Verification Policies,
Figure 28. Solar PV Global Capacity Additions, Shares of by Region, 2010-2019 . . . . . . . . . . . . . . . . . . . . . . . . . . 223
Top 10 Countries and Rest of World, 2020 . . . . . . . 122 Figure 60. Carbon Intensity and Share of Electricity in
Figure 29. Concentrating Solar Thermal Power Global Industry, Selected Countries, 2008-2018 . . . . . . . . 225
Capacity, by Country and Region, 2010-2020 . . . . 134 Figure 61. Indexed Carbon Intensity and Kilometres
Figure 30. Thermal Energy Storage Global Capacity and Travelled, Passenger Vehicles in Selected
Annual Additions, 2010-2020 . . . . . . . . . . . . . . . . . . . . 135 Countries, 2008-2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
Figure 31. Solar Water Heating Collectors Global Capacity, Figure 62. Corporate Renewable Energy PPAs, Global
2010-2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 Capacity and Annual Additions, 2015-2020 . . . . . 232

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 RENEWABLES 2021 GLOBAL STATUS REPORT

REN21 is committed to mobilising global action to meet

the United Nations Sustainable Development Goals.

This report was commissioned by REN21 and produced in

collaboration with a global network of research partners.
Financing was provided by the German Federal Ministry for
Economic Cooperation and Development (BMZ), the German
Federal Ministry for Economic Affairs and Energy (BMWi) and
the UN Environment Programme. A large share of the research
for this report was conducted on a voluntary basis.

8
ACKNOWLEDGEMENTS
Note: Some individuals have contributed in more than
one way to this report. To avoid listing contributors
REN21 RESEARCH DIRECTION TEAM multiple times, they have been added to the group where
Hannah E. Murdock they provided the most information. In most cases, the
Duncan Gibb lead country, regional and topical contributors also
Thomas André participated in the Global Status Report (GSR) review
and validation process.
SPECIAL ADVISORS
Janet L. Sawin (Sunna Research)
Adam Brown
SIDEBAR AUTHORS
Lea Ranalder Daron Bedrosyan (Energy Sector Management
Assistance Program – ESMAP)
CHAPTER AUTHORS Richard Bridle (International Institute for
Thomas André (REN21) Sustainable Development – IISD)
Adam Brown
Rabia Ferroukhi (International Renewable
Ute Collier (Green Energy Insights) Energy Agency – IRENA)
Christopher Dent (Edge Hill University)
Celia Garcia (IRENA)
Bärbel Epp (Solrico)
Duncan Gibb (REN21) Ivetta Gerasimchuk (IISD)
Chetna Hareesh Kumar (REN21) Arslan Khalid (IRENA)
Fanny Joubert (EcoTraders) Muna Abucar Osman (ESMAP)
Ron Kamara (EcoTraders)
Tigran Parvanyan (ESMAP)
Nathalie Ledanois
Rachele Levin Pablo Ralon (IRENA)
Hannah E. Murdock (REN21) Michael Renner (IRENA)
Janet L. Sawin (Sunna Research) Michael Taylor (IRENA)
Jonathan Skeen (The SOLA Group)
Hong Yang (ESMAP)
Freyr Sverrisson (Sunna Research)
Glen Wright (Institute for Sustainable Development and
International Relations) REGIONAL CONTRIBUTORS
CENTRAL AND EAST AFRICA
RESEARCH AND PROJECT SUPPORT
Mark Hankins (African Solar Designs); Fabrice Fouodji
(REN21 SECRETARIAT)
Toche (Vista Organisation for Education and Social
Chetna Hareesh Kumar, Fabio Passaro
Development in Africa)
Flávia Guerra, Ni Made Dwi Sastriani, Hend Yaqoob,
Stefanie Gicquel, Vibhushree Hamirwasia, LATIN AMERICA AND CARIBBEAN
Gwamaka Kifukwe, Yu Yuan-Perrin Aliosha Behnisch, Gonzalo Bravo, Ignacio Sagardoy
(Fundación Bariloche)
COMMUNICATIONS SUPPORT
(REN21 SECRETARIAT) MIDDLE EAST AND NORTH AFRICA
Tammy Mayer, Laura E. Williamson Maged K. Mahmoud, Sara Ibrahim, Akram Almohamd,
Andreas Budiman, Olivia Chen, Katherine Findlay, Elaff Alfadel (Regional Center for Renewable Energy
Alyssa Harris, Jessica Jones-Langley, Florencia Urbani and Energy Efficiency – RCREEE)

SOUTHERN AFRICA
EDITING, DESIGN AND LAYOUT Joseph Ngwawi, Kizito Sikuka (Southern African
Lisa Mastny, Editor Research and Documentation Centre)
Leah Brumer, Editor
weeks.de Werbeagentur GmbH, Design

PRODUCTION
REN21 Secretariat, Paris, France

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 RENEWABLES 2021 GLOBAL STATUS REPORT

ACKNOWLEDGEMENTS (continued)

LEAD COUNTRY CONTRIBUTORS

Austria Sebastian Hermann (German Philippines
Jasmin Haider (Austrian Federal Ministry Environment Agency); Alexandra Manuel Peter (Manila Observatory)
for Climate Action) Langenheld (Agora Energiewende) Portugal
Australia Ghana Mariana Carvalho, Madalena Lacerda,
Mike Cochran (APAC Biofuel Consultants Nana Asare Obeng-Darko (University of Miguel Santos, Susana Serôdio
– an Ecco Consulting Pty Ltd and Eastern Finland Law School) (Portuguese Renewable Energy
EnergyQuest Pty Ltd joint venture); Greece Association – APREN)
Sharon Denny (Global Futuremakers); Panagiotis Fragkos (E3Modelling); Russian Federation
Veryan Patterson (University of Tasmania) Costas Travasaros (Greek Solar Industry Georgy Ermolenko (Institute for Energy,
Bolivia Association – EBHE); Ioannis Tsipouridis, National Research University Higher
Ramiro Juan Trujillo Blanco (Universidad Sara Anastasiou (RED Pro) School of Economics)
Católica Boliviana San Pablo) Hungary Saudi Arabia
Brazil Csaba Vaszko (Geographer) Valeria Cantello (Desert Technologies)
Ricardo Lacerda Baitelo and Rodrigo India South Africa
Sauaia (Associação Brasileira de Energia Sreenivas Chigullapalli (Indian Institute of Sabatha Mthwecu (Solar Rais)
Solar Fotovoltaica – ABSOLAR); Javier Technology Madras); Amit Kumar (The
Spain
Farago Escobar (Harvard University School Energy and Resources Institute – TERI);
Silvia Vera García (Institute for the
of Engineering and Applied Sciences); Yogesh Kumar Singh (National Institute
Diversification and Saving of Energy –
Suani Teixeira Coelho (University of São of Solar Energy); Amit Saraogi (Oorja
IDAE); Gonzalo Martin (Protermosolar);
Paulo Institute of Energy and Environment); Development Solutions Limited); Daksha
Antonio Moreno-Munoz (Universidad de
Clarissa Maria Forecchi Gloria (Divisão de Vaja (Community Science Centre, Vadodara)
Cordoba)
Promoção de Energia, Itamaraty)
Indonesia
Canada Sri Lanka
Marissa Malahayati (National Instititute
Christina Caouette Namiz Musafer (Integrated
for Environmental Studies)
(Natural Resources Canada) Development Association – IDEA)
Japan
Chile Sudan
Hironao Matsubara (Institute for
Rafael Caballero (Energy consultant) Mohamed Alhaj (Clean Energy 4 Africa)
Sustainable Energy Policies); Naoko
China Matsumoto (Ferris University) Suriname
João Graça Gomes (China-UK Low Carbon Abadal Colomina (Inter-American
Jordan
College, Shanghai Jiao Tong University); Development Bank)
Samer Zawaydeh (Association of Energy
Frank Haugwitz (Asia Europe Clean Energy Engineers) Sweden
(Solar) Advisory Co. Ltd – AECEA); Lihui Xu Abdenour Achour (Chalmers
Liberia
(Tsinghua University); Hayan Qin, Guiyong University of Technology)
Wemogar Elijah Borweh
Yu and Hui Yu (Chinese Wind Energy Ukraine
(University of Liberia)
Association – CWEA) Andriy Konechenkov (Ukrainian Wind
Mexico
Colombia Energy Association), Galyna Trypolska
Genice Kirat (Instituto de Energías
Andres Rios (Renewable energy expert) (Institute for Economics and Forecasting,
Renovables, National Autonomous
Costa Rica National Academy of Sciences of Ukraine)
University of Mexico – UNAM)
Guido Godinez and Jairo Quirós-Tortós United Arab Emirates
Morocco
(The Electric Power and Energy Research Beatrix Schmuelling (United Arab
Lydia El Bouazzati
Laboratory – Universidad de Costa Rica) Emirates Ministry of Climate Change
(Energy policy consultant)
Denmark and Environment)
Nepal
Jonas Hamann (Danfoss) Uruguay
Sujan Adhikari (Institute of Engineering,
Egypt Thapathali Campus) Ministry of Industry, Energy and Mining
Hagar Abdel Nabi, Wessam El-Baz, Vietnam
Nigeria
Ahmed El-Guindy, Omar Oraby Neeraj Joshi (Internationale Projekt
Norbert Edomah (Pan-Atlantic
(Nexus Analytica LLC) Consult GmbH); Tran Phuong Dong
University); Iyabo Olanrele (Nigerian
France Institute of Social and Economic (Vietnam National University Ho Chi
Romain Mauger (University of Groningen); Research); Tolulope Peyibomi Amusat Minh City, University of Science)
Romain Zissler (Renewable Energy Institute) (Pamodzi Bio Energy Solutions); Austine Zimbabwe
Germany Sadiq Okoh (Benue State University, Shorai Kavu (Ministry of Energy and
Roman Buss (Renewables Academy); Makurdi) Power Development)

10
LEAD TOPICAL CONTRIBUTORS
BIOENERGY Fortes, Sjef Ketelaars, Susie Wheeldon INVESTMENT
Cristina Calderon, Martin Colla (Bioenergy (GOGLA); Shaily Jha (Council on Energy, Françoise d’Estais, Myriem Touhami
Europe); Bharadwaj Kummamuru (World Environment and Water – CEEW); Kadiri, Sophie Loran (UNEP); Lucile
Bioenergy Association) Daniel Kitwa (Africa Minigrid Developers Dufour (Energy Policy Tracker); Malin
Association – AMDA); Wim Jonker Klunne Emmerich, Christine Gruening, Ulf
BUILDINGS (Consultant); Bonsuk Koo (ESMAP); Moslener (Frankfurt School of Finance
Meredith Annex (BloombergNEF); Arvydas Lebedys, Costanza Strinati and and Management); Angus McCrone
William Burke (Architecture 2030); Adrian Whiteman (IRENA); Yann Tanvez (BloombergNEF); Alan Meng (Climate
Christina Hageneder (Deutsche (International Finance Corporation) Bonds Initiative)
Gesellschaft für Internationale
Zusammenarbeit – GIZ); Femke de Jong ENERGY EFFICIENCY OCEAN POWER
(European Climate Foundation); Adrian Freyr Sverrisson (Advisor; Sunna Research); Ana Brito e Melo (WavEC Offshore
Hiel (Energy Cities); Richard Lowes Dusan Jakovljevic (Energy Efficiency in Renewables); Rémi Collombet, Rémi
(University of Exeter); Vincent Martinez Industrial Processes); Rod Janssen (Energy Gruet (Ocean Energy Europe)
(Architecture 2030); Mariangiola Fabbri, in Demand); Benoît Lebot (Ministère de la
Arianna Vitali (Buildings Performance Transition Ecologique et Solidaire) POLICY
Institute of Europe – BPIE); Nora Valerie Bennett, Justin Malecki (Ontario
Steurer (Global Alliance for Buildings ENERGY SYSTEMS INTEGRATION Energy Board); Emanuele Bianco, Sufyan
and Construction, United Nations Simon Mueller (Energy Transition Diab (IRENA); Maxine Jordan (IEA); Julia
Environment Programme – UNEP); Catalytics); Luis Munuera (IEA); Charlie Levin (Environmental Defence)
Louise Sunderland (Regulatory Smith (Energy Systems Integration
Group); Owen Zinaman (National SOLAR PHOTOVOLTAICS
Assistance Project)
Renewable Energy Laboratory) Alice Detollenaere (Becquerel Institute);
BUSINESS DEMAND FOR Denis Lenardič (pvresources); Gaëtan
RENEWABLES (FEATURE) GEOTHERMAL POWER AND HEAT Masson (Becquerel Institute and
Gabriel de Malleray, Amy Haddon Marit Brommer, Margaret Krieger IEA Photovoltaic Power Systems
(Schneider Electric); Tibor Fisher (International Geothermal Association – IGA) Programme); Paula Mints (SPV Market
(German Energy Agency – dena); Rainer Research); Dave Renne (International
GLOBAL OVERVIEW Solar Energy Society); Michael Schmela
Hinrichs-Rahlwes (European Renewable
Zuzana Dobrotkova (World Bank); Paolo (SolarPower Europe)
Energies Federation); Lucy Hunt (World
Frankl (IEA); Frank Haugwitz (AECEA);
Business Council for Sustainable
Tomas Kåberger (Renewable Energy SOLAR THERMAL HEATING
Development); Yann Kulp (eIQ
Institute); Ruud Kempener (European AND COOLING
Mobility); Christiane Mann; Dave Renne
Commission, Renewable Energy Policy Hongzhi Cheng (Sun’s Vision); Pedro
(International Solar Energy Society);
Unit); Paul H. Suding (Indipendent Dias (Solar Heat Europe); Monika Spörk-
Stephanie Weckend (IRENA)
Consultant); Griffin Thompson Dür (AEE – Institute for Sustainable
DATA (Georgetown University) Technologies); He Tao, Ruicheng Zheng
Nazik Elhassan, Adrian Whiteman (China Academy of Building Research)
HEAT PUMPS
(IRENA); Duncan Millard (Consultant)
Meredith Annex (BloombergNEF); Richard TRANSPORT
DISTRIBUTED RENEWABLES Lowes (University of Exeter); Thomas Flávia Guerra (REN21); Nikola
FOR ENERGY ACCESS Nowak (European Heat Pump Association); Medimorec, Karl Peet (SLOCAT
Donee Alexander, Colm Fay, Peter Nancy Wang (Chinaiol); Cooper Zhao Partnership on Sustainable, Low Carbon
George, Julie Ipe, Kip Patrick, Asna (China Heat Pump Association) Transport); Patrick Oliva (Paris Process
Towfiq (Clean Cooking Alliance); Fabiani on Mobility and Climate); Marion Vieweg
HEATING AND COOLING (Current Future)
Appavou (Ministry of Finance and
Marit Brommer (Advisor; IGA), François
Economic Development); Benjamin Attia
Briens (IEA) WIND POWER
(WoodMac); Juliette Besnard (ESMAP);
Stefan Gsänger, Jean-Daniel Pitteloud
William Brent (Power for All); Kelly HYDROPOWER (World Wind Energy Association); Ivan
Brinkler; Arthur Contejean (International Alex Campbell, Cristina Diez Santos Komusanac (WindEurope); Feng Zhao
Energy Agency – IEA); Harry Clemens (International Hydropower Association); (Global Wind Energy Council); American
(Hivos); Brian Dean, Ben Hartley, Alvin Wim Jonker Klunne (Energy4Africa); Clean Power Association
Jose, Alice Uwamaliya (Sustainable Eva Kremere (United Nations Industrial
Energy for All – SEforALL); Laura Development Organization – UNIDO)

11
 RENEWABLES 2021 GLOBAL STATUS REPORT

ACKNOWLEDGEMENTS (continued)

PEER REVIEWERS AND OTHER CONTRIBUTORS

Mussa Abbasi Mussa (Ministry of Energy, Myagmardorj Enhkmend (Mongolian Wind Ortiz Acosta (MIT-Portugal Program); Brian
Tanzania); Hagar AbdelNabi (Nexus Energy Association); Yasemin Erboy Ruff Park (Inuvialuit Regional Corporation);
Analytica LLC); Adedoyin Adeleke (CLASP); Jose Etcheverry (York University); Tomasz Pawelec (UNIDO); Jem Porcaro
(International Support Network for African Ashkan Etemad (LEEDinIran); Colm (SEforALL); Elisa Portale (ESMAP);
Development); Disha Agarwal (Council Fay (Clean Cooking Alliance); Ezequiel Magdolna Prantner (Wuppertal Institute
on Energy, Environment and Water); Iqbal Ferrer (SolarPACES); Robert Fischer for Climate, Environment and Energy);
Akbar (Technical University of Berlin); (Luleå University of Technology); Jason Pallav Purohit (International Institute for
Udochukwu B. Akuru (Tshwane University Fisher (Isleofrocks); Mindy Fox (Solar Applied Systems Analysis); Muhammad Ali
of Technology, South Africa & Cookers International); Anna Freeman Qureshi (UNIDO); Daya Ram Nhuchhen
University of Nigeria, Nsukka); Mohammad (Clean Energy Council); Sabine Fröning (Transition Accelerator); Oliver Rapf
Albtowsh; Noor Eldin Alkiswani (EDAMA); (Communication Works); Therese Galea (Buildings Performance Institute Europe);
Nevin Alija (NOVA Law Green Lab, NOVA (Energy & Water Agency, Malta); Thomas Atul Raturi (University of the South Pacific);
School of Law); Reem Almasri (EDAMA); Garabetian (European Geothermal Energy Roelof Reineman (Roelof Reineman);
Farrah Ali-Khan (Ontario Ministry of Council); Shirish Garud (TERI); Christoph Niels Reise (Communication Works);
Environment, Conservation and Parks); Graecen (ESMAP); Thakshila Gunaratna Maria Riabova (Moscow State Institute of
Mohammad Alnajideen (Cardiff School of (Clean Energy Council); Qin Haiyan International Relations, MGIMO University);
Engineering); Eros Artuso (Terra Consult (Chinese Wind Energy Association); Kirsty Christoph Richter (Deutsches Zentrum für
Sàrl); Diana Athamneh (EDAMA); Patrick Hamilton (Chatham House); Gang He Luft- und Raumfahrt e.V. – DLR); Eleazar
Atouda Beyala (SOAS University of (Department of Technology and Society, Rivera (Ashrae Mexico); Vera Rodenhoff
London); Shakila Aziz (United International Stony Brook University); Sebastian (German Ministry of the Environment);
University); Sarah Baird (Let There Be Light Hermann (Germany Environment Agency); Javier Eduardo Rodriguez (Colibri Energy
International); Stefan Bakker (Consultant); Miguel Herrero Cangas (SolarPower SAS); Judit Rodriguez Manotas (UNIDO);
Krishnan Balasankari (Renewable Cogen Europe); Pippa Howard (FFI); Lizzy lgbine Ingrid Rohrer (SEforALL); Ahmed
Asia); Jessica Battle (World Wildlife Fund); (Nigerian Women Agro Allied Farmers Rontas (Raguinot); Heather Rosmarin
Matthieu Ballu (European Commission); Association); Tetsunari Iida (Institute for (InterAmerican Clean Energy Institute);
Alex Beckitt (Hydro Tasmania); Nikolay Sustainable Energy Policies); Arnulf Jaeger- Raffaele Rossi (SolarPower Europe);
Belyakov (Independent consultant); Waldau (European Commission, Joint Clotilde Rossi di Schio (SEforALL); Philip
Tabitha Benney (University of Utah); Research Centre); Rob de Jong (UNEP); Russell (Mexico Energy News); Felipe
Markus Bissel (GIZ); Linh H. Blanning Mohamed Atef Kamel (Freelance energy Sabadini (RWTH Aachen University);
(Voltalia); Rina Bohle Zeller (Vestas); consultant); Phubalan R. Karunakaran Olga Savchuck (IN Center for Innovation,
Adriano Bonotto (Divisão de Promoção de (WWF-Malaysia); Hwajin Kim (United Technology and Policy Research); Miguel
Energia, Itamaraty); Emilio Bravo (Mexico Nations Institute for Training and Research); Schloss (Surinvest Ltd.); Nicole Schrön
Low Emission Development Program, US Bozhil Kondev (Consultant); Manoj (German Federal Ministry for Economic
Agency for International Development); Kumar Singh (ISOBARS Energy); Mercè Affairs and Energy); Cecile Seguineaud
Jesse Broehl (ACPA); Emmanuel Branche Labordena (SolarPower Europe); Oliver (Independant energy consultant); Luc
(EDF); Roman Buss (Renewables Lah (Wuppertal Institute for Climate, Severi (SEforALL); Fares Shmayssani
Academy AG); Rebecca Camilleri (Energy Environment and Energy); Maryse Labriet (Lebanese University); Ralph Sims
& Water Agency, Malta); Valeria Cantello (ENERIS); Debora Ley (Latinoamérica (Massey University); Karla Solis (Regional
(Energrid); Tamojit Chatterjee (SEforALL); Renovable); Holger Loew (Renewables Collaboration Centre of Latin America,
Joan Chahenza (AMDA); Sandra Chavez Grid Initiative); Luca Longo (UNIDO); United Nations Framework Convention
(Powerhouse); Mwewa Chikonkolo Mwape Juergen Lorenz (jlbtc, ENPOWER); Detlef on Climate Change); Rafel Soria Penafiel
(ZESCO Limited); Jan Clyncke (PV Cycle); Loy (Loy Energy Consulting); Joshua (Universidad San Francisco de Quito,
Olivia Coldrey (SEforALL); Penelope Loughman (Arizona State University); Ecuador); Laiz Souto (University of
Crossley (The University of Sydney); Edgar Juan Roberto Lozano (Emerging Leaders Girona); Satrio Swandiko; Yael Taranto
Hernan Cruz Martinez (Climate finance in Environmental and Energy Policy (SHURA Energy Transition Center);
consultant); Tabaré A. Currás (World Network); Fabio Lucantonio (independent Tanguy Tomes (Palladium); Dong Tran
Wildlife Fund); David Jonathan D’Souza consultant); Marissa Malahayati (National (Department of Environment, University
(IMDEA Energy Institute); Pablo del Río Instititute for Environmental Studies); of Natural Sciences, National University
(Spanish National Research Council – Anik Masfiqur Rahman (Ontario Power of Ho Chi Minh City); Hoa Tran (GIZ);
CSIC); Irene Di Padua (Solar Heat Europe Generation); Rihardian Maulana Wicaksono Patricia Villarroel Sáez (Court of Appeal
and European Solar Thermal Industry (Institut Teknologi Sumatera); Lionel of Valparaíso, Chile); Prof. Dr. Tanay Sidki
Federation); Antonello Di Pardo (Gestore Mbanda (North China Electric Power Uyar (Marmara Universitesi); Xinfang Wang
dei Servizi Energetici); Renato Domith University); Emi Mizuno (SEforALL); (University of Birmingham); Peter Yang
Godinho (German Federal Ministry for Saurabh Motiwala (Akshat Jyoti Solutions); (Case Western Reserve University); Prof.
Economic Cooperation and Development Divyam Nagpal (University College Noureddine Yassaa (Algerian Commission
– BMZ); Christine Eibs Singer (SEforALL); London); Zaibul Nisa (Planetive); Laura for Renewable Energy and Energy
Mariam El Forgani (Libyan Ministry Maria Noriega Gamarra (ICLEI–Local Efficiency); Arthouros Zervos (National
of Electricity and Renewable Energy); Governments for Sustainability); Jesse Technical University of Athens); Zedong
Khalil Elahee (University of Mauritius); Nyokabi (Green Energy); Dania Carolina Zhang; Eduarda Zoghbi (SEforALL).

12
F ORE WORD
2020 was a year of disruption. The pandemic had a tragic impact on our communities but our health benefited from the
extreme drop in fossil fuel use. It was also a year of new norms in the renewable energy sector. Ambition increased at
an accelerated pace with a dramatic expansion of net zero emission targets. Increasing pressure from citizens and civil
society led courts to force countries to strengthen their own climate plans, while the private sector purchased record
amounts of renewable energy.
However, the past teaches us that ambition is not enough. It must be translated into action. While this year’s Renewables
2021 Global Status Report (GSR) shows continuing progress in the power sector, the share of renewables in heating and
transport has barely changed from past levels. Despite all the rhetoric, we are nowhere near the necessary paradigm shift
towards a clean, healthier and more equitable energy future.
Clearly, we need a structural shift. It’s not just about deploying and installing renewables. It’s also about conserving
energy, integrating energy efficiency AND leaving fossil fuels in the ground. It’s time to stop talking only about gigawatts of
installed capacity. We must emphasise how renewables can support development, economic development and a cleaner,
healthier environment. If we are to achieve the energy transition, we need to integrate renewables across all economic
sectors.
This year’s report shows that governments need to act more aggressively and press forward with renewables in all
sectors. The window of opportunity is closing and efforts must be ramped up significantly. This will not be easy. The share
of fossil fuels in overall final energy demand is as high as it was a decade ago. While renewables grew almost 5% per year
from 2009 to 2019, fossil fuel shares remained at around 80% over the same period. And with fossil fuel subsidies in 2019
totalling USD 550 billion – almost double the total investment in renewables – the last 10 years of climate policy promises
have shown themselves to be mostly empty words.
One way to accelerate development is to define the uptake of renewable energy as a key performance indicator (KPI).
To borrow a business adage, “What gets measured gets done.” By measuring our performance, we can close the gap
between ambition and target. And how better to measure our progress towards a clean energy transition? We must use
the share of renewable energy in final energy consumption as a KPI and link it to every economic activity, every budget,
every single purchase. This may sound overly ambitious, but we need urgent action. We cannot afford to make any more
commitments that do not produce action. This needs to happen now.
I hope that the pages of this report contain the data and information you need to continue your work in making renewable
energy the new norm. I would like to thank all those who have contributed to this year’s edition. Particular thanks go to
the Research Direction Team of Hannah E. Murdock, Duncan Gibb and Thomas André; Special Advisors Janet L. Sawin,
Adam Brown and Lea Ranalder; the many authors; our editors, Lisa Mastny and Leah Brumer; our designers, Caren
Weeks, Nicole Winter and Sebastian Ross; and all those who provided data and participated in the peer review process.
Once again, this report illustrates the power of a collective process.

Rana Adib
Executive Director, REN21

June 2021

13
ES
Cascades Inc. diverts three-quarters of the residual materials from its plants away from landfills, using them in
biomass boilers or to fertilise farmland, and has committed to achieving 100% renewable electricity by 2030.
EXECUTIVE
SUMMARY

01 GLOBAL OVERVIEW
Despite the impacts of the COVID-19 pandemic, renewable many had not yet set new targets as their 2020 targets expired.
energy set a record in new power capacity in 2020 and was the In addition, investments in fossil fuels outlined in COVID-19
only source of electricity generation to register a net increase recovery packages worldwide were six times greater than the
in total capacity. Investment in renewable power capacity rose, level of investments allocated to renewable energy.
although slightly, for the third consecutive year, and corporations
As in past years, the highest share of renewable energy use was
continued to break records for sourcing renewable electricity.
in the electricity sector (26% renewables); however, electrical end-
More countries shifted towards renewables for the electrification
uses accounted for only 17% of total final energy consumption. The
of heat. Although production of transport biofuels declined,
transport sector, meanwhile, accounted for an estimated 32% of
electric vehicle (EV) sales expanded, as did the linking of EVs and
TFEC and had the lowest share of renewables (3.3%). The remaining
renewable power, although to a lesser extent. China was among
thermal energy uses, which include space and water heating, space
the countries that strengthened their commitments to action on
cooling, and industrial process heat, represented more than half
the climate crisis, setting a carbon-neutral target. The United
(51%) of TFEC; of this, renewables supplied some 11%.
States re-joined the Paris Agreement in early 2021.
Meanwhile, previous obstacles to progress in the renewable As of 2019, modern renewable energy (excluding the traditional
energy sector persisted during 2020. They include the slow use of biomass) accounted for an estimated 11.2% of TFEC, up
increase in the share of renewables in total final energy from 8.7% a decade earlier. Despite tremendous growth in some
consumption (TFEC), inadequate innovation in some sectors, the renewable energy sectors, the share of renewables has increased
need for infrastructure development, the lack of affordability in only moderately each year. This is due to rising global energy
some markets, the absence of sufficient policy and enforcement, demand, continuing consumption of and investment in new fossil
and ongoing support for fossil fuels. fuels, and declining traditional use of biomass (which has led to a
shift towards fossil fuels).
For the first time, the number of countries with renewable energy
support policies did not increase from the previous year. Despite This slow progress points to the complementary and fundamental
greater interest in net zero targets during 2020, these targets roles of energy conservation, energy efficiency and renewables in
do not necessarily cover all greenhouse gases or sectors, nor reducing the contribution of fossil fuels to meeting global energy
do they necessarily lead to increased attention to renewables needs and reducing emissions. With the concentration of carbon
or to success in meeting renewable energy targets. While such dioxide (CO2) in the atmosphere still rising to record levels even
targets are in place in nearly all countries, many countries were as emissions have fallen, it has become increasingly clear that a
not on track to achieve their 2020 targets in multiple sectors, and structural shift is needed to reach long-term climate targets.

15
 RENEWABLES 2021 GLOBAL STATUS REPORT

BUILDINGS INDUSTRY
Renewable energy meets a growing portion of final The share of renewables in industrial energy demand
energy demand in buildings, although its share is still remains small, particularly in sectors that require high
less than 15%. temperatures for processing.
Renewables remained the fastest growing source of energy in Renewable energy accounts for only around 14.8% of total
buildings, increasing 4.1% annually on average between 2009 and industrial energy demand and is used mainly in industries with low-
2019. The highest growth was in electricity use, whereas heating temperature requirements for process heat. In heavy industries
with renewable energy rose more slowly. Modern bioenergy – iron and steel, cement, and chemicals – renewables accounted
(such as the use of wood-based fuel in efficient stoves) still for less than 1% of the combined energy demand in 2018.
represented the largest source of renewables in the buildings Bioenergy (mainly biomass) supplies around 90% of renewable
sector, especially in providing heat, although its growth has heat in the industrial sector, primarily in industries where biomass
been roughly stagnant.. waste and residues are produced on-site. Renewable electricity
The use of renewable electricity for heat (for example, through accounts for the second largest share (10%) of renewable
electric heat pumps) provided the second largest renewable industrial heat, although it represented only 1% of total industrial
energy contribution to heat demand and showed the greatest heat consumption in 2019. Solar thermal and geothermal
growth in recent years. Solar thermal heat, geothermal heat and technologies accounted for less than 0.05% of total final industrial
district energy networks also have grown quickly, albeit starting energy use in 2018.
from a smaller base. Policies to stimulate renewable energy The COVID-19 pandemic temporarily reduced industrial
uptake in buildings remain relatively scarce, although many energy demand, with global bioenergy use in industry falling
options exist to improve efficiency in new and existing buildings, 4% in 2020. Measures to promote the uptake of renewables
expand access to electricity and clean cooking, and encourage in industries received limited attention in COVID-19 stimulus
the use of renewables. packages, although some countries announced renewable
hydrogen strategies or investment plans to support industrial
decarbonisation. By the end of 2020, only 32  countries had at
least one renewable heating and cooling policy for industry (all of
them economic incentives, such as subsidies, grants, tax credits
or loan schemes).

Despite tremendous
growth in some renewable
energy sectors, the share
of renewables has

increased only
moderately
each year.

16
TRANSPORT POWER
After falling initially, transport energy demand rebounded Driven by solar photovoltaic (PV) and wind power, the
by the end of the year. Trends show rising demand and a renewable power sector surged in the second half of 2020
stagnant share of renewable energy. to overcome the pandemic’s impacts.
The COVID-19 pandemic had significant impacts on the Installed renewable power capacity grew by more than
transport sector and its use of renewable energy. Transport 256  gigawatts (GW) during the pandemic, the largest ever
activity and energy demand fell sharply in the early months of increase. Continuing a trend dating back to 2012, net additions
2020 but rebounded by year’s end. Longer-term trends have of renewable power generation capacity outpaced net
shown that growth in energy demand for transport has far installations of both fossil fuel and nuclear power capacity
outpaced that for other sectors. combined. China again led the world in renewable capacity
added, accounting for nearly half of all installations in 2020
Transport remains the sector with the lowest share of
and leading the global markets for concentrating solar thermal
renewables, as oil and petroleum products (and 0.8% non-
power (CSP), hydropower, solar PV and wind power.
renewable electricity) continue to meet nearly all global
transport energy needs (95.8%). Biofuels and renewable China added nearly 117  GW, bringing online more renewable
electricity met small shares of those needs (3.1% and 0.3%, capacity in 2020 than the entire world did in 2013 and almost
respectively). Following a decade of steady growth, biofuel doubling its additions from 2019. By the end of 2020, at least
production decreased in 2020 due to the overall decline in 19 countries had more than 10 GW of non-hydropower
transport energy demand, while electric car sales increased renewable capacity, up from 5 countries in 2010. Renewable
41% during the year. The use of or investment in renewable energy reached a record share – an estimated 29% – of the
hydrogen and synthetic fuels for transport increased in some global electricity mix. Despite these advances, renewable
regions but remained relatively minimal. electricity continued to face challenges in achieving a larger
share of global electricity generation, due in part to persistent
Overall, the transport sector is not on track to meet global
investment in fossil fuel (and nuclear) power capacity.
climate targets. Many countries still lack a holistic strategy
for decarbonising transport. Such a strategy could greatly
decrease energy demand in the sector and thus allow for the
renewable share in transport to increase.

China
added nearly 117 GW of
renewable power, bringing
online more capacity in
2020 than the entire world
did in 2013.

17
 02 POLICY LANDSCAPE
Despite the COVID-19 crisis, policy support for renewables
generally remained strong throughout 2020.
HEATING AND COOLING IN BUILDINGS
Despite the enormous potential for renewable energy in
By the end of 2020, nearly all countries had in place renewable
heating and cooling, policy developments in heating and
energy support policies, although with varying degrees of ambition.
cooling for buildings in 2020 remained limited, outstripped
Corporate commitments to renewable energy also increased
by policies aimed at electricity generation and transport.
during the year, led by market-based drivers such as action on
climate change and the declining costs of renewable electricity. Financial incentives were the most common mechanism used to
encourage renewable heating and cooling in buildings in 2020. All
While the suite of renewable energy policies implemented during
such policies enacted or revised during the year were in Europe.
the year was affected in part by the COVID-19 pandemic, it also
evolved in response to increased action on climate change, falling Evidence also points to growing interest in electrification of heating
costs of renewables, evolving network and system integration and cooling, which can increase the penetration of renewables
demands, and the changing needs and realities of different in the buildings sector if the electricity used is generated from
jurisdictions. renewable sources. In 2020, policy makers in a number of
national and sub-national jurisdictions focused rising attention
on policies targeting building heating and cooling electrification.
RENEWABLE ENERGY AND Energy efficiency policies also received international attention.

CLIMATE CHANGE POLICY

2020 was an important year for climate change policy INDUSTRY
commitments.
Policy developments related to increasing the share of
Although the COVID-19 crisis was the central political focus of renewables in industry remained scarce in 2020, compared
the year, commitments to climate change mitigation stood out. with policies directed at all other end-use sectors.
Overall, 2020 was an important milestone for climate change
Although renewable energy solutions for industrial uses are
policy, as many countries’ greenhouse gas targets for the year
available, they are not yet competitive with fossil fuels, and
expired. Countries set new targets, and many committed to
policy support remains critical for increasing renewables in this
carbon neutrality.
sector. However, such support remained rare in 2020. By year’s
While some jurisdictions enacted climate change policies that end, only 32 countries had some form of renewable heating and
indirectly stimulate the uptake of renewable energy, a growing cooling policy for industry (no change from 2019), with financial
number adopted comprehensive policies directly linking incentives being the most common form of policy support.
decarbonisation with increased deployment of renewables.
Policy mechanisms implemented in 2020 that can indirectly
stimulate interest in renewable energy included fossil fuel bans
and phase-outs, greenhouse gas emission reduction targets, and
carbon pricing and emission trading systems. In addition, at least
six regional, national and state/provincial governments adopted
comprehensive, cross-sectoral climate policies that include direct
support for renewables.

18
TRANSPORT POWER
Decision makers are focusing increasingly on expanding As in previous years, the power (electricity generation)
the use of renewables in the transport sector, with an sector continued to receive significant renewable energy
emphasis on transport electrification. policy attention in 2020.
Although biofuels continue to be a central component of road The power sector continued to receive the bulk of renewable
transport policy frameworks, the electrification of transport energy policy attention in 2020, as in previous years. Targets
received much of the attention in 2020. Policies aimed at transport were the most popular form of intervention: by the end of 2020,
electrification are not renewable energy policies in and of 137 countries had some form of renewable electricity target,
themselves, but they offer the potential for greater penetration of compared with 166 in 2019.
renewable electricity in the sector, to the extent that the electricity Although feed-in policies remain a widely used policy mechanism
used for charging vehicles is generated from renewable sources. for supporting renewable power, in 2020 the shift continued from
As in past years, policy makers focused most of their attention on feed-in policies (set administratively) to competitive remuneration
road transport. EV policies became increasingly popular in 2020, through tenders and auctions. Despite the continued popularity
although the vast majority of these continued to lack a direct of net metering policies, some jurisdictions began transitioning
link to renewable electricity generation. However, the number of away from net metering or modified their programmes to charge
countries with EV policies that do have a direct link to renewables customers fees for participating.
increased from two to three during the year. Financial incentives, while always an important policy tool, were
Rail, aviation and shipping still receive much less policy attention especially important for the power sector in 2020 as a result of
than road transport, even though they are the fastest growing the COVID-19 pandemic.
transport sub-sectors and account for a rising share of total final
energy use in transport.
SYSTEMS INTEGRATION OF VARIABLE
RENEWABLE ELECTRICITY (VRE)
Many jurisdictions with relatively high shares of renewables
are implementing policies designed to ensure the successful
integration of VRE into the broader energy system.

EV policies The policy push for systems integration of renewables and

enabling technologies, such as energy storage, focuses
became increasingly primarily on increasing power system flexibility and control, as
popular in 2020, although well as grid resilience. Policies to advance the integration of VRE
the vast majority of focused on market design, improving electricity transmission
these continued to lack a and distribution system infrastructure, and supporting the
direct link to renewable deployment of energy storage.
electricity generation.

19
 RENEWABLES 2021 GLOBAL STATUS REPORT

03 MARKET AND INDUSTRY TRENDS

BIOENERGY GEOTHERMAL POWER AND HEAT
Modern bioenergy provided 5.1% of total global final energy Geothermal electricity generation totalled around 97 TWh in
demand in 2019, accounting for around half of all renewable 2020, while direct use of geothermal heat reached about 128
energy in final energy consumption. TWh (462 petajoules).
Modern bioenergy provided 9.5% of the heat required in industry An estimated 0.1 GW of new geothermal power generating capacity
and agriculture in 2019, an increase of around 16% since 2009. came online in 2020, bringing the global total to around 14.1 GW. The
Bioenergy also provided 5% of the heat needed for buildings, year saw relatively little growth in capacity compared to recent years
with this use up 7% over the decade. (attributed in part to pandemic-related disruption), with almost all
new facilities located in Turkey. The United States and Japan added
Biofuels – mostly ethanol and biodiesel – provide around 3%
minor amounts of geothermal power capacity in 2020.
of transport energy. In 2020, global biofuel production fell
5% due to the impacts of the COVID-19 pandemic on overall Direct use of geothermal energy for thermal (heat) applications is
transport energy demand. Ethanol production declined around highly concentrated geographically, with only four countries – China,
8%, with an 11% drop in production in the United States, the Turkey, Iceland and Japan – accounting for three-quarters of the
major producer. Global biodiesel production increased slightly energy consumed. Direct use has grown at an average rate of nearly
to meet higher blending levels in Indonesia (the world’s largest 8% in recent years, with space heating being the primary driver.
biodiesel producer) and in Brazil, as well as higher demand in Some of the most active markets lack access to high-temperature
the United States. resources and often face higher costs and greater technical
challenges to accessing geothermal heat. Countries with noteworthy
In the electricity sector, bioenergy’s contribution rose 6% in
activity in 2020 included France, Germany and the Netherlands.
2020, reaching 602  terawatt-hours (TWh). China remained
the largest generator of bio-electricity, followed by the United The geothermal industry was characterised by project delays and
States and Brazil. by meagre and highly concentrated market growth. The main
focus continued to be on technological innovation, such as new
The most notable industry trend was rising investment in
resource recovery techniques and seismic risk mitigation, with the
hydrotreated vegetable oil (HVO), with a 12% increase in
aim of improving the economics, lowering the development risk
production in 2020. Plans were announced for many additional
and strengthening prospects for expanded resource development.
plants, which could more than quadruple current capacity. HVO
However, as in past years, the hopes of expanding geothermal
production would then exceed that of FAME (fatty acid methyl
development beyond the relatively few and concentrated centres of
ester) biodiesel.
existing activity remained largely unmet. High costs and project risks
have continued to deter investment in most places, especially in the
absence of government support (such as feed-in tariffs and risk
mitigation funds), although certain pockets of innovation attracted
new investment from established entities in the energy industry.

In 2020,

global biofuel
production
fell 5% due to the impacts
of the COVID-19 pandemic
on overall transport energy
demand.

20
 HYDROPOWER OCEAN POWER
The global hydropower market grew in 2020, but China was Ocean power represented the smallest portion of the
responsible for more than half of capacity additions. renewable energy market, yet new targets for ocean power
capacity were set during the year.
Despite a 24% increase in capacity additions, driven mainly by
China, the global hydropower market did not recover in 2020 Ocean power represents the smallest portion of the renewable
after several years of deceleration. The effects of the COVID-19 energy market, with most projects focused on relatively
pandemic were notable, with the market slowing as construction small-scale demonstration and pilot projects of less than
was halted temporarily, component supply chains were disrupted, 1 megawatt (MW). Net additions in 2020 totalled around 2 MW,
and energy demand fell. New capacity was an estimated 19.4 GW, with an estimated 527 MW of operating capacity at year’s end.
raising the total global installed capacity to around 1,170  GW. Ocean power technologies are steadily advancing towards
Global hydropower generation increased 1.5% in 2020 to reach commercialisation, and tidal turbines continued to demonstrate
an estimated 4,370  TWh, representing around 16.8% of the their reliability. However, consistent policy and revenue support
world’s total electricity generation. remain critical.
China added 12.6 GW of hydropower capacity in 2020, its largest Development activity is concentrated primarily in Europe, and
addition of the previous five years, and regained the lead from particularly off the coast of Scotland, but has increased steadily
Brazil in commissioning new hydropower capacity, followed by in China, the United States and Canada. The resource potential
Turkey, India and Angola. Pumped storage capacity increased of ocean energy is enormous, but it remains largely untapped
slightly (up 1.5  GW, or 0.9%), with projects in China and Israel, despite decades of development efforts.
bringing total capacity to 160 GW. Several large pumped storage The ocean power industry experienced delays of planned
projects were in the pipeline, including in Australia, Greece, deployments due to COVID-19, and developers redirected
India, Portugal, Scotland and Turkey, in part to support growth their focus to device and project development. Operational
in solar PV and wind power. tidal turbines continued to generate power reliably and to
The hydropower industry continued to face challenges as well move towards commercialisation. Across the sector, financial
as opportunities, with both of these affected by the pandemic- and other support from governments, particularly in Europe
induced recession. Challenges included operational and technical and North America, continued to boost private investments in
factors, environmental and social acceptability, a global decline ocean power technologies, especially tidal stream and wave
in wholesale electricity prices, and adverse climate impacts on power devices.
hydropower production and infrastructure. Opportunities for
industry expansion included technology improvements and
increased performance, the remaining untapped potential of
smaller resources, synergies with VRE, and increased needs for
grid flexibility.

21
 RENEWABLES 2021 GLOBAL STATUS REPORT

SOLAR PHOTOVOLTAICS (PV) CONCENTRATING SOLAR THERMAL

Solar PV had another record-breaking year, adding as much POWER (CSP)
as an estimated 139 GW, for an estimated total of 760 GW.
Despite declining costs, CSP capacity grew in only one
Pending policy changes drove much of the growth in the top country during 2020.
three markets – China, the United States and Vietnam – but
Global CSP capacity grew a mere 1.6% in 2020 to 6.2 GW, with a
several other countries saw noteworthy expansion.
single 100 MW parabolic trough project coming online in China.
Favourable economics have boosted interest in distributed This was the lowest annual market growth in over a decade, the
rooftop solar PV systems. In 2020, growth in this market share result of increasing cost competition from solar PV, the expiry of
was due mainly to a rush of installations in Vietnam in advance CSP incentive programmes and a range of operational issues at
of the expiry of the country’s feed-in tariff; however, Australia, existing facilities.
Germany and the United States also saw significant increases
More than 1 GW of CSP projects was under construction in the
as homeowners invested in home improvements during the
United Arab Emirates, China, Chile and India during the year. The
pandemic.
majority of this capacity is based on parabolic trough technology
South Australia achieved one of the world’s highest levels and is being built in parallel with thermal energy storage (TES).
of solar penetration in 2020. The state’s power system has At year’s end, an estimated 21 gigawatt-hours of thermal energy
become the world’s first large-scale system to approach the storage was operating in conjunction with CSP plants across five
point at which rooftop solar PV effectively eliminates demand continents. Global TES capacity, installed mainly alongside CSP,
for electricity from the grid. is almost double that of utility-scale battery storage.
The solar PV industry rode a roller coaster in 2020, driven largely During the 2010s, CSP costs fell nearly 50%, the largest decline
by pandemic-related disruptions, as well as by accidents at for all renewable energy technologies, with the exception of solar
polysilicon facilities in China and a shortage of solar glass. These PV. In many cases, CSP plants are being retrofitted with TES or
disruptions, due in large part to heavy reliance on China as the co-located with solar PV capacity to lower costs and increase
world’s dominant producer, combined with concerns about capacity values.
possible forced labour in polysilicon production, led to calls in
many countries for the creation of local supply chains.
Despite the multiple challenges, new actors entered the sector.
Competition and price pressures continued to motivate investment
to improve efficiencies, reduce costs and improve margins.
The solar PV industry has become the major driver of growth in
Solar PV
polysilicon production and accounts for a rising share of demand had another
for other resources and materials, such as glass and silver. In
most countries, recycling panels at the end of their useful life – record year,
as a means to reclaim these resources and minimise associated while only a single
environmental impacts – is only starting to gain attention. CSP project came
online in 2020.

22
 SOLAR THERMAL HEATING WIND POWER
An estimated 25.2  gigawatts-thermal (GWth) of new solar The wind power market achieved a record-breaking 93 GW
thermal capacity was added in 2020, increasing the global of new installations, bringing total capacity onshore and
total 5% to around 501 GWth . offshore to nearly 743 GW.
China again led in new solar thermal installations, followed by China and the United States led the growth in wind power with
Turkey, India, Brazil and the United States. Most large solar record years, driven by pending policy changes at the end of
thermal markets were constrained by COVID-19-related 2020 in both countries. Several other countries also reached
challenges, and in some cases commercial clients postponed installation records, while the rest of the world installed about
investment decisions. However, the reduction was smaller than the same amount as in 2019. Wind power accounted for a
expected due to stabilising factors such as ongoing business substantial share of electricity generation in several countries in
in the construction sector and higher demand from residential 2020, including Denmark (over 58%), Uruguay (40.4%), Ireland
owners, many of whom spent more time at home and invested in (38%) and the United Kingdom (24.2%).
infrastructure improvements.
Nearly 6.1  GW of capacity was connected offshore for a global
The year was bright for solar district heating in China and total of 35.3 GW. Interest in offshore wind power is increasing –
Germany, thanks to policy support for green heating technologies. including among corporations looking to sign power purchase
The global solar district heating market also diversified into agreements (PPAs) – due to the large scale of generation, high
new markets in Europe (Croatia, Kosovo and Serbia) and Asia capacity factors, fairly uniform generation profiles and falling costs.
(Mongolia). In addition, central solar hot water systems for large
The wind industry continued to face perennial challenges
residential and commercial buildings sold well in China, Brazil
that were exacerbated by the pandemic. Despite selling more
and Turkey. By year’s end, at least 471 solar district heating or
turbines, even top manufacturers suffered losses for the year,
central hot water systems (at least 350 kilowatts-thermal) were
closed factories and laid off workers as the highly competitive
operating worldwide, totalling 1.8 GWth of capacity.
market, together with pandemic-related costs and delays,
Hybrid, or solar PV-thermal (PV-T), collectors became more squeezed profit margins further.
popular in several countries. In total, 36 manufacturers
In some markets, governments responded by extending policy
worldwide reported PV-T capacity of at least 60.5 megawatts-
deadlines, and new policy commitments helped stimulate record
thermal (MWth) (connected to 24 MW-electric), up sharply from
investments. For the first time, global capital expenditures
46.6 MWth in 2019.
committed to offshore wind power during the year surpassed
More collector manufacturers and project developers began investments in offshore oil and gas.
offering solar industrial heat (SHIP) solutions to factories
To diversify in key markets, turbine manufacturers and project
worldwide. At least 74 SHIP systems, totalling 92 MWth , started
developers continued expanding into new sectors, even as new
operation globally in 2020, raising the number of facilities
actors – including oil majors – moved further into the wind
in operation 9% to around 891  SHIP plants. Although many
sector. Manufacturers focused on technology innovation to
technology suppliers reported delays in installation and
continuously reduce costs and achieve an ever lower levelised
construction, some megawatt-scale plants were successfully
cost of energy. In addition, they expanded their work with other
commissioned during the year, including Europe’s largest
researchers to increase wind turbine sustainability during
(10.5 MWth), used to heat agricultural greenhouses.
production and at the end of useful life.

23
 RENEWABLES 2021 GLOBAL STATUS REPORT

04 D
 ISTRIBUTED RENEWABLES 05 INVESTMENT FLOWS
FOR ENERGY ACCESS (DREA)
Distributed renewables have continued to enable energy Global investment in renewable energy capacity increased
access, reaching electricity generation shares as high as 2% in 2020, resisting the COVID-19-induced economic
10% in some countries. crisis.
By the end of 2019, 90% of the global population had gained Global new investment in renewable power and fuels (not
access to electricity, although one-third (2.6  billion people) still including hydropower projects larger than 50  MW) totalled
lack access to clean cooking, relying on mostly traditional use USD 303.5 billion in 2020. Developing and emerging economies
of biomass. Renewables-based electric power systems and surpassed developed countries in renewable energy capacity
clean cooking solutions have played an increasingly important investment for the sixth year running, reaching USD 153.4 billion
role in improving energy access rates, especially in rural and (a smaller margin than in previous years). Investments for the year
remote areas where such access remains low. Stand-alone solar rose 13% in developed countries and fell 7% in developing and
systems and renewables-based mini-grids are often the most emerging countries.
cost-effective way of electrifying off-grid areas in the developing Investment in renewables continued to focus on wind and solar
world, providing power for households and productive uses. power, with solar representing nearly half of global renewable
Options that help reduce the health and environmental impacts energy investment in 2020, at USD  148.6  billion (up 12%).
of the traditional use of biomass include improved biomass Investments fell in all renewable technologies except solar power,
stoves and fuels, biogas, ethanol, solar cookers and, increasingly, with wind power falling 6% to USD 142.7 billion (47% of the total).
renewables-based electric cooking. The remaining technologies continued their downward trend,
After several years of strong growth, the market for renewables- with investment in small hydropower falling to USD  0.9  billion,
based energy access systems was negatively impacted by the geothermal to USD 0.7 billion and biofuels to USD 0.6 billion.
COVID-19 pandemic. Global sales of off-grid solar systems fell COVID-19 economic recovery packages included significant
22% in 2020, with the greatest regional decline in South Asia spending to stimulate further investment in renewables. Around
(51%), while sales in East Africa, the largest market, dipped 10%. 7% of the USD 732.5 billion total announced by 31 governments
Despite the drop in sales, financing for off-grid solar companies to support all types of energy was allocated directly to policies
increased slightly by 1%. While equity funding fell significantly, favouring the production or consumption of renewables. However,
debt and grant funding increased. renewable energy investments outlined in recovery packages
Although many planned renewables-based mini-grid projects were still only around one-sixth the level of investments allocated
were delayed due to the pandemic, new solar mini-grids to fossil fuels.
were commissioned in several countries specifically to power Energy projects represented nearly 60% of all climate finance
healthcare facilities as an emergency response to the crisis. By in 2017 and 2018, averaging USD  337  billion. Climate finance
late 2020, new financing deals were signed for several larger flows from developed to developing countries reached
mini-grid developments across Africa. USD 78.9 billion in 2018, of which USD 12.5 billion was allocated
to projects targeting energy generation from renewable sources.
The clean cooking sector has seen less funding and private
Multilateral climate funds and multilateral development banks
sector involvement than the electricity access sector. However,
play an important role in providing direct support to developing
funding for the 25 largest clean cooking companies increased
countries, while climate finance instruments, such as green
68% in 2019, to USD 70 million. In 2020, several new large-scale
bonds, hit record levels for a second consecutive year, up 1.1% in
funding initiatives were announced for clean cooking in Africa,
2020 to USD 269.5 billion.
where the clean cooking deficit remains the largest. Policy
makers in several countries also have focused on clean cooking, The divestment movement continued its upward trend in 2020,
setting new targets and developing financial support packages. with more than 1,300 institutional investors and institutions worth
nearly USD  15  trillion committing to divesting partially or fully
from fossil fuel-related assets. Investors increasingly have aligned
their portfolios with the emission reduction goals of the Paris
Agreement. However, investment in fossil fuel-related companies
also has grown, and it is difficult to establish a direct link between
divesting from fossil fuels and investing in renewables.

24
06 ENERGY SYSTEMS INTEGRATION
AND ENABLING TECHNOLOGIES
Wind and solar reached record levels in the electricity mix in In 2020, heat pump uptake
2020, while sales of heat pumps, electric vehicles and energy slowed in the Asia-Pacific At least nine countries
storage grew strongly despite the COVID-19 pandemic.
In the power sector, the installed capacity and penetration of
region, while it continued
to increase in North generated
variable renewable electricity sources – mainly solar PV and wind America and Europe. The
heat pump industry was
more than 20%
power – have grown rapidly in many countries. Several power of their electricity from
systems reached record-high shares of instantaneous VRE in characterised by company
solar PV and wind in 2020.
2020 due to lower costs of these renewable technologies and acquisitions, techno-
to the effects of COVID-19 containment measures on electricity logical developments in
markets. refrigerants that have low
global warming potential,
The wider digitalisation of transmission and distribution grids and the emergence of
continued, as did growth in “behind-the-meter” systems. In new solutions integrating heat pumps with other energy devices.
addition, electricity markets were adapted during 2020 to allow
for the participation of ancillary services from wind, solar and While global car sales decreased in 2020, sales of electric cars
battery storage. Flexibility services were procured increasingly (including both battery electric vehicles and plug-in hybrids)
from VRE power plants, flexible sources of demand and virtual resisted the COVID-19-induced downturn with nearly 3  million
power plants. units sold, up 41% from 2019. The share of electric cars in new car
sales worldwide reached 4.6% in 2020, surpassing the 2019 record
Grid infrastructure constraints have become a significant of 2.7%. Meanwhile, around one-third of the two- and three-
bottleneck for the integration of renewables in several locations. wheelers sold were electric, nearly all of them in China. Notable
Large transmission projects also have faced regulatory hurdles. activity in the EV industry during the year included significant
Despite this, major projects were advanced in 2020, driven by reductions in battery costs and automakers’ announcements that
demand for grid capacity from VRE generators. they would shift, partially or fully, to electric production.
In contrast to the power sector, shares of renewables in global The global market for energy storage of all types reached
transport and heating systems remained low in 2020. Integration 191.1  GW in 2020. Mechanical storage in the form of pumped
of renewable energy into road-based transport was advanced hydropower accounted for the vast majority of this capacity,
mainly through vehicle electrification, while heat pumps offer followed by roughly 14.2 GW of electro-mechanical and electro-
untapped potential to enable the use of renewables in the heating chemical storage, and around 2.9 GW of thermal energy storage.
and cooling sector. Along with energy storage, the enabling The energy storage industry saw significant cost reductions,
technologies of heat pumps and EVs support the integration of innovation in battery technologies and increased collaboration in
renewables and contribute to greater flexibility in power systems. the production of renewable hydrogen.
Sales of all three technologies increased in 2020, despite the
onset of the COVID-19 pandemic.

25
 RENEWABLES 2021 GLOBAL STATUS REPORT

07 ENERGY EFFICIENCY, RENEWABLES

AND DECARBONISATION
Integrating renewable energy deployment and energy Between 2013 and 2018, global energy-related CO2 emissions
efficiency measures remains crucial for decarbonising end- grew 1.9%, to nearly 38 gigatonnes. The increase occurred during
use sectors and the energy system as a whole. a period of economic growth – global GDP grew 23% during the
five-year period – but was slowed by improvements in the overall
Renewable energy and energy efficiency have long been known
carbon intensity of GDP. These improvements were due in part
to provide multiple benefits to society, such as lowering energy
to increased renewable electricity production and, to a greater
costs, improving air quality and public health, and boosting jobs
extent, to improved energy efficiency; this occurred despite an
and economic growth. Increasingly, renewables and efficiency are
overall decline in energy efficiency improvements that began
viewed as crucial to reduce carbon emissions. Energy production
in 2015 and that was reinforced by the COVID-19 crisis and low
and use account for more than two-thirds of global greenhouse
energy prices.
gas emissions. Together, renewables and energy efficiency have
made significant contributions to limiting the rise in CO2 emissions. Some measures that apply to end-use sectors – such as
Trends in carbon intensity – measured as energy-based CO 2 building energy codes and the deployment of distributed
emissions per unit of gross domestic product (GDP) – help to renewables, heat pumps, and technologies for electrification
better understand the full impact of both energy efficiency – impact carbon intensity as they can have both an energy
and renewables on the transition to more efficient and cleaner efficiency and a renewable energy component. Other energy
energy production and use. Unlike overall emissions, the carbon efficiency measures can play a role in each sector, including
intensity of GDP reflects technical or structural improvements in digitalisation in the buildings and industry sectors, and vehicle
various sectors. fuels and emission standards in the transport sector. In 2020,
the COVID-19 pandemic impacted the energy efficiency of all
end-use sectors.
Together, renewables and
energy efficiency have made
significant contributions to

limiting the
rise in CO2
emissions.

26
08 FEATURE: BUSINESS DEMAND FOR RENEWABLES
Businesses are increasing their uptake of renewable Corporations meet their needs for low-temperature thermal
energy across power, heating and cooling, and transport energy through renewables-based electrification, renewable
needs. Company membership in business coalitions gases, procurement of renewable district heat, and the direct use
promoting renewable energy procurement surged across of geothermal heat, solar thermal heat and modern bioenergy. By
all sectors. the end of 2020, nearly 900 solar thermal systems were supplying
Several factors incentivise business demand for renewables. industrial process heat, with new projects concentrated in China,
Government policy continues to play a key role, but company- Mexico and Germany. In most cases, corporations produce and
level factors also are becoming prominent. Environmental and consume on-site the energy they need for heating and cooling,
ethical considerations encourage companies to adopt renewable rather than sourcing it from elsewhere.
energy as part of their broader sustainability or emission Corporations in energy-intensive industrial sectors – such as
reduction goals. Renewables also are increasingly associated iron and steel, cement, and chemicals production – use smaller
with lower costs and a variety of risk mitigation opportunities, shares of renewables to meet their energy needs. Still, interest in
thereby driving business demand. Surging membership in renewable energy procurement in these sectors has grown, and
coalitions, such as RE100 and EV100, that promote business business coalitions emerged on both the demand and supply
demand for renewables is also driving corporate uptake. sides in 2020.
Businesses source their electricity from renewables in multiple Businesses source renewable energy for their transport
ways, including by generating it themselves (either on- or off- needs mainly from biofuels, renewables-based electricity, and
site); procuring it from utilities through direct billing; purchasing renewable hydrogen across the road, rail, maritime and aviation
environmental attribute certificates from energy suppliers; and sectors. Electrification of fleet vehicles has become increasingly
signing long-term power purchase agreements with producers. popular, especially among companies operating in the more
Despite a challenging business year, the new renewable energy than 300 zero-emission zones in cities worldwide. However,
capacity that businesses sourced through PPAs increased 18% the COVID-19 pandemic contributed to a 20% drop in sales
in 2020, across nearly all regions. North America accounted and investment in hydrogen-powered transport in 2020, as the
for the majority of the new capacity procured, and Amazon demand for hydrogen fuel cell buses fell.
was the leading corporate power purchaser. Policies to enable
Declining costs have made biofuels an increasingly viable option
cross-border PPAs were under development in Europe. In the
for corporate procurement in maritime shipping, although their
Asia-Pacific region, ongoing challenges to corporate sourcing
use in this sector is marginal. Interest in renewable hydrogen
included regulatory and market barriers and limited or no
and ammonia also increased in the maritime transport sector.
availability of corporate sourcing mechanisms.
In 2020, several aviation companies committed to sourcing
more-sustainable aviation fuels, while others showed interest in
developing electric and hydrogen aircraft.

27
01
City Developments Limited has mapped a pathway to reach its goal of net zero carbon emissions by 2030,
including investing heavily in energy efficiency and targeting 100% renewable energy.
 01

01 GLOBAL
OVERVIEW

he renewable energy story during a crisis year was one

T of resilience and adaptation, yet significant challenges

KEY FACTS remain. During the year, restrictions on movement and

goods as well as the introduction of COVID-19 recovery packages
all had an impact on the production and use of renewable energy.
  Despite the impacts of the COVID-19
Despite suffering during the onset of the pandemic, renewable
pandemic, renewable energy set a record energy saw a record increase of new power capacity in 2020
in new power capacity in 2020 and was globally and was the only source of electricity generation
the only source of electricity generation to to experience a net increase in total capacity. Investment in
register a net increase in total capacity. renewable power capacity increased (albeit slightly) for the third
consecutive year, and corporations continued to break records
  Renewables continued to meet low shares of for sourcing renewable electricity. More countries are turning
final energy demand in the buildings, industry towards electrification of heat with renewables, and although
and transport sectors, where policy support production of transport biofuels decreased, sales of electric
remains crucial to spurring uptake but is vehicles (EVs) expanded as did the linking of EVs to renewable
insufficient. power (to a lesser extent). A wave of commitments to action on
the climate crisis included a carbon-neutrali target by China, while
  For the first time, the number of countries the United States re-joined the Paris Agreement in early 2021.
with renewable energy support policies At the same time, obstacles that have slowed progress in the
did not increase from the previous year. renewables sector in past years persisted during 2020. For the
While renewable energy targets are in place first time ever, the number of countries with renewable energy
in nearly all countries, many countries were support policies did not increase from the previous year. While
not on track to achieve their 2020 targets renewable energy targets are in place in nearly all countries,
in multiple sectors, and many had not yet set many countries were not on track to achieve their 2020 targets in
new targets as their 2020 targets expired. multiple sectors, and many had not yet set new targets as their
2020 targets came to term. Moreover, in COVID-19 recovery
  With the atmospheric concentration of CO2 packages, investment in fossil fuels was six times greater than
rising to record levels even as emissions have for renewable energy.
fallen, it has become increasingly clear that a
structural shift is needed to reach long-
term climate and development goals.
i See Glossary.

29
 RENEWABLES 2021 GLOBAL STATUS REPORT

RENEWABLES IN 2020 in buildings (and to some extent in industry) attracted policy-

maker attention.12 However, the uptake of renewables in both
As governments worldwide instituted lockdowns in 2020 to slow heating and transport remains constrained by insufficient policy
the spread of COVID-19 and to respond to the resulting global support and enforcement and by slow developments in new
health crisis, economies ground to a halt and energy demand technologies (such as advanced biofuels).13
plummeted. Overall, primary energy demand worldwide fell
Distributed renewables for energy access (DREA) systems
around 4% during the year, resulting in a 5.8% drop in global
proved invaluable in many rural and remote communities during
energy-related carbon dioxide (CO 2) emissions – the largest
the early phases of the pandemic, notably in Africa, powering
percentage decrease since World War II.1
health facilities and other essential services through solar PV
Renewable energy reached its highest recorded share in the mini-grids.14 However, measures to contain the virus hindered
global electricity mix in 2020 – an estimated 29% – due in large companies, delayed projects and held back end-customers
part to low operating costs and preferential access to electricity from purchasing new systems.15 Sales of solar lanterns, in
networks during periods of low electricity demand. 2 Data for particular, fell 30% in 2020 compared to 2019 even though they
countries representing more than one-third of global electricity rebounded in the second half of the year.16
demand showed that every month of full lockdown during the
The global population without access to electricity continued
pandemic reduced electricity demand 20% on average, or more
to shrink, although 771  million people (10% of the world’s
than 1.5% on an annual basis. 3
population) still lacked electricity access in 2019 (latest data
In the meantime, more than 256 gigawatts (GW) of renewable available), nearly 75% of them in sub-Saharan Africa.17 However,
power capacity was added globally during the year, surpassing estimates for 2020 suggest that the pandemic led to reversals
the previous record by nearly 30%.4 (p See Table 1.) While the in this trend for the first time since 2013: in Africa, 2% fewer
renewables sector proved to be notably robust during this people (13  million people) had access to electricity in 2020.18
period, the fossil fuel industry largely struggled – especially the Meanwhile, the global population lacking access to clean
global coal and oil industries – due to decreased demand as cookingii increased slightly in 2019 to around 2.6 billion people,
well as difficulties for the oil industry in reaching production with few signs of progress.19 In addition, the pandemic further
agreements within the Organization of the Petroleum Exporting worsened the inequities of lack of energy access, as populations
Countries (OPEC)+ alliancei. 5 without access were more heavily affected during the year. 20
Costs of producing electricity from wind and solar energy
have dropped significantly in recent years. In 2020, the global
weighted average levelised cost of electricity from utility-scale
solar photovoltaics (PV) declined 85% since 2010, while onshore
wind power costs fell 56% during the same period. (p See
Sidebar 6 in Market and Industry chapter.) These declines mean
that for most of the world's population, electricity production
from new renewables is more cost effective than from new coal-
fired power plants. 6 In a growing number of regions, including
parts of China, the European Union (EU), India and the United
States, it has already become cheaper to build new wind or
solar PV plants than to operate existing coal-fired power plants.7
Renewables also are outcompeting new natural gas-fired
power plants on cost in many locations, and are the cheapest
sources of new electricity generation in countries across all
major continents. 8
In contrast to previous years, which had seen some growth, the
share of renewables in the transport sector remained constant. 9
Although biofuels have continued to dominate the renewable
energy contribution in transport, the global EV stock has grown
significantly, increasing opportunities to integrate renewables
in road transport.10 The global market share of EVs remains low
overall, however.11
The uptake of modern renewables for heating and cooling
progressed at a slow pace. Consumption of renewable heat
suffered during the pandemic, and electrification of heating

i Established in 2016, OPEC+ includes the 14 OPEC members as well as 10 additional oil and gas producing countries.
ii The REN21 Global Status Report (GSR) refers to clean and/or efficient cook stoves or fuels as per the methodology of the Multi-Tier Framework.

30
 01

Although analysts widely expected the economic blow in 2020 to By early 2021, more than 300 leading global corporations had
decrease renewable energy investment as much as 10%, the joined the RE100 initiative – committing to using 100% renewable

GLOBAL OVERVIEW
opposite ended up being true. 21 Due to a combination of factors electricity – up from 167 corporations a year before. 32 EV100 and
including policy support, low interest rates, fluctuating oil and gas EP100 both saw growth in membership in 2020, while SteelZero
prices, and longer-term investor perspectives, global investment was launched in December. 33
in new renewable energy capacity (excluding large hydropower Companies also are meeting their heating, cooling and
projects) increased 2% from the previous year, reaching transport needs with renewable energy, although these
USD 303.5 billion. 22 In 2020, global investment in new renewable activities are at a much smaller scale. (p See Feature chapter.)
power and fuel capacity was estimated to be more than twice
In some manufacturing industries, such as pulp and paper
the investment in coal, gas and nuclear power generating plants
and food processing, firms supply relatively high shares of
combined. 23 However, considering all types of energy investmenti,
their heat demand with renewables (mostly bioenergy), while
investment in fossil fuels far outweighed that of renewables. 24
those in energy-intensive industries, such as steelmaking,
At least two countries withdrew support for fossil fuel are exploring activities to decarbonise their energy use with
exploration. Denmark will cease all new oil and gas exploration as renewable hydrogen. 34 (p See Box 1.) By early 2021, at least
part of a larger plan to stop extracting fossil fuels entirely (overseas 2,360 companies had committed to net zero targets, a more
and domestic) by 2050. 25 The United Kingdom announced than four-fold increase since 2019. 35
its intentions to end support for oil, gas and coal projects
The ongoing shift among major energy companies to invest in
overseas “as soon as possible”. 26 Japan also was considering
renewable energy highlights both the cost-competitiveness and
withdrawing support for overseas exploration. 27 Multilateral
public appeal of renewables, in addition to political and investor
development banks dedicated more than USD 13 billion
pressure. The world’s largest oil and gas companies continued
to “cleanii” energy, but at the same time they committed over
to invest in the renewable energy sector in 2020 (as well as to
USD  3  billion to fossil fuels. 28 By early 2021, numerous private
acquire companies already active in the sector) and to invest in
banks, pension funds and insurers also had committed to ending
technologies such as electric mobility and energy storage as
or seriously restricting support for fossil fuels. 29
well as hydrogen production and distribution (although often
Businesses continued to purchase more and more renewable not renewable hydrogen). 36 Even so, major fossil fuel companies
electricity. Corporate sourcing of renewable power set a record still invested heavily in oil and gas extraction projects, and only
in 2020, increasing 18% and reaching more than 23 GW of power a minor share of their overall investments goes to the renewable
purchase agreements (PPAs) signed during the year. 30 Most of energy sector, with some companies expected to miss their own
the installed capacity was solar PV, followed by wind power. 31 “green energy” investment targets. 37 (p See Sidebar 1.)

BOX 1. Renewable Hydrogen in the GSR

In 2020, policy, industry and civil society attention to the

use of renewable hydrogen to reduce demand for fossil
fuels grew rapidly around the world. REN21’s Renewables
Global Status Report (GSR) treats (renewable) hydrogen as
an energy storage technology that is capable of converting
primary renewables into useful forms of energy in key sectors,
including certain industrial processes, maritime shipping and
aviation. As such, readers will find information on renewable
hydrogen distributed throughout the report, most prominently
in the Policy Landscape chapter (Sidebar 5 and Table 5)
and in the Energy Systems Integration and Enabling
Technologies chapter (pages 213 and 215).

i Including upstream/downstream oil, gas and coal supply.

ii “Clean” energy in this case includes renewable energy, energy efficiency, active transport (e.g., walking and cycling) and electric vehicles, but also may include
hydrogen that is produced from fossil fuels.

31
 RENEWABLES 2021 GLOBAL STATUS REPORT

Beyond cost competitiveness and public appeal, awareness

of the multiple co-benefits of renewables increased during the
STRUCTURAL SHIFT NECESSARY
year, including improved public health through reduced pollution, TO REACH CLIMATE AND
increased reliability and resilience, access to modern energy
services and job creation. 38 (p See Sidebar 2.)
DEVELOPMENT GOALS
Even as global emissions decreased in 2020, the concentration
Awareness also increased surrounding equality and inclusiveness
in the energy sector, and the strong business case was reaffirmed of CO2 in the atmosphere continued to rise to record levels,
for increasing gender equality and cultural and ethnic diversity highlighting that a structural shift is necessary to reach long-
in companies. 39 An increasing number of companies joined the term climate targets.44 This was vividly demonstrated at year’s end
Equal by 30 campaign, aiming for more gender equality in the when it became clear that, despite the lockdowns and drop in
“clean energy” sector, specifically through equal opportunities, economic activity, particularly early in 2020, there was no real lasting
pay and leadership.40 By early 2021, the campaign counted at dent in global emissions as some estimates had anticipated.45
least six countries among its signatories (Canada, Finland, Japan, Already by year’s end, while most countries continued to grapple
the Netherlands, Sweden and the United Kingdom).41 with the pandemic, CO2 emissions had strongly rebounded
from their earlier lows, rising in December to levels that were 2%
Overall, commitments towards climate action greatly
higher than a year prior.46
increased during 2020. At least 21 countries and the EU
committed to greenhouse gas emission reduction targets during Despite more interest in net zero targets in 2020, these targets do
the yeari – covering around 48% of global emissions – including not necessarily cover all greenhouse gases or all sectors, nor do they
at least 9 countries committing to net zero emission targets and necessarily lead to greater attention to renewables or to success in
9 committing to carbon-neutral targets in numerous significant meeting renewable energy targets. Only five of the world’s largest
markets, such as China, the EU, the Republic of Korea and member economies in the Group of Twenty (G20) – the EU-27,
Japan.42 (p See Table 4 in Policy Landscape chapter.) By the end France, Germany, Italy and the United Kingdom – had set 2020
of 2020, around 800 cities had committed to net zero emissions – targets to achieve a certain share of renewables in final energy use.47
up sharply from the 100 cities with such commitments by the end Of them, several were clearly not on track to achieve these targets
of 2019.43 (p See Box 2.) by year’s end.48 (p See Figure 1.)

i In 2019, 77 countries joined the Climate Ambition Alliance with an aspirational commitment to net zero carbon emissions by 2050; by early 2021, the country
total reached 121, although not all commitments have been backed by domestic action. The increased ambition and awareness among governments and companies
alike also is being reflected by international organisations, notably the International Energy Agency, which in early 2021 recommended under its new net zero scenario
no further investment in new fossil fuel supply projects and no further final investment decisions for new “unabated coal plants”. See endnote 42 for this chapter.

FIGURE 1.
Renewable Energy Shares and Targets, G20 Countries, 2019 and 2020
Share of renewables in TFEC (%)
50

Share of
40 renewable energy
in TFEC in 2019

Target for
30
renewables in TFEC
for year-end 2020

20
No target for 2020

10

0
a
il

om

a*
Au a

| ina
da

ge s

| ia
7

ly

sia
| Kin y

ss ic o ica

iA *
e

an
do o
az

ud ion
in
an

Fe ore
di
-2

e
c

| e x ic
l
Ita

bi
ra
at
rk
na

an

So ap
nt

ne

Ru ubl Afr
In

Ch
Un gd
Br

EU

ra
Sa rat
St

st
ite Tu

fK
Ca

Fr

J
|
er

M
|

e
d
Un |

Ar
G

ut

d
In
|

ite

|
d

n
|

ia
p

|
Re
|
|

Note: TFEC = Total final energy consumption. Data for Russian Federation and Saudi Arabia are for 2018 and 2017 respectively.
Source: See endnote 48 for this chapter.

32
200
The
share of
80.3 % 80.2 % fossil fuels in 01
final energy demand
Fossil fuels Fossil fuels
barely changed over
100
one decade.

ONGOING CHALLENGES TOWARDS A The share of renewables in TFEC has increased only moderately
due to:
RENEWABLES-BASED WORLD

GLOBAL OVERVIEW
0
 rising global energy demand;
2009 2019
The developments during 2020 highlighted some of the key ongoing
 continuing consumption of and investment Modernin new fossil fuels,
challenges impeding the widespread adoption of renewable
renewables
resulting in fossil fuels meeting most of the increasing demand, and
energy. They include the slow increase of renewables in total final
energy consumption (TFEC), the need for more innovation in some2019  declining traditional use of biomass, which although a positive
11.2 %
sectors, the need for infrastructure development and increased development due to sustainability and health concerns
affordability in some markets, the lack of sufficient policy support (p see Box 3) has meant that as people shift towards modern
and enforcement, and persistent support for fossil fuels. sources of energy, much of this is via fossil fuels.49
As of 2019i, modern renewable energy (excluding the traditional
4.2use% 3.6 %
of biomass) accounted 2.4
for an % 1.0
estimated 11.2% %of TFEC, up
from 8.7% a decade earlier.50 (p See Figure 2.)Biofuels
The largest
for portion
Biomass/solar/ Hydropower Wind/solar/
was renewable electricity (6.0% of TFEC), transport
followed by renewable
geothermal heat biomass/
heat (4.2%) and transport biofuels (1.0%). 51
geothermal/
ocean power

i At the time of publication, global data for TFEC and the contribution of energy sources to meet energy demand were available for the year 2018; values for
2019 are estimates.

FIGURE 2.
Estimated Renewable Share of Total Final Energy Consumption, 2009 and 2019

Exajoules (EJ)
400

11.2 %
Modern
renewables 8.7 % Others
300 8.7 %
11.0 % Others

200
The
share of
80.3 % 80.2 % fossil fuels in
final energy demand
Fossil fuels Fossil fuels
barely changed over
100
one decade.

0
2009 2019
Biofuels for
transport

Wind/solar/biomass/
geothermal/ocean power
2.4% 1.0%

3.6%
Hydropower
2019 Hydropower
Note: Totals may not add up due to rounding. This figure shows a
comparison between two years across a 10-year span. The result of the
economic recession in 2008 may have temporarily lowered the share of
Modern
renewables
4.2%
Biomass/solar/
fossil fuels in total final energy consumption in 2009. The share in 2008
geothermal heat
was 80.7%. 11.2 %
Source: Based on IEA data. See endnote 50 for this chapter.

33
 RENEWABLES 2021 GLOBAL STATUS REPORT

BOX 2. Renewable Energy in Cities

REN21’s Renewables in Cities Global Status Report is an Commitments to decrease greenhouse gas emissions also
annual stock-taking of the global transition to renewable can result indirectly in greater use of renewables citywide. By
energy at the city level. City governments around the 2020, more than 10,500 cities had adopted targets to reduce
world have taken action to accelerate the global uptake of their greenhouse gas emissions, and around 800 cities had
renewables, driven by air pollution concerns, public pressure committed to net zero emissions, with the number of such
and the need to create clean, liveable, climate-resilient and net zero targets increasing roughly eight-fold from 2019. To
equitable communities. achieve these targets, city governments have been leading
Cities are home to 55% of the global population and growing, by example, scaling up on-site renewable energy generation
and they account (directly or indirectly) for more than 80% of (mostly solar PV) and/or procurement for public buildings
global GDP. Urban energy use also has grown significantly in and municipal fleets.
recent decades due to global population growth, urbanisation Achieving urban renewable energy targets depends not
and urban economic activity. By 2018, cities accounted only on political commitment and municipal investment
for around three-quarters of global final energy use, and in renewables, but also on the city’s ability to enable the
cities release a similar share of global energy-related CO2 uptake of renewables city-wide, by other actors. Contrary
emissions. This makes cities high-impact areas for climate to the slow pace at the national level, momentum has been
action, including for decarbonising the energy system and growing for city-level policies that move beyond the power
accelerating renewable energy investments, which help sector to support renewables in heating and cooling, the
cities achieve their own objectives as well as global goals. transport sector, and integrated policy approaches. These
Urban commitments to directly support renewables are include both direct and indirect support policies, municipal
increasing. By the end of 2020, more than 1 billion people – codes and mandates for new buildings, incentives for
25% of the world’s urban population – lived in a city that had retrofitting existing buildings, and bans and restrictions on
a renewable energy target and/or policy (for a total of over fossil fuel use for both the buildings and transport sectors.
1,300 cities), and during the year around 260 cities set new p See Renewables in Cities 2021 Global Status Report, along
targets or passed new policies. This includes more than 830 with the report’s city case studies and cities data pack at
cities in 72 countries that had adopted targets for renewables, https://www.ren21.net/cities.
with more than 600 cities setting targets for 100% renewable
Source: See endnote 43 for this chapter.
energy (with varying target dates).

34
 01

BOX 3. Sustainability in the GSR

GLOBAL OVERVIEW
Much of the support for renewables to-date has focused Critically examining the environmental, social and economic
on the social and economic acceptance of the energy impacts of renewables along the value chain, using a
transition, including the roles of political leadership, comprehensive approach and having an informed and
financial measures and market confidence. Accelerating transparent debate is necessary to address perceived
the scale-up of renewables also means fostering public tensions and challenges in shifting to a renewable-based
acceptance of renewable energy systems and investigating energy system. Future editions of the GSR will address the
the key challenges to acceptance that they are facing. The topic more holistically, as will additional projects from REN21.
sustainability of renewable energy technologies, infrastructure
i See, for example, L. Bennun et al., Mitigating Biodiversity Impacts
and supply chains is a key emerging issue. While there is no Associated with Solar and Wind Energy Development (Gland,
Switzerland: IUCN, 2021), https://portals.iucn.org/library/sites/
one definition of sustainability within the renewable energy
library/files/documents/2021-004-En.pdf.
context, this concept is usually determined by environmental,
Source: See endnote 49 for this chapter.
social and economic dimensions.
Even though the development of renewable energy is
understood as essential for tackling climate change, the
recent and planned expansion of renewables has raised
notable sustainability concerns. Some of these issues have
a longer history, such as considerations around the impacts
that hydropower reservoirs and dams have on ecosystems
and host communities and, in recent years, the debate
on the role of bioenergy, especially in the context of the
unsustainable use of biomass. More recently, as solar and
wind power projects have become more numerous, issues
around their long-term sustainability have come into the
spotlighti. In addition, the resource requirements and lifecycle
emissions of renewable energy technologies have received
increasing attention.

The share of renewable the challenge that renewables faced in gaining greater TFEC
Renewable energy energy has increased shares. 55 (p See Figure 3.) This slow progress points to the
accounted for only moderately each complementary and fundamental roles of energy conservation,

only year despite tremendous

growth in some
energy efficiency and renewables in reducing the contributions
of fossil fuels in meeting global energy needs and reducing
one-quarter renewable energy sectors.
Total demand for modern
emissions.
Efficiency and conservation reduce overall demand for (additional)
of the total increase in renewables grew strongly energy to achieve the same energy services, making it easier for
energy demand between (15.1 exajoules, EJ) during renewables to attain a larger share of the total. However, energy
2009 and 2019. the 10-year period 2009- efficiency also faced challenges in 2020. The rate of energy
2019, rising around 4.4% intensity improvements had been declining since 2015, and in
annually. 52 Total final 2020 the global crisis coupled with low energy prices resulted
energy consumption grew 60.9  EJ, or around 1.8% annually. 53
in only an estimated 0.8% improvement in energy intensity – half
Thus, renewable energy increased at more than twice the rate
the rate of the previous two years. 56
of TFEC, accounting for 25% of the total increase in energy
demand. 54
However, this means that other energy sources (mainly fossil
fuels, which grew 1.7% annually) accounted for 75% of the total
increase in energy demand during this period, highlighting

35
 RENEWABLES 2021 GLOBAL STATUS REPORT

FIGURE 3.
Estimated Growth in Modern Renewables as Share of Total Final Energy Consumption Between 2009 and 2019

Worldwide the growth in total Only one quarter of the increase

final energy demand continued. was covered by renewable energy.

TFEC (Exajoules) 75 %
400 381 Fossil fuels,
320 nuclear,
traditional
300 biomass

25 %
200 Modern
renewables
100

0
2009 2019

Source: Based on IEA data. See endnote 55 for this chapter.

As in past years, the highest share of renewable energy is in electrical Targets for renewables are not only more numerous but also more
applications (excluding electricity for heating, cooling and transport), ambitious for the power sector. While renewable energy targets are
such as lighting and appliances.57 However, these end-uses account in place in nearly all countries, many countries were not on track
for only 17% of TFECi.58 Energy use for transport represents some to achieve their 2020 targets in multiple sectors, and many had
32% of TFEC, and has the lowest share of renewables (3.4%).59 The not yet set new targets as their 2020 targets were coming to term.
remaining thermalii energy uses, which include space and water
Targets also were more often achieved and set for the power
heating, space cooling and industrial process heat, accounted for
sector than for heating and cooling or transport. (p See Figure 11
more than half (51%) of TFEC; of this, some 10.2% was supplied
in Policy Landscape chapter.) However, many jurisdictions
by renewables.60 Increasing the renewable share in transport and
announced emission reduction targets during the year, which
thermal end-uses is necessary to reach a higher share of renewable
could support increasing the renewable share in these sectors
energy in overall TFEC.61 (p See Figure 4.)
where the targets are economy-wide.65 Also, many countries have
Although costs for most renewable energy technologies have submitted more ambitious climate pledges across sectors for
fallen (some precipitously, such as for solar PV and onshore wind 2030 through their updated Nationally Determined Contributions
power), innovation is still needed to enable the widespread (NDCs) towards reducing emissions under the Paris Agreement.66
adoption of renewables in harder-to-decarbonise sectors, such as In contrast to previous years, the number of countries with
energy-intensive industrial processes and long-haul transport.62 renewable energy support policies did not increase in 2020iii.67
The integration of variable renewable energy sources (such as solar
The number of countries with mandates for renewable heat also
and wind) into existing power systems could be further enabled by
did not grow, and policy examples for renewable energy support
expanded and modernised grid infrastructure, further cost declines
in industry remained scarce. No new countries added regulatory
in energy storage, and advances in new business models and
incentives or mandates for renewables in transport, although
market design that allow electricity supply to flexibly meet demand.63
some countries that already had mandates added new ones or
In addition, affordability in some markets can be hampered by
strengthened existing ones. Only three countries had a policy
various elements, such as higher labour costs, permitting costs, land
directly linking renewables and EVs by year's end, with Japan
constraints, availability of renewable resources, lack of favourable
newly joining Austria with a similar incentive for charging EVs
policy frameworks and infrastructure issues.64
with renewable electricity, alongside Germany with its policy
Another key reason for the low penetration of renewables is the supporting renewable-based charging infrastructure.68 Policies
persistent lack of supporting policies and policy enforcement, supporting renewable hydrogen also remained rare. (p See
particularly in the transport and heating and cooling sectors. Table 5 in Policy Landscape chapter.)

i Electrical applications account for a higher portion of primary energy consumption. See Glossary for definitions.
ii Applications of thermal energy include space and water heating, space cooling, refrigeration, drying and industrial process heat, and any use of energy other than
electricity that is used for motive power in any application other than transport. In other words, thermal demand refers to all end-uses of energy that cannot be
classified as electricity demand or transport.
iii However, policy support increased at the local level, where city governments have continued to take action to accelerate the global uptake of renewable energy
to create clean, livable and equitable cities and have had a particular impact in the uptake of renewables in buildings and transport. Overall, more than 1 billion
people lived in a city with a renewable energy target and/or policy in 2020. (p See Box 2.)

36
 01

FIGURE 4.
Renewable Energy in Total Final Energy Consumption, by Final Energy Use, 2018

GLOBAL OVERVIEW
Thermal
51% Transport
32% Power
17%

10.2% 5.7% 3.4% 0.8% 27.1%

Renewable Non-renewable Renewable Non-renewable Renewable
energy electricity energy electricity energy

7.0% 3.1%
Modern bioenergy Biofuels

1.1%
2.1% Solar thermal and 0.3% Renewable
Renewable electricity geothermal heat Renewable electricity electricity

Note: Data should not be compared with previous years because of revisions due to improved or adjusted methodology.
Source: Based on IEA data. See endnote 61 for this chapter.

In addition, fossil fuel subsidies remain a persistent challenge from Japan, the Republic of Korea, France, Germany and India,
for renewable energy. Despite calls by world leaders, leading nearly all of which was directed towards developing and emerging
economists, international organisations and non-governmental countries.74 Funding from private banks for fossil fuel projects also
organisations for governments to use COVID-19 recovery efforts has increased annually since the signing of the Paris Agreement
to advance the phase-out of fossil fuel subsidies, this support in 2015, totalling USD 2.7 trillion between 2016 and 2019.75
remained in the hundreds of billions of dollars (nearly USD 500
Despite international calls to “build back better”ii from the
billion as of 2019), far above the support for renewables.69 In
COVID-19 crisis, the majority of energy-related recovery funds
many countries, investment in new fossil fuel production and
were either directly or indirectly in support of fossil fuels.76
related infrastructure continued. Although some countries were
(p See Figure 49 in Investment chapter.) Governments around
phasing out coal, others invested in new coal-fired power plants,
the world announced at least USD  732.5  billion in energy-
both domestically and abroad. Similar to the previous year, in
2020 many coal-fired plants announced closures in Europe and related stimulus during 2020, and some stimulus packages
the United States, where almost no new plants had been planned included incentives for renewables; however, as of April 2021 only
for a few years and decommissioning has been accelerating, around USD  264  billion (36%) of the total amount provided by
although some new plants began operating during the yeari.70 governments globally was for renewables, whereas more than
Most of the still-operating, new and planned coal plants were USD 309 billion was allocated to fossil fuels, although the shares
located in developing and emerging Asia.71 of funds for “clean” energy versus fossil fuels varied by region
and country.77 In some cases, coal was explicitly supported in
During the first half of 2020, global net coal power capacity fell
recovery packages, such as in Poland, which seeks to maintain
for the first time in history, as decommissioning outpaced new
coal operations until 2049.78
installations.72 However, by year’s end a steep increase in new
coal capacity in China offset global retirements, resulting in the The following sections discuss key developments in renewable
first annual increase in global coal capacity since 2015.73 In line energy in the sectors of buildings, industry and transport, followed
with past years, public finance from China funded by far the largest by a discussion on renewable power capacity and renewable
amount of coal capacity in other countries, followed by funding electricity generation.

i For example, in the Czech Republic and in Germany.

ii “Build back better” was a term adopted by the international community in the Sendai Framework for Disaster Risk Reduction 2015-2030.

37
 RENEWABLES 2021 GLOBAL STATUS REPORT

SIDEBAR 1. Oil and Gas Suppliers and the Renewable Energy Transition

The year 2020 was challenging for the oil and gas industry. Eni and Repsol are both targeting 15 GW by 2030, Equinor is
Demand disruption due to the COVID-19 crisis and an oil price targeting 12-16 GW by 2035 and Shell has an annual investment
war between OPEC and the Russian Federation combined to target of USD  2-3  billion in renewable energy and hydrogen
create oversupply and plunging prices. Conventional oil and gas (although not necessarily produced from renewables). Some
suppliers increasingly are feeling the impetus to participate in companies – such as Repsol, Shell and Total – also link
the renewable energy transition in order to remain competitive, executive remuneration to emission reduction measures. On
and due to pressure from energy users and investors. the other hand, US-based oil and gas giants Chevron and
ExxonMobil do not have any renewable energy targets, and the
In many parts of the world, public sentiment is rapidly
emissions intensity reduction targets they do have are short-
turning against fossil fuels. Public and private investors
term and less ambitiousii. The difference in their approaches
alike are pulling money out of fossil fuel companies, with
reflects the divergent policy priorities and shareholder interests
institutional investors worth nearly USD 15 trillion committed
in the United States and Europe so far, although these trends
to divestment as of early 2021. (p See Investment chapter.)
may be changing. In May 2021, 61% of Chevron shareholders
While the transition away from fossil fuels is most visible
voted to cut Scope 3 emissions – emissions arising from the
in the power sector, it has been much slower in harder-to-
use of the company's products – and ExxonMobil lost two
decarbonise sectors such as industrial heat and heavy-duty
board seats to a climate activist hedge fund.
transport, where oil and gas are more heavily embedded.
Oil and gas companies can help advance the energy
Major oil and gas companies have used a variety of strategies
transition by reallocating their significant capital to address
to try to position themselves as key players in the energy
the investment gap facing the renewable energy sector.
transition. Many have sought to signal a shift in priorities
However, some companies still hesitate to diversify much
through their communications and public relations activities,
into renewable energy and remain more inclined to protect
including rebranding efforts. BP spearheaded the trend when it
their core businesses. Chevron, ExxonMobil and Shell, for
rebranded itself as “Beyond Petroleum” from “British Petroleum”
example, have started sourcing renewable electricity to
in 2001. A host of other companies followed suit: GDF (Gaz de
power their oil and gas operations by signing long-term PPAs
France) Suez became ENGIE in 2015, Danish Oil and Natural
with renewable energy companies, a move that lowers their
Gas (DONG Energy) became Ørsted in 2017, Statoil became
emission intensities but may not greatly impact their absolute
Equinor in 2018, Gas Natural Fenosa became Naturgy in 2018,
emissions. Chevron and ExxonMobil also are mostly allocating
and Total became TotalEnergies in 2021. In a similar vein, the
their energy transition funds (roughly 3-4% of their total capital
chief executive officer of Royal Dutch Shell communicated to
expenditures) to research and development of technologies
investors in 2018 that the company is no longer an oil and gas
like carbon capture and storage, nuclear fusion reactors, EV
company, but rather an “energy transition company”.
charging infrastructure, battery storage and advanced biofuels.
While Ørsted has gone further than name change, transitioning
At the same time, other oil and gas majors have invested in
from an oil and gas company to a large player in renewable
renewables either by acquiring stakes in renewable energy
power (predominantly offshore wind), others are still at early companies or by diversifying their core businesses towards
stages in their transitions. By the end of 2020, European majors renewables. For example, in 2011 Total purchased a 60%
BP, Eni, Equinor, Repsol, Shell and Total had all announced net
zero emission targets for 2050, albeit with vast differences
in coverage and ambition. While BP, Eni and Equinor have
committed to absolute reductions in emissions, Repsol,
Shell and Total aim to cut their emission intensities instead,
making it possible for them to meet their targets without
having to actually cut fossil fuel production. Reflecting these
differences, BP announced in 2020 that it aims to slash oil and
gas production 40%i by 2030 from 2019 levels, while Shell
revealed in early 2021 that it had committed far more to oil and
gas exploration and production than to renewables. However,
in May 2021, Shell was ordered by a Dutch court to reduce
carbon dioxide emissions (including emissions arising from the
use of its products) 45% by 2030, relative to 2019 levels.
Each of these companies also has intermediate targets to
invest in renewables or to expand their own renewable energy
(mostly power) capacities. BP aims for 50 GW by 2030, Total
plans to install 35 GW of renewable power capacity by 2025,

38
 01

GLOBAL OVERVIEW
majority stake in US solar company SunPower in a Despite changing headwinds, many forces motivate oil and
USD  1.4  billion deal. In 2017, BP acquired a 43% stake in gas companies to continue with business as usual. As of
European solar developer Lightsource to create Lightsource 2019, these companies had collectively invested less than
BP, and later increased its stake to 50% in 2019. In 2018, Shell 1% of their total capital expenditure in activities outside their
acquired 44% of US solar power firm Silicon Ranch and made core business areasiii, with the leading companies spending
an equity investment of USD  20  million in India’s distributed on average around 5% on projects outside core oil and gas
renewable utility company Husk Power Systems. supply. (p See Figure 5.) Companies like BP and Shell maintain
In terms of installed renewable energy capacity, Total and BP membership in industry associations that lobby against climate
led in 2020 with 3  GW and 2  GW respectively, followed by action. Moreover, provisions of international trade pacts like
Repsol at 1.3 GW, Shell at 0.9 GW, Equinor at 0.5 GW and Eni the Energy Charter Treatyiv protect the fossil fuel industry
at 0.2 GW. Companies such as BP, Chevron, Equinor, Total and at the expense of the renewable energy sector, and global
Unocal have begun making forays into the geothermal energy post-COVID recovery packages have tended to favour fossil
and offshore wind power sectors, which are readily accessible fuel industries over renewables. (p See Sidebar 3 in Policy
by oil and gas majors and present organic growth opportunities. Landscape chapter.)

i BP’s commitment does not, however, include production from Rosneft, the Russian oil and gas company of which it holds a major share. This means that
nearly 30% of BP’s carbon emissions (Rosneft’s share of emissions in 2019) would remain unaffected by its net zero ambition. See endnote 37 for this chapter.
ii Chevron has a 40% emissions intensity reduction target in oil production and 26% in gas production by 2028 (relative to the 2016 baseline), while
ExxonMobil has a 15-20% upstream emissions intensity reduction target by 2025.
iii Activities outside core business areas may include any ventures outside exploration and production for oil and gas companies, with the exact definition
differing across companies. Renewable energy projects are likely to form a small proportion of such activities, however the exact proportion is unknown
due to lack of disaggregated reporting by oil and gas majors.
iv The Energy Charter Treaty is a multilateral agreement for energy co-operation, enforced under international law since 1998. One of its provisions protects
foreign investments from policy changes in host countries, and effectively allows fossil fuel companies to sue national governments for climate action and
seek compensation when their interests are threatened. Talks on reforming the treaty are ongoing. For details, see sources in endnote 37 for this chapter.

FIGURE 5.
Spending on Renewable Energy versus Total Capital Expenditure, Selected Oil and Gas Companies, 2020

Eni 5.7 Eni was Total capital expenditure

0.1 the only oil and gas
company that reported
Equinor 9.8 renewable energy Capital expenditure
0.4 spending data on renewable energy
for 2020
Chevron 8.9 Capital expenditure
0.5 on low-carbon solutions

BP 14.1 Capital expenditure

on renewable energy
0.8 and power
(including fossil-based
Shell 17.8 generation)
0.9
ExxonMobil 21.4
1.1
Total 15.5
1.8

0 5 10 15 20 Capital expenditure (billion USD)

Note: Oil and gas companies do not explicitly report on renewable energy spending in their financial statements. Eni was the only company that
provided this number for 2020. Equinor, Chevron, BP and ExxonMobil conflate renewable spending with environmental or low-carbon spending in
general. Total and Shell conflate renewable spending with spending on power generation, including fossil-based generation.
Source: See endnote 37 for this chapter.

39
 RENEWABLES 2021 GLOBAL STATUS REPORT

TABLE 1.
Renewable Energy Indicators 2020
2019 2020

INVESTMENT
New investment (annual) in renewable power and fuels1 billion USD 298.4 303.5

POWER
Renewable power capacity (including hydropower) GW 2,581 2,838
Renewable power capacity (not including hydropower) GW 1,430 1,668
Hydropower capacity 2 GW 1,150 1,170
Solar PV capacity 3
GW 621 760
Wind power capacity GW 650 743
Bio-power capacity GW 137 145
Geothermal power capacity GW 14.0 14.1
Concentrating solar thermal power (CSP) capacity GW 6.1 6.2
Ocean power capacity GW 0.5 0.5

HEAT
Modern bio-heat demand (estimated)4 EJ 13.7 13.9
Solar hot water demand (estimated) 5
EJ 1.5 1.5
Geothermal direct-use heat demand (estimated)6 PJ 421 462

TRANSPORT
Ethanol production (annual) billion litres 115 105
FAME biodiesel production (annual) billion litres 41 39
HVO biodiesel production (annual) billion litres 6.5 7.5

POLICIES 7
Countries with renewable energy targets # 172 165
Countries with renewable energy policies # 161 161
Countries with renewable heating and cooling targets # 49 19
Countries with renewable transport targets # 46 35
Countries with renewable electricity targets # 166 137
Countries with heat regulatory policies # 22 22
Countries with biofuel blend mandates 8
# 65 65
Countries with feed-in policies (existing) # 83 83
Countries with feed-in policies (cumulative)9 # 113 113
Countries with tendering (held during the year) # 41 33
Countries with tendering (cumulative)9 # 111 116

1 Data are from BloombergNEF and include investment in new capacity of all biomass, geothermal and wind power projects of more than 1 MW; all hydropower
projects of between 1 and 50 MW; all solar power projects, with those less than 1 MW estimated separately; all ocean power projects; and all biofuel projects
with an annual production capacity of 1 million litres or more. Total investment values include estimates for undisclosed deals as well as company investment
(venture capital, corporate and government research and development, private equity and public market new equity).
2 The GSR strives to exclude pure pumped storage capacity from hydropower capacity data.
3 Solar PV data are provided in direct current (DC). See Methodological Notes for more information.
4 Includes bio-heat supplied by district energy networks and excludes the traditional use of biomass. See Reference Table R1 in the GSR 2021 Data Pack and related
endnote for more information.
5 Includes glazed (flat-plate and vacuum tube) and unglazed collectors only. The number for 2020 is a preliminary estimate.
6 The estimate of annual growth in output is based on a survey report published in early 2020. The annual growth estimate for 2020 is based on the annualised
growth rate in the five-year period since 2014. See Geothermal section of Market and Industry chapter.
7 A country is counted a single time if it has at least one national or state/provincial target or policy. See Table 6 and Reference Tables R3-R11 in the GSR 2021
Data Pack.
8 Biofuel policies include policies listed both under the biofuel obligation/mandate column in Table 6 and in Reference Table R8 in the GSR 2021 Data Pack.
9 Data reflect all countries where the policy has been used at any time up through the year of focus at the national or state/provincial level.
See Reference Tables R10 and R11 in the GSR 2021 Data Pack.
Note: All values are rounded to whole numbers except for numbers <15, biofuels and investment, which are rounded to one decimal point.
FAME = fatty acid methyl esters; HVO = hydrotreated vegetable oil.

40
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TABLE 2.
Top Five Countries 2020

GLOBAL OVERVIEW
Annual Investment / Net Capacity Additions / Production in 2020
 

Technologies ordered based on total capacity additions in 2020.

1 2 3 4 5
Solar PV capacity China United States Vietnam Japan Germany
Wind power capacity China United States Brazil Netherlands Spain or Germany
Hydropower capacity China Turkey Mexico India Angola
Geothermal power capacity Turkey United States Japan – –
 oncentrating solar thermal
C
power (CSP) capacity China – – – –

Solar water heating capacity China Turkey India Brazil United States
Ethanol production United States Brazil China Canada India
Biodiesel production Indonesia Brazil United States Germany France

Total Power Capacity or Demand / Output as of End-2020

1 2 3 4 5
POWER
Renewable power capacity
China United States Brazil India Germany
(including hydropower)
Renewable power capacity
China United States Germany India Japan
(not including hydropower)
Renewable power capacity per
Iceland Denmark Sweden Germany Australia
capita (not including hydropower)1
Bio-power capacity China Brazil United States Germany India

Geothermal power capacity United States Indonesia Philippines Turkey New Zealand
Hydropower capacity 2
China Brazil Canada United States Russian Federation
Solar PV capacity China United States Japan Germany India
Concentrating
 solar thermal
power (CSP) capacity Spain United States China Morocco South Africa

Wind power capacity China United States Germany India Spain

HEAT
Modern
 bio-heat demand in
United States Germany France Italy Sweden
buildings

Modern
 bio-heat demand
Brazil India United States Finland Sweden
in industry

Solar
 water heating collector
capacity 2 China Turkey India Brazil United States

Geothermal heat output3 China Turkey Iceland Japan New Zealand

1 Per capita renewable power capacity (not including hydropower) ranking based on data gathered from various sources for more than 70 countries and on 2019
population data from the World Bank.
2 Solar water heating collector ranking for total capacity is for year-end 2020 and is based on capacity of water (glazed and unglazed) collectors only. Data from
International Energy Agency Solar Heating and Cooling Programme.
3 Not including heat pumps.
Note: Most rankings are based on absolute amounts of investment, power generation capacity or output, or biofuels production; if done on a basis of per capita,
national GDP or other, the rankings would be different for many categories (as seen with per capita rankings for renewable power not including hydropower and
solar water heating collector capacity).

41
 RENEWABLES 2021 GLOBAL STATUS REPORT

BUILDINGS
Buildings historically have accounted for around 33% of final
energy use, a share that was relatively stable in the decade
leading up to 2020.79 Renewable energy meets a growing share
of final energy demand in buildings, although it remains less than
15% and has risen slowly overall. 80 Increases in renewable energy
consumption are most noticeable in electricity use, whereas
heating with renewables is rising more slowly. 81 Bioenergy
remains the global front-runner in supplying renewable heat to
buildings, while the use of renewable electricity to meet heating
loads (i.e., electrification) is rising rapidly and already covers the
full renewable contribution to cooling demand. 82
The COVID-19 pandemic impacted energy use in the buildingsi
sector – at their peak in April 2020, partial or full stay-at-home
orders were active in countries responsible for around 55% of
global primary energy demand. 83 As a result of these restrictions,
millions of people began working from home. This shifted energy
use, particularly electricity demand, away from industrial activity,
transport and commercial buildings and towards residential cooling, water heating and cooking – account for around 77%
buildings. 84 The global impact on energy demand in 2020 was not of global final energy demand in buildings.94 The remaining 23%
known at the time of publication; however, first estimates suggest is electrical end-uses, which comprise lighting, appliances and
that remote work could have contributed to a net reduction in other uses unrelated to heating or cooling. 95
building energy consumption in 2020. 85
Already, most of the world’s cooling demand is supplied by
The sector is a significant contributor to global energy-related electricity. 96 Meanwhile, the demand for cooling has continued to
CO2 emissions. 86 Prior to the pandemic, this share was 28%, with grow rapidly in emerging countries, notably in Sub-Saharan Africa
significant regional variations, and was increasing steadily, driven and in Southeast Asia. 97 However, the world’s average cooling
mainly by growth in indirect emissions from electricity generation load is met mainly by less-efficient models of air conditioner
and from production of heat consumed in buildings. 87 compared to the most efficient technology available. 98
Population and building floor area are typical indicators that Electricity also meets a rising proportion of the world’s heat
have propelled past trends in global building energy use. 88 In demand in buildings, having increased from around 9.6% in
the decade leading to 2020, growth in both indicators exceeded 2009 to 11.7% in 2019. 99 As the share of renewable electricity in
any reductions in demand resulting from energy efficiency the global power system continues to grow, electrification has
measures, leading to around a 1% annual increase in building increasingly emerged as the preferred route to decarbonise
energy consumption. 89 However, growth in both energy demand heating systems in buildings.100
and CO2 emissions was lower than the rise in population and
Total energy demand for heating and cooling grew at around
building floor area, underlining a gradual decoupling and overall
the same rate as building energy use (1% per year) between 2009
improvement in the energy and carbon intensity of building
and 2019.101 It was outpaced by the growth of renewable heating
operations. 90 Increased use of renewables was responsible for an
and cooling in buildings over the same period (around 6%).102
estimated 15% of this improvement across all sectors. 91
Chief among the factors for this increase was the use of renewable
Renewables are the fastest growing energy source for buildings, electricity for heating (and cooling), while modern bioenergyiv
rising 4.1% annually on average between 2009 and 2019ii. 92 use has stayed relatively stable.103 However, the renewable
Despite this growth, renewables met only an estimated 14.3% energy share of heating demand grew from only around 8% to
of total energy demand in buildings in 2019, up from 10.5% in nearly 11% over the same decade, underscoring the importance
2009. 93 Energy use in buildings can be split into two basic of energy efficiency in enabling higher shares of renewables.104
needs. Thermal energyiii needs – including space heating and (p See Figure 6.)

i “Buildings” in the GSR refers to the activities and energy used in building operation and maintenance, and does not include manufacturing, transport or use
of building materials, or energy use in construction activities.
ii Due to data availability and publication dates for comprehensive datasets, the most recent data available for energy consumption are in the year 2018.
Throughout this section, estimates are made for the year 2019.
iii Includes electricity for heating and cooling. The GSR considers all electricity used for heating and cooling to contribute to the final heating and cooling de-
mand in each end-use sector, rather than to the respective final electricity demand. In order to determine total electricity consumption, demand of
electrical end-uses and electricity for heating and cooling should be summed. See Methodological Note.
iv The traditional use of biomass for heat involves burning woody biomass or charcoal, as well as dung and other agricultural residues, in simple and inefficient
devices to provide energy for residential cooking and heating in developing and emerging economies. Modern bioenergy is any production and use of
bioenergy that is not classified as “traditional use of biomass”.

42
 01

FIGURE 6.
Renewable Energy Contribution to Heating in Buildings, by Technology, 2009 and 2019

GLOBAL OVERVIEW
7.8 %
Share of renewables in
2009 2019 10.4
Share of renewables in
%

building heat demand building heat demand

3.0 EJ 4.3 EJ

4.2
Modern
EJ 1.7 EJ Renewable electricity
for heat
Modern
bioenergy

bioenergy

1.5 EJ
Solar thermal heat
0.5 EJ
0.2 EJ Geothermal 0.6 EJ
heat

0.2 EJ 0.4 EJ
Renewable district heat

Note: Energy demand is reported in exajoules (EJ). Includes space heating, space cooling, water heating and cooking. Renewable district heat is virtually all
supplied by bioenergy. Totals may not add up due to rounding.
Source: Based on IEA data. See endnote 104 for this chapter.

Although the global renewable heating and cooling share Solar thermal and geothermal energy together contributed
in buildings remains low, some countries and regions have some 2.2% of heat demand in buildings in 2019, up from 0.8%
achieved relatively higher shares. In the EU, a global leader in in 2009.114 Globally, demand for new solar thermal systems
this area, renewable energy accounted for more than 21% of contracted slightly in 2020, and the impact of existing policy had a
total heating and cooling needs (including industrial process greater effect than the general impact of the pandemic, notably in
heat) in 2018 (latest data available).105 Certain Baltic and Nordic China (the global leader).115 China was similarly the world’s largest
countriesi supply more than 50% of their building heat demand and fastest-growing market for direct consumption of geothermal
with renewables.106 heat in buildings, growing 21% annually during 2015-2020, while
Demand for cooling is the most rapidly growing energy end- the runners-up (Turkey, Iceland and Japan) grew 3-5%.116 Overall,
use in buildings.107 Sales of cooling devices are growing fastest consumption of solar and geothermal heat sources has grown
in developing and emerging countries.108 As most cooling is more rapidly (each up around 11% per year) than bioenergy use in
supplied by electric devices, the contribution of renewables to recent years, although starting from a small base.117
meeting this demand depends largely on the prevailing electricity After bioenergy, the use of renewable electricity for heat
fuel mix; however, significant regional variations exist.109 provided the second largest renewable energy contribution to
The global mix of renewable energy technologies supplying heat building heat demand at around 3.2% in 2019, up from 2.0% in
to buildings is gradually shifting. Modern bioenergy has long 2009.118 Over this period, electricity contributed more than one-
delivered the largest amount of renewable heat to buildings, third of the overall demand growth for renewable building heat
responsible for around half of all renewable heat consumption.110 – the most of any renewable energy source.119 However, most of
Bioheat typically is produced in wood-burning furnaces or the increase was due to the growing share of renewables in the
combusted and delivered via district energy networks.111 In 2019, global electricity supply, rather than to rising electrification of
bioheat met around 4.6% of total heat demand in buildingsii.112 heating in buildings.120 In total, the global share of all electricity
Its role is shrinking, however, as solar thermal heat, geothermal use in final energy consumption of buildings grew from 28% in
heat and renewable electricity for heat are expanding and 2009 to an estimated 32% in 2019, an increase in global share
gaining shares.113 even as final energy consumption rose.121

i As of 2019, these included Iceland, Sweden, Latvia, Finland and Estonia. See endnote 106.
ii When accounting for bioenergy delivered by district heating networks, the share rises to around 5%.

43
 RENEWABLES 2021 GLOBAL STATUS REPORT

Renewable electricity supplies heat to buildings in various ways, overall renewable share
notably through electric radiators or highly efficient electric heat
pumps. Major global markets for electric heat pumps in China,
in national power grids.137
Use of solar energy for
Policies
Japan, Europe and the United States grew in 2020, continuing cooking is also rising: subsidising the
a multi-year acceleration.122 Government policy related to heat
pumps also is expanding, with several countries setting targets
by early 2021, more
than 14 million people
use of fossil fuels
for installations of the technology while also pledging to increase had benefited from the for heating continue
their renewable power capacities.123 4 million solar cookers to clash with those that
that had been distributed encourage the uptake of
Total electrification of heating is garnering increasing policy attention
around the world.138 renewables.
as well. In 2020, electrification of heat was prominently pursued in
the United States, continuing a trend from 2019.124 US states such Electricity is the fastest
as Colorado, Maine, Michigan, Nevada and New Jersey released growing energy source in buildings, with demand up 2.2% annually
plans to address climate change that targeted “all-electric” buildings, between 2009 and 2019.139 Renewable electricity is delivered to
mandated heat pump installations and/or cited electric heating as buildings both from centralised plants by the electricity grid, and
a way to achieve their climate goals.125 In Australia, the Australian by distributed systems, depending on the location.140 Although
Capital Territory committed to supporting numerous all-electric the penetration of distributed systems is growing, the global
residential and business developments, some of which included the contribution of renewables to electricity demand in buildings is
choice to participate in community solar projects.126 largely dependent on the prevailing local electricity mix in the
grid.141 In 2020, the renewable share of electricity production
During the year, attention grew on the use of hydrogen for
was around 29%, up from 20% in 2010.142 (p See Power section
heating buildings. Communities in Canada and the United
in this chapter.)
Kingdom announced pilot projects to blend hydrogen with fossil
gas in gas distribution networks to provide heat to buildings.127 As Distributed renewables also provide electricity access to
part of its Hydrogen Strategy, the EU is conducting pilot projects growing shares of the population in developing and emerging
to analyse the potential to replace fossil gas boilers with hydrogen economies.143 As of mid-2020, more than 100 million people had
boilers.128 At the same time, numerous studies from research gained access to basic residential electricity services through the
organisations and think tanks found that using hydrogen for home use of solar lighting and solar home systems alone.144 In addition,
heating could be less energy efficient and more cost intensive as of March 2020, 87% of operational mini-grids were providing
than electrification, most notably with electric heat pumps.129 renewables-based electricity access, with solar PV as the fastest
Moreover, in early 2021 a coalition spanning businesses and civil growing technology for mini-grids.145
society organisations sent a letter to the European Commission Policy attention to stimulate renewable energy uptake in
asking it to prioritise renewables and energy efficiency over buildings is lacking on a global scale, particularly related to
hydrogen for building heat.130 heating end-uses.146 New or updated financial incentives in 2020
District energy networks can efficiently meet urban heating were introduced only in Europe, and included the Netherlands’
and cooling needs; however, these systems currently account for incentive scheme that was expanded to include renewable heat
just 6.7% of heat demand in buildings.131 Moreover, the low global and the United Kingdom’s extension of its funding programme
share of renewable energy in these networks (5.6%) means that to retrofit buildings with renewables-based heating systems.147
only 0.4% of the world’s heat demand in buildings was met by At the city level, policy trends for buildings include energy codes
renewables in district networks in 2018.132 Nevertheless, some that mandate the use of renewables for heating (or electricity).148
European countries have achieved relatively high shares of Such codes typically apply to new buildings, while renewables
renewables in the district heat supply (more than 50%i in at least for existing buildings often are encouraged through financial and
six countries in recent yearsii).133 In 2020, solar thermal systems fiscal incentives.149
for district heating were brought online in China, Denmark and An enabling policy measure becoming increasingly prevalent is
Germany, and these markets have continued to grow.134 bans and restrictions on some types of fossil fuels in new and
The use of traditional biomass for cooking – predominantly in existing buildings. Examples of this trend are present in more than
open fires or inefficient indoor stoves – leads to significant health 50 cities in 10 countries (and at least 7 national governments).150
problems, particularly in developing and emerging economies.135 Numerous cities in Asia, North America (especially the US state
In these countries, the use of gaseous fuelsiii reached 37% of the of California), Europe and Oceania have introduced policies to
population in 2019 (compared to 35% for the traditional use of phase out the use of fossil fuels for space and water heating in
biomass).136 At the same time, the share of electricity for cooking new and/or existing buildings.151 Policies subsidising the use of
rose to 10% in 2019; due to its use mostly in urban areas, the fossil fuels for heating continue to exist and clash with those that
use of renewable electricity for cooking is dependent on the encourage the uptake of renewables.152

i These statistics often include waste heat as a “renewable” source of district heat.
ii The six countries are, in descending order, Iceland, Norway, Sweden, Lithuania, Denmark and France.
iii Gaseous fuels refer to liquefied petroleum gas (LPG), natural gas and biogas, with LPG comprising the majority. Although not all renewable, these fuels – in
addition to electricity and improved biomass – combined with their related stoves are considered “clean cooking” facilities as per the guidelines of the World
Health Organization (WHO) for indoor air quality linked to household fuel combustion. See WHO, WHO Guidelines for Indoor Air Quality: Household Fuel
Combustion (Geneva: 2014), https://www.who.int/airpollution/guidelines/household-fuel-combustion/en.

44
 01

Efforts to restrict use of fossil fuels (mostly fossil gas) for heating
have met heavy resistance from the incumbent industry in many
INDUSTRY

GLOBAL OVERVIEW
regions, notably in the United Kingdom, the EU and the United Industrial energy use accounts for around 34% of total final
States.153 In the United States, fossil gas companies and industry energy consumption, growing at an annual rate of around 1%.161
associations launched public relations campaigns and spent In certain energy-intensive sub-sectors such as chemicals and
millions of dollars in 2020 attempting to sway public opinion non-ferrous metals processing, the annual growth in energy
against electrification.154 In the state of California, a consumer demand nears 4%.162 Around three-quarters of the energy used
protection agency recommended that the largest US fossil gas in industry is for direct thermal or mechanical end-uses that
utility pay USD 255 million in fines after misusing public funds to involve combustion, as well as the use of electricity to meet
oppose local fossil gas bans.155 thermal energy needs.163 Overall, these processes include the
generation of industrial process steam as well as drying and
The emergence of targets towards achieving net zero emissions,
refrigeration by use of thermally driven chillers. The remaining
as well as rising interest in net and nearly zero energy
share is for electrical end-uses, including the operation of
buildingsi, also are spurring increased use of renewables in
machinery and lighting.164 Direct energy-related industrial CO 2
buildings.156 In late 2020, 18 new signatories signed the Net Zero
emissions (excluding agriculture and land use) comprise around
Carbon Buildings Commitment to bring the total to 6 states and
24% of the global total.165
regions, 28 cities, and 98 businesses and organisations that
had agreed to achieve net zero emissions in their operations The COVID-19 pandemic and related economic slowdown led
by 2030.157 Beginning in 2021, the EU’s Energy Performance in to curtailed demand for industrial output worldwide and to a
Buildings Directive mandated that all new public buildings in the temporary reduction in industrial energy demand in 2020.166
region be “nearly zero energy buildings”. As a result, global industrial bioenergy consumption fell 4%
for the year.167 Measures to promote the uptake of renewables
In addition to improving the performance of new buildings,
in industries received limited attention in stimulus packages
addressing the existing building stock is expected to be
implemented in response to the pandemic. Some countries –
an important step towards meeting climate targets. The EU’s
notably Australia, Chile, Germany, the Netherlands, Norway and
Renovation Wave strategy, announced in 2020, aims to support
the United Kingdom – announced renewable hydrogen strategies
the decarbonisation of heating and cooling by strengthening
or investment plans to support efforts in harder-to-decarbonise
regulations, providing incentives for private financing and
sectors including heavy industry. (p See Sidebar 5 and Table 5
introducing minimum energy performance standards, among
in Policy Landscape chapter). By the end of 2020, only 32
other objectives.158 Mandatory building performance standards
countries had at least one renewable heating and cooling
were introduced and strengthened in the United States in
policy for industry, all of them in the form of economic incentives
2020 and early 2021.159 By the end of 2020, 67 countries had
such as subsidies, grants, tax credits and loan schemes.
mandatory or voluntary building energy codes at the national
(p See Reference Table R9 in GSR 2021 Data Pack.)
level, although no new requirements for renewables in building
energy codes were introduced during the year.160

i Various definitions have emerged of buildings that achieve high levels of energy efficiency and meet remaining energy demand with either on- or off-site
renewable energy. See endnote 156 for this chapter.

45
 RENEWABLES 2021 GLOBAL STATUS REPORT

The industrial sector relies heavily on fossil fuels, with renewables fuels accounting for 30% of the sector’s total energy use.180
accounting for only around 14.8% of total industrial energy This industry is located mainly in North America, Europe, East
demand.168 Around 90% of the renewable heat in the sector is Asia and Brazil.181 In particular, renewable energy provides low-
supplied by bioenergy (mainly biomass), and mostly in industries temperature heat for chemical pulping, the predominant mode
where biomass waste and residues are produced on-site, such of paper production.182 In 2020, Navigator Company (Portugal)
as pulp and paper, food, forestry and wood products.169 Uptake of invested EUR  55  million (USD  68  million) in a new biomass
bioenergy also is rising in the cement industry due to increasing boiler plant at its pulp and paper complex in the city of Figueira
use of municipal waste in China and the EU.170 Bioenergy use da Foz.183 Renewables also provide electricity for producing
for industrial heating is concentrated in countries with large paper through mechanical pulping.184 In Eastern Croatia, a
bio-based industries, such as Brazil, China, India and the United paper mill operated by sustainable packaging company DS
States.171 In 2019, Brazil was the world’s largest user of bioenergy Smith announced in 2020 that it was shifting to renewable
for industrial heat, with an estimated 1.6 EJ, followed by India electricity to power its paper-making process.185
(1.4 EJ) and the United States (1.3 EJ).172 The food and tobacco industry ranks second, with renewables
Renewable electricity accounts for the second largest share (10%) supplying more than a quarter of the energy supply for industrial
of renewable industrial heat, although it represented only 1% of process heat.186 Here, the renewable heat is supplied by heat
the total industrial heat consumption in 2019.173 It is used mainly pumps, solar thermal heat and electric heating.187 In Cyprus, a solar
for processes such as drying, refrigeration, and packaging and thermal system designed for continuous operation was installed
hardening for metal production.174 Solar thermal and geothermal at a Kean Juices facility as part of a demonstration project in
technologies also increasingly supply direct renewable heat for mid-2020.188 Renewable electrification also was a popular option
low-temperature industrial applications (20 degrees Celsius (°C) during the year. McCain Foods (Australia) began building an
to 300°C), although they still accounted for less than 0.05% of 8.2 MW renewable energy system at its food processing facility
total final industrial energy use in 2018.175 in Ballarat using a combination of ground-mounted solar PV
As of 2020, 98% of the geothermal industrial process heat was and a co-generation anaerobic digester that uses food waste to
used in China, New Zealand, Iceland, the Russian Federation generate energy.189 In India, SunAlpha Energy installed 12 MW of
solar PV capacity for the food processing sector and announced
and Hungary.176 Geothermal heat is used mainly in the food and
beverages, pulp and paper processing, and chemical extraction plans to exceed 30 MW at facilities across the country by 2030.190
industries.177 For solar thermal industrial heat, as of early 2020, The mining industry accounts for around 6.2% of the world’s
the leading countries in total installed capacity were Oman energy consumption and 22% of global industrial CO 2
(300  megawatts-thermal (MWth), Chile (25  MWth) and China emissions.191 Electricity represents 32% of the energy consumed
(24  MWth), while Mexico and India led in the number of by mines, presenting an opportunity for direct use of renewable
installations with 77 and 44 systems respectively.178 The mining power.192 However, renewables comprise less than 10% of energy
sector had the largest share of installed solar thermal capacity consumption in the sector, a share that has been constant for
(75%), followed by food and beverages (10%) and textiles (5.6%).179 some five decades.193 This share is higher in Australia, a leading
region in the use of renewables in mining.194
Three key industrial sectors that have low-temperature process
heat requirements, and where renewable energy is used, are Progress towards renewable electrification in mining also
pulp and paper, food and beverages, and mining. The pulp continued in some regions in 2020, with several major mining
and paper industry uses the highest share of renewables in companies building on-site renewable power plants in
industrial process heat, with bioenergy and other renewable Australia, Chile, Saudi Arabia and South Africa.195 Additionally,

Around 90% of the

renewable heat in the
industry sector is

supplied by
bioenergy,
most of which comes from
biomass produced on-site.

46
 01

Australia-based iron ore mining giant Fortescue Metals furnace (BF-BOF) route,
announced plans to build over 235 GW of renewable capacity to using metallurgical coal By the end of 2020,

GLOBAL OVERVIEW
become a supplier of renewable power and hydrogen while also as the chemical reducing at least 10 countries
decarbonising its own energy consumption.196 agent, where the potential had adopted a
In more energy-intensive industries, renewables face limitations
in meeting the requirements for high-temperature process heat
for renewables use is
limited. 211 renewable
(> 400°C). Three heavy industries in particular – chemicals, However, the remaining hydrogen
iron and steel, and cement – require vast quantities of energy, production occurs mostly support policies.
together accounting for 60% of industrial energy use and 70% through direct reduction
of industrial emissions.197 The penetration of renewables in these of iron ore or scrap
heavy industries remains low, comprising less than 1% of their steel using electric arc
combined energy demand in 2018.198 In the face of reduced furnaces, where renewable penetration is possible if renewable
demand due to the COVID-19 crisis, both energy use and hydrogen is used as the reducing agent and renewables are used
emissions in heavy industries declined around 5% in 2020.199 to power the furnaces. 212
Renewable hydrogeni can potentially play a key role in The “green steel” concept received considerable attention from
decarbonising heavy industries. 200 In 2020, the world’s largest industry players in 2020, mainly in Europe. 213 Sweden’s HYBRIT
developersii of renewable hydrogen came together to form green steel venture, which aims to replace coking coal with
the Green Hydrogen Catapult initiative, aiming to greatly fossil-free electricity and hydrogen, began operations at its pilot
reduce costs to stimulate a more rapid energy transition in the plant. 214 LKAB, one of the partners in the HYBRIT initiative, also
most carbon-intensive industries. 201 Government support for became the world’s first producer of fossil-free iron ore pellets
renewable hydrogen increased during the year, and by year’s during the year. 215 Another Swedish start-up, H2 Green Steel,
end at least 10 countries globally had adopted some kind of drew significant investments to build the world’s largest hydrogen
renewable hydrogen support policy. (p See Sidebar 5 and Table 5 electrolyser to produce green steel starting in 2024. 216 Germany’s
in Policy Landscape chapter.) largest steelmaker, Thyssenkrupp, announced plans to build
The chemicals and petrochemicals industry is the largest a direct reduced iron plant running on renewable hydrogen
industrial energy user worldwide, consuming 46.8  EJ in 2017 by 2025. 217
and producing 5% of total global energy- and process-related The cement and lime industry consumed 15.6  EJ of energy
CO2 emissions. 202 Only 3% of the industry’s energy demand in 2017 and accounted for 6.7% of total global energy- and
comes from renewables. 203 Energy in this industry is used as process-related CO 2 emissions. 218 However, the bulk of the
feedstock (primarily oil, natural gas, and coal) and for providing CO 2 emissions in this industry are not energy-related but are
high-temperature process heat (close to 1,000°C). 204 Renewables a by-product of the chemical process used to produce clinker,
could meet this energy demand in two main ways: using biomass the main constituent of cement. 219 Remaining emissions come
to replace fossil fuels as a feedstock, and using renewable mainly from the combustion of fossil fuels to supply process heat
hydrogen for process heat or as a feedstock. 205 for this reaction. The only feasible entry point for renewables in
Some companies already have begun using renewable hydrogen this industry is through fuel switching for process energy from
for these purposes. In late 2020, in Western Australia, YARA and coal to biomass, waste fuels, renewable hydrogen or direct
Engine formed a partnership to develop a renewable hydrogen electrification. 220 By 2017, renewables accounted for around 6%
project to provide feedstock for ammoniaiii production. 206 of energy use in the cement and lime sector, the largest share of
Also during the year, BioMCM and four partners won an EUR renewables among heavy industries. 221
11 million (USD  13.5  million) European grant for a renewable Regional and global cement industry associations around the
hydrogen project based in the Netherlands to produce renewable world announced carbon neutrality targets and roadmaps
methanol. 207 Additionally, BioBTX, an innovative technology in 2020, outlining the role of renewable heat, electricity and
that converts biomass into chemicals, secured financing to renewable hydrogen, notably in the Dominican Republic, Europe
operationalise its first commercial plant by 2023. 208 and the United Kingdom. 222 Additionally, the Mineral Products
The iron and steel industry consumed 32  EJ of energy in 2017 Association secured a GBP 6 million (USD 8.2 million) grant from
and contributed 8% of total global energy- and process-related the UK government to conduct fuel switching trials into hydrogen,
CO2 emissions, making it the largest emitter among heavy biomass and plasma technology to decarbonise cement and lime
industries. 209 Renewables accounted for only 4% of the industry’s production. 223 In February 2021, Hanson UK installed a renewable
energy consumption in 2017. 210 Nearly three-quarters (almost 72%) hydrogen demo unit at its cement facility in Wales to partially
of global steel is produced via the blast furnace / basic oxygen replace natural gas in the kiln combustion system. 224

i Renewable hydrogen is electrolytic hydrogen produced with renewable electricity.

ii Founding partners of the initiative include ACWA Power (Saudi Arabia), CWP Renewables (Australia), Envision (China), Iberdrola (Spain), Ørsted (Denmark), Snam
(Italy) and Yara (Norway).
iii Ammonia is predominantly used to produce fertilisers. It also is used as a refrigerant gas and for purification of water supplies, as well as in the manufacture of
household and industrial-strength cleaning products, plastics, explosives, textiles, pesticides, dyes and other chemicals. There has been growing interest in
ammonia as a transport fuel.

47
 RENEWABLES 2021 GLOBAL STATUS REPORT

TRANSPORT due mostly to the growing number and size of vehicles on the
world’s roads (and increases in tonne-kilometres and passenger-
For the transport sector, the year 2020 was marked by impacts kilometres travelled), to a reduction in average passenger-
from COVID-19, which also had an impact on the use of kilometres travelled per person for buses, and to a lesser extent
renewable energy in the sector. Transport activity and energy to rising air transport. 237 Passenger transport activity increased
demand fell sharply early in the year as lockdowns were put in 74% between 2000 and 2015, almost entirely in developing and
place, while sales and use of both standard and electric bikes emerging countries, while surface freight (road and rail) activity
rose dramatically in many places as hundreds of emergency increased 40% during this period. 238 However, while passenger
measures were implemented to support cycling and walking transport energy intensity fell 27%, road freight transport energy
infrastructure. 225 Aviation saw a 60% drop in traffic during the intensity declined only 5% during these years. 239
year, rail demand fell by up to an estimated 30%, and maritime
Because nearly all of the increases in energy demand in transport
trade declined an estimated 4.1%. 226 Public transport demand
have been met by fossil fuels, the result has been a general
dropped in 2020 and remained low in many countries as of early
trend of risingii greenhouse gas emissions from the transport
2021 due to fears of COVID-19 contagion from being on crowded
sector across all modes except rail, which remains the most
buses or trains, while people turned to private vehicles and
highly electrified sub-sector. 240 Nearly three-quarters (74%) of all
non-motorised or “active” transport (e.g., walking and cycling)
transport emissions are from road vehicles, 12% from aviation,
in some areas. 227
11% from maritime shipping and 1% from rail. 241
While EV sales increased around 41% during 2020, global
Renewables can meet energy needs in the transport sector
passenger vehicle sales plummeted 14%. 228 The number of
through the use of biofuels in pure (100%) form or blended
electric and plug-in hybrid passenger cars on the road surpassed
with conventional fuels in internal combustion engine vehicles;
10 million in 2020, while the number of e-buses increased to
biomethane in natural gas vehicles; and renewable electricity
600,000, and electric two-/three-wheelers totalled around
in battery electriciii and plug-in hybrid vehicles, and converted
290 million.229 Although sport utility vehicle (SUV) sales decreased,
to renewable hydrogen through electrolysis for use in fuel cell
SUVs were the only area globally across all sectors – even
vehicles, or used to produce synthetic fuels and electro-fuels. 242
beyond transport – to see their emissions increase in 2020 due
to their much higher average fuel consumption, their continued Following a decade of steady growth, biofuels productioniv fell
growth in popularity and the fact that in most cases they are 5% in 2020 due to the overall decline in transport energy demand
not electric. 230 during the year. 243 Nevertheless, they remained by far the largest
contributor of renewable energy to the transport sector. Ethanol
The transport sector accounts for around 60% of global oil
volumes fell significantly during the year (down 8%), while
demand, which dropped sharply in 2020. 231 While oil demand
biodiesel production and use was much less affected. 244 At the
in transport fell an estimated 8.8% during the year, it had
same time, production of HVO and HEFA fuelsv grew sharply. 245
nearly rebounded to pre-pandemic levels by mid-2021, and
(p See Bioenergy section in Market and Industry chapter.)
longer-term trends have shown that the growth in energy
demand for transport has far outpaced other sectors. 232 In contrast, the share of renewable electricity in the
Energy use for transport accounted for around one-third (32%) transport sector remained stable compared to 2019. 246 Greater
of total final energy consumption globally in 2018. 233 Road electrification of transport can help to dramatically reduce CO2
transport represented the bulk of the sector’s energy demand emissions in the sector, particularly in countries that are reaching
(74%), followed by aviation (12%), maritime transport (9.6%) and high renewable shares in their electricity mix. 247 EVs also offer
rail (2%). 234 Transport remains the sector with the lowest share the potential for significant final energy savings, as they are
of renewable energy: in 2018, the vast majority (95.8%) of global inherently more efficient than comparable internal combustion
transport energy needs were met by oil and petroleum products engine vehicles. 248 Investments in charging infrastructure
(including 0.8% non-renewable electricity), with small shares met can further enable the electrification of transport, with some
by biofuels (3.1%) and renewable electricity (0.3%). 235 infrastructure relying on 100% renewable electricity. 249 (p See
Systems Integration chapter.)
Despite continued gains in energy efficiency, particularly in road
transport, global energy demandi in the transport sector increased Some regions, particularly China, Japan and the Republic of Korea,
2.2% annually on average between 2008 and 2018. 236 This was also saw increases in the fuel cell electric vehicle market, and in

i At the same time, the carbon intensity of transport (i.e., the CO2 emitted per vehicle-kilometre) has improved in many countries due mainly to the implementation
of fuel economy or emission standards for light-duty vehicles. (p See Transport section in Energy Efficiency chapter.)
ii Transport CO2 emissions increased 19% between 2008 and 2018, at an average annual rate of 1.8%. Emissions from SUVs alone tripled between 2010 and 2020
due to the increasing number and larger sizes relative to other passenger vehicles. The sector as a whole accounted for nearly one-quarter of global energy-
related greenhouse gas emissions in 2018 (latest available data). While emissions from transport decreased an estimated 15% in 2020 due to the pandemic, they
are expected to rebound. See endnote 240 for this chapter.
iii See Glossary.
iv This section concentrates on biofuel production, rather than use, because available production data are more consistent and up-to-date. Global production
and use are very similar, and much of the world’s biofuel is used in the countries where it is produced, although significant export/import flows do exist,
particularly for biodiesel.
v HVO is hydrotreated vegetable oil and HEFA is hydrogenated esters of fatty acids. These fuels often are described as renewable diesel, especially in North
America. See Bioenergy section in Market and Industry chapter.

48
 01

the use of or investment in renewable hydrogeni and synthetic TRENDS BY TRANSPORT MODE
fuels for transport, but these remained relatively minimal. 250
Road transport accounted for around 75% of global transport

GLOBAL OVERVIEW
(p See Box 1 and Table 5 in Policy Landscape chapter.)
energy use in 2019, with passenger transport representing about
Overall, the transport sector is not on track to meet global two-thirds of this. 256 Biofuels continue to comprise nearly all
climate targets for 2030 and 2050. 251 The majority of countries (91%) of the renewable energy share in road transport energy
worldwide have acknowledged the transport sector’s role in use. 257 By the end of 2020, at least 65 countries had blending
mitigating emissions by including transport in their NDCs under mandates for conventional biofuels (a number unchanged since
the Paris Agreement. 252 However, just 10% of the NDCs as of 2017), and several countries with existing mandates strengthened
2020 included measures for renewables-based transport. 253 them or added new targets; at least 17 countries had mandates or
Many countries still lack a holistic strategy for decarbonising incentive programmes for advanced biofuels. 258
transport, although cities often are well placed to take more Although rarely linked directly to renewable sources, the use
comprehensive action – and many are already doing so. 254 Such of electric vehicles continued to expand during the year. EVs
strategies include reducing the overall demand for transport; became more commonplace in more countries, often as a result
transitioning to more efficient transport modes, such as of policies and targets adopted in prior years. 259 Global electric
(renewables-based) public transport and rail or non-motorised/ car sales remained strong despite the COVID-19 crisis, due in
active transport (e.g., walking and cycling); and improving vehicle part to support policies and falling costs; however, the overall
technology and fuels, such as through higher fuel efficiencies share of electricity in the transport sector remains low and has
and emission standards along with greater incorporation of increased little in recent years. 260
renewables. Together, these strategies – commonly referred to
Only limited examples exist of direct policy linkages between EVs
as Avoid-Shift-Improveii – can greatly decrease energy demand
and renewable electricity. During 2020, one additional country
and associated greenhouse gas emissions in the sector and
adopted an e-mobility policy directly linked to renewables,
thus allow for the renewable share in transport to increase. 255
bringing the total to three countries globally with such policies
(Austria, Germany and Japan). 261 Nevertheless, at least 9 states/
provinces, 33 countries, and the EU had independent targets
both for EVs and for renewable power generation, which could
facilitate greater use of renewables in transport. 262
Overall, the Policies restricting the use of fossil fuels can help increase renewable

transport energy shares in the sector. By early 2021, at least 19 jurisdictions

(national and state/provincial) had committed to banning sales of
sector is not new fossil fuel vehicles or internal combustion engine vehicles in
favour of lower-emission alternatives (sometimes explicitly EVs) by
on track 2050 or before, up from 17 jurisdictions a year before. 263 At least
to meet global climate 6 cities had adopted such bans, while at least 225 cities had
targets for 2030 and 2050. already partially restricted the circulation of fossil fuel vehicles
through the use of low-emission zones. 264

i Almost all hydrogen production globally is from fossil fuels.

ii These actions seek to address broader concerns among policy makers in the transport sector at the national and sub-national levels, such as environmental and
health impacts (e.g., congestion, pollution, road safety), transport security and equity in access to mobility.

49
 RENEWABLES 2021 GLOBAL STATUS REPORT

Partly in response to these and other policy developments, an A few local governments
increasing number of private companies have begun increasing and companies are using The overall share of
the use of renewables in their fleetsi. (p See Transport section
in Feature chapter and Box 2 in GSR 2020 Policy Landscape
renewable energy in their
bus fleets. While many
electricity in the
chapter.) An increasing number of auto manufacturers also
committed to moving away from fossil fuel-powered vehicles
cities have been using
biofuels in buses for
transport sector
remains low and has
during the year, including General Motors, Nissan and Ford, some time, an increasing
increased little in recent
while Volvo and Daimler announced a new joint venture aimed number are linking
years.
at developing, producing and commercialising hydrogen fuel renewable electricity to
cells for the heavy-duty vehicle industry. 265 e-bus charging (such as
Although many challenges remain for scaling up EVs, further charging the buses with
electrification of road transport has the potential to ease the solar power), notably in
integration of solar PV and wind power by providing balancing Europe, the United States and China. 277 Many more cities are
running public urban rail systems on electricity, sometimes
and flexibility services to the gridii. 266 Vehicle-to-grid (V2G)iii is
still relatively in its infancy, but during 2020 more companies directly linked to renewable electricity and in other cases using
invested in the technology and numerous new projects biofuels. 278 By the end of 2020, just two countries (France and
India) had enacted new policies and targets to advance the use
continued to be launched. 267 For example, ENGIE and Fiat-
Chrysler began construction on the world’s largest V2G project of renewables in the rail sector. 279
in Turin, Italy to provide 25  MW of renewable energy storage As the most highly electrified transport sector, rail transport
using batteries from 700 EVs. 268 accounts for around 2% of the total energy used in transport. 280
Renewables contribute an estimated 11% of global rail-related
Road freight consumes around half of all diesel fuel and is
responsible for 80% of the global net increase in diesel use since energy consumption. 281 Some jurisdictions have increased the
share of renewable energy in rail transport to well above its share
2000, with the increase in road freight activity having offset any
in their power sectors. 282 In 2020, at least two railway companies
efficiency gains. 269 Fuel economy standards push manufacturers
set net zero targets: Indian Railways for 2030 and UK-based
to seek to improve fuel efficiency and facilitate the adoption of
Network Rail for 2050. 283
alternative drivetrains based on low-carbon solutions, including
renewable energy. 270 Although fuel economy standards apply Maritime transportvii consumes around 10% of the global energy
to 80% of light-duty vehicles globally, only five countries apply used in transport – with around 0.1% estimated to be renewable
them to heavy-duty vehicles – Canada, China, India, Japan and – and is responsible for around 2.9% of global greenhouse gas
the United States – covering just over half of the global road emissions. 284 Although renewables do not feature significantly
freight market. 271 Moreover, no new countries have adopted such in the maritime fuel mix, some advances occurred during 2020.
standards since 2017iv. In 2019, the EU adopted the first-ever CO2 The Netherlands was the only country to advance the use
emission standards for heavy-duty vehicles. 272 of renewable energy in shipping, announcing plans obliging
The larger the vehicles and the longer the range, the more suppliers of heavy fuel oil and diesel for inland shipping to take
challenging it is to find cost-effective alternatives to diesel. 273 part in its renewable fuel scheme. 285
However, both public and private entities have supported At the international level, the International Chamber of Shipping
renewable alternatives. In 2020, the US state of California became (the global shipping trade association) announced plans to invest
the first jurisdiction worldwide to require truck manufacturers to USD 5 billion in research and development related to alternative
transition from diesel trucks and vans to “near-zero-emission fuels, with a goal of reducing the sector’s greenhouse gas
vehicles”, such as electric or biomethanev vehicles. 274 Finnish emissions 50% by 2050 (from 2008 levels).286 Also, stricter energy
state-owned gas company Gasum expanded its liquefied biogas efficiency targets and new fuel and emission standards adopted
(LBG)vi filling station network in Finland, Sweden and Norway. 275 by the International Maritime Organization in 2019 began being
In the private sector, Volvo Trucks (Sweden) reported seeing implemented in 2020, and the organisation set goals with the
increased interest in LBG during the year, while Finnish freight Global Industry Alliance to reduce emissions in the ship-port
firm Posti increased investment in LBG trucks. 276 interface. 287

i This trend also continued in some new mobility service companies, including micro-mobility services such as electric sidewalk/“kick” scooters and dockless bicycles
(both electric and traditional), as well as electric moped-style scooters and ridehailing and car-sharing services. (p See Box 2 in GSR 2020 Global Overview chapter.)
ii EVs could ease the integration of variable renewable energy provided that market and policy settings ensure the effective harmonisation of battery charging
patterns and/or hydrogen production with the requirements of the electricity system.
iii Vehicle-to-grid (V2G) is a system in which EVs – whether battery electric or plug-in hybrid – communicate with the grid in order to sell demand response services
by returning electricity from the vehicles to the electric grid or by altering their rate of charging.
iv Heavy-duty vehicles are the fastest growing source of oil demand worldwide and the fastest growing emitter of CO2 emissions. Even though they account for less
than a quarter of total freight activity, they account for three-quarters of the energy demand and CO2 emissions from freight. See endnote 240 for this chapter.
v Also called renewable natural gas or RNG.
vi Also called liquefied biomethane or bio-LNG.
vii The transport of goods or people via sea routes, including inland and coastal shipping.

50
 01

GLOBAL OVERVIEW
In addition to the use of biofuels and other renewable-based fuels to 2020, with emissions growing more rapidly than expected. 298
for propulsion, maritime transport has the possibility to directly However, air travel plummeted with the onset of the pandemic. 299
incorporate wind power (via sails) and solar energy. 288 Some
Support for and use of renewable fuels in the aviation sector
fleets already have moved to 100% renewable fuels, while others
made slight progress during 2020. Belarus, Ethiopia and Qatar
have moved to hybrid systems with energy storage (although not
submitted voluntary State Action Plans to the International
always operating on renewable energy). 289 In 2020, Finnish firms
Civil Aviation Organization, bringing to 120 the total number of
began testing LBG as a shipping fuel. 290 By early 2020, trials also
member statesi supporting the production and use of “sustainable
had begun on the use of ammonia as a shipping fuel, with the
alternative”ii aviation fuels, specifically drop-in fuelsiii. 300
potential to produce it using renewable electricity. 291 By year’s end,
discussions had begun on using green hydrogen in ferries and Meanwhile, as of early 2021, more than 315,000 commercial
short-distance shipping. 292 At a smaller scale, electric outboard flights had flown on blends of alternative fuels, up from 200,000
engines increasingly are being used in many markets and can a year before. 301 However, this is still a negligible share of the tens
be charged directly with renewable energy; some governments, of millions of flights performed each year. 302 At least 9 airports
such as Sweden, have offered incentives for electric models. 293 had regular distribution of blended alternative fuel, up from 8 the
year before, while at least 13 airports had batch deliveries of such
By early 2021, at least one new port (Valenciaport, Spain) had
fuels. 303 During 2020, as in the previous year, some companies
joined the World Ports Climate Action Program, bringing the
announced targets for their own aircraft to run on biofuels and
membership to 12 ports committed to advancing reductions in
were developing planes made specifically to do this. 304
maritime transport emissions in support of the Paris Agreement. 294
In 2020, Valenciaport committed to building 8.5 MW of solar PV Although interest in the electrification of aviation is increasing,
at two of its ports on Spain’s coast for its own operations. 295 as of May 2021 only electric drones or small planes had been
Also during the year, Portugal and the Netherlands signed a developed. Some companies were planning fully electric airlines
memorandum of understanding to connect Portugal’s renewable to carry more than 120 passengers, while others have aimed
hydrogen project with the Dutch Port of Rotterdam. 296 for hydrogen-powered electric planes. 305 A few “solar at gate”iv
Aviation accounts for around 12% of the total energy used in pilot projects have been developed in recent years in Cameroon,
transport – less than 0.1% of which is renewable – and for around Jamaica and Kenya, although none were added in 2020. 306
2% of global greenhouse gas emissions. 297 Despite the more Several airports announced during the year that their operations
than 50% decrease in carbon emissions per passenger-kilometre would be partly powered by solar power, including at all airports
between 1990 and 2019 (due to fuel efficiency improvements), in Ghana, three French airports and major airports in the cities of
global demand for air travel increased significantly leading up Edmonton (Canada), Melbourne (Australia) and New York (US). 307

i Representing 97.4% of global air traffic, up from 94.3% a year earlier.

ii The International Civil Aviation Organization (ICAO) considers such fuels to be a sustainable alternative when they are produced from three families of bio-feeds-
tock: the family of oils and fats, or triglicerides, the family of sugars and the family of lignocellulosic feedstock. See ICAO, “Alternative fuels: Questions and answers”,
https://www.icao.int/environmentalprotection/Pages/AltFuel-SustainableAltFuels.aspx, viewed 14 April 2021.
iii Drop-in biofuels are produced from biomass, including different types of organic waste, and have properties enabling them to replace fossil fuels directly in trans-
port systems, or to be blended at high levels with fossil fuels.
iv Using solar power for air conditioning and other services while a plane is at the airport gate.

51
 RENEWABLES 2021 GLOBAL STATUS REPORT

POWER Continuing a trend going back to 2012, most of the newly installed
power capacity in 2020 was renewable. Even as the fossil fuel and
The renewable power sector experienced a turbulent first half of nuclear power sectors struggled, renewables reached 83% of net
2020 during the onset of the COVID-19 pandemic. Supply chain power capacity additions.312 (p See Figure  8.) As in recent years,
disruptions, restrictions on the movement of labour and goods, solar PV and wind power made up the bulk of new renewable power
postponed or cancelled auctions, and other factors led to levels additions. Around 139 GW of solar PVi was added, comprising more
of new additions and investment that were markedly lower than than half of the renewable additions, while 93 GW of installed wind
in the same period in 2019.308 Pandemic-related restrictions led to power capacity made up some 36%.313 Almost 20 GW of hydropower
project developers facing significant labour shortages and delays capacity was brought online, and the remaining additions were from
in the supply chain as they rushed to complete projects on time.309 bio-power, with ocean, geothermal and concentrating solar thermal
However, the solar PV and wind power sectors rebounded in the power (CSP) adding only marginal net capacity. 314
second half of 2020, and by year’s end these two technologies Once again, China led in capacity added during the year,
each had installed a record amount of new capacity, steering accounting for almost half of new installations and leading global
the renewable power sector to an all-time high of more than markets for bio-power, CSP, hydropower, solar PV and wind
256 GW of added capacity. 310 Worldwide, total installed renewable power.315 With more than 116  GW added, China brought online
power capacity grew almost 10% to reach 2,839 GW. 311 (p See more capacity in 2020 than the entire world did in 2013, and it
Figure 7 and Reference Table R1 in GSR 2021 Data Pack.) nearly doubled its own additions of the previous year.316 Countries

i For consistency, the GSR endeavours to report all solar PV capacity data in direct current (DC). See endnotes and Methodological Notes for further details.

FIGURE 7.
Annual Additions of Renewable Power Capacity, by Technology and Total, 2014-2020

More than

256
Additions by technology (Gigawatts)
150
gigawatts added
in 2020

120

Solar PV
Wind power
90
Hydropower
Bio-power,
geothermal,
ocean power,
60
CSP

30

2014 2015 2016 2017 2018 2019 2020

Note: Solar PV capacity data are provided in direct current (DC). Data are not comparable against technology contributions to electricity generation.
Source: See endnote 311 for this chapter.

52
 01

outside of China added around 140  GW of capacity, up around Driven by government policy and low costs, major markets for
5% from 2019 and led by the United States (36 GW) and Vietnam leading renewable energy technologies withstood the worst

GLOBAL OVERVIEW
(11  GW).317 China also remained the global leader in cumulative effects of the economic shocks in 2020. During the second half of the
renewable energy capacity (908  GW) at year’s end, followed by year, activity accelerated dramatically as developers sought to make
the United States (313 GW), Brazil (150 GW), India (142 GW) and up for delays and to take advantage of expiring incentives in Vietnam
Germany (132 GW).318 (p See Table 2.) and the United States as well as expiring subsidies in China, which led
By the end of 2020, at least 34 countries had more than 10 GW to an installation rush (particularly for solar PV and wind power but also
of renewable power capacity in operation, up from 20 countries for hydropower).322 In solar PV markets, rapid growth in rooftop solar
in 2010. 319 The shift is even more impressive when excluding projects compensated for a smaller increase in the utility-scale market,
hydropower, as markets for both solar PV and wind power have while growth in the wind power sector rose sharply in the second half
grown dramatically in recent years. At least 19  countries had of the year, driven mainly by onshore wind installations in China.323
more than 10 GW of non-hydropower renewable capacity at the The global offshore market was stagnant compared to 2019.324
end of 2020, up from 5 countriesi in 2010. 320 The global market for hydropower, still the leading technology in
The top countries for non-hydro renewable power capacity per renewable electricity generation, grew significantly (24%) in 2020
person were unchanged from previous years: Iceland, Denmark, due to the commissioning of several large projects in China. 325
Sweden, Germany and Australia. 321 (p See Reference Table R2 CSP and geothermal power markets both declined during the
in GSR 2021 Data Pack.) year, with only a handful of countries accounting for most of the

i In 2010, China, India, Germany, Spain and the United States exceeded 10 GW of non-hydro renewable power capacity. As of 2020, Australia, Brazil, Canada,
Italy, France, Japan, the Republic of Korea, Mexico, the Netherlands, Poland, Sweden, Turkey, the United Kingdom and Vietnam also joined this list.

FIGURE 8.
Shares of Net Annual Additions in Power Generating Capacity, 2010-2020

Share in Additions to Global Power Capacity

83%
100%

renewables in
net additions

Non-renewable share
50% Renewable share

0%
2010 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: See endnote 312 for this chapter.

53
 RENEWABLES 2021 GLOBAL STATUS REPORT

new installations. 326 Ocean power was still disadvantaged by a despite declining 16%,
lack of policy support and of sufficient technological innovation to Renewables generated while the record additions
reduce costs significantly; however, the EU passed a new target an estimated were driven by a combined
for 1 GW of ocean power by 2030 and 40 GW by 2050. 327
Auctions and tenders for renewable power have become
29% of global tripling in Europe, the
Middle East and Africa.335
one of the most common market support mechanisms for new electricity US companies that
successfully closed PPAs
projects.328 In the first half of 2020, 13  countries awarded nearly in 2020.
50 GW in new capacity, breaking a record for auctioned capacity.329 in the United States have
The total number of countries that held renewable power auctions shown growing interest in
decreased during the year (from 41 to at least 33), but several new expanding their efforts to
countries held auctions for the first time.330 In some markets, the Europe.336
shift to auctions also has reduced the diversity of participants, In early 2020, global electricity demand dropped sharply
notably the involvement of community energy groups.331 in the wake of the COVID-19 pandemic. 337 However, demand
Alongside significant and ongoing cost reductions in solar PV rebounded by year’s end, resulting overall in a slight decline of
and wind power, the growth of auctions has created a highly around 2%, the first annual decline since the global economic
competitive bidding environment that has placed strong crisis of 2008/2009. 338 Production of electricity from renewables
downward pressure on price levels for renewable power projects. was favoured under these low-demand circumstances due to
In 2020, developers around the world continued to submit bids its inherent low operating costs, as well as the dispatch rules in
for tenders at record-low prices for utility-scale solar PV and wind many countries that prioritise renewable electricity. 339
power. 332 However, low bid prices in tendering processes do not Each year for the past decade, renewables have met a higher
necessarily reflect overall costs, as prices depend on resource share of global electricity demand than in the previous year. 340
availability, local labour and land prices and costs of financing, This trend accelerated in 2020 amid the lower demand and
while tendering conditions might include the provision of grid favourable conditions for renewable power. For the second
connection to developers, among other incentives. 333 consecutive year, electricity production from fossil fuels was
The amount of renewable electricity from power purchase estimated to decline, driven mainly by a 2% decrease in coal
agreements has grown substantially in recent years, with a record power generation. 341 Overall, renewables generated an estimated
23.7  GW sourced from corporate PPAs in 2020.334 The United 29.0% of global electricity in 2020, up from 27.3% in 2019. 342
States remained the world’s leading market for corporate PPAs (p See Figure 9.)

FIGURE 9.
Global Electricity Production by Source, and Share of Renewables, 2010-2020

Electricity Production (TWh) Share of renewable electricity (%)

30,000 50 %
Share of
renewable electricity
25,000
Fossil fuels
Nuclear power
20,000
Hydropower
Non-hydro renewables
15,000 25 %

10,000

5,000

0 0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: Ember. See endnote 342 for this chapter.

54
 01

The progress in renewable energy, and the decline in fossil fuels (33%), Greece (32%), Spain (28%), the United Kingdom (28%),
(especially coal), has been especially pronounced in certain Portugal (27%) and Australia (20%). 349

GLOBAL OVERVIEW
countries and regions. Wind power, hydropower, solar power The cost-effective integration of variable renewable electricity
and bioenergy became the EU-27’s main source of electricity has spurred industry players and governments to make efforts
in 2020, growing from 30% of generation in 2015 to 38%. 343 to increase the flexibility of their energy technologies and
Electricity generation from these renewable sources grew 23%
systems. Some countries expanded or modernised transmission
as production from coal power fell by half over this period. 344
infrastructure specifically to adapt their systems to rising shares
Similarly, in the United Kingdom, renewables grew to a 42%
of variable renewables. 350 Manufacturers of wind turbines and
share of generation to become the main source of electricity in solar PV modules are working to make their technologies more
2020, beating out fossil gas and coal at a combined 41%. 345 flexible so that they provide servicesi to the grid, as well as
In the United States, renewable energy reached nearly 20% better facilitate their own integration into the energy system. 351
of net electricity generation by year’s end, with solar and wind Governments have introduced policies to support demand
energy accounting for more than half of this; meanwhile, coal’s flexibility measures such as time-of-use pricing, incentive
share fell from around 24% in 2019 to less than 20% in 2020. 346 payments and penalties to influence the electricity use of
More than 19% of Australia’s electricity came from wind and consumers. 352
solar energy in 2020, and, overall, renewable energy represented Hybrid systems, consisting of at least two renewable energy
nearly 28% of the country’s generation, up from 24% in 2019. 347 technologies and/or energy storage, are able to provide
In China, electricity from hydropower, solar energy and wind
flexibility to the grid as well as to decrease costs and deliver
energy provided more than 27% of production, up from around
technical benefits (including higher capacity factors) due
26% in 2019. 348
to co-localisation. 353 In 2020 and early 2021, hybrid projects
The share of electricity generated by variable renewable combining solar PV, wind and/or energy storage were
electricity (wind power and solar PV) continued to rise in announced or commissioned in many countries, including India
several countries around the world. While variable renewables where a massive 30 GW solar-wind project began construction
contributed more than 9% of global electricity in 2020, in some in Gujarat. 354 Markets for hybrid solar thermal collectorsii
countries they met much higher shares of production, including grew in China, France, Germany, Ghana and the Netherlands
in Denmark (63%), Uruguay (43%), Ireland (38%), Germany during 2020. 355

i Grid services include the ability to provide operating reserve, voltage support and black start capabilities. (p See Systems Integration chapter.)
ii Also known as PV-T, or photovoltaic-thermal collectors, these systems convert solar radiation into both electrical and thermal energy.

In 2020,

wind power
and solar PV
generated more than
20% of electricity in
nine countries.

55
 RENEWABLES 2021 GLOBAL STATUS REPORT

SIDEBAR 2. Impacts of COVID-19 on Renewable Energy-Related Jobs in 2020

A variety of factors shape employment trends in the renewable subsidy phase-outs or cuts in feed-in tariff rates. In a sense, the
energy sector. They include costs and investments as well pandemic amplified the business cycle fluctuations typically seen
as labour, industry and trade policies. The intensity of labour in the sector.
changes as technologies mature, as the scale and complexity
As a result, employment in renewables fluctuated considerably
of operations grow and as automation takes hold. Gender
over the year. Depending on labour market policies and industry
disparities also persist in the sector, with women accounting for
practices in different countries, workers were furloughed, had
less than one-third of the overall renewable energy workforce
their work hours reduced or were laid off (and, in some cases,
in 2018. In addition to these factors, the COVID 19 pandemic
rehired later). The ability of governments, companies and
had unprecedented impacts on renewable energy-related
industries to cope with disruptions by switching to remote
employment in 2020.
working arrangements or to comply with social distancing
Although renewables fared better than expected compared with requirements in the workplace differed enormously.
conventional energy sources (in terms of new capacity additions),
the sector faced uncertainties and disruptions during the year. COVID-19’s impacts on employment also varied by renewable
Lockdowns and other restrictions on movement put pressure energy technology, end-use sector and value chain segment.
on supply chains and constrained economic activity. In many (p See Table 3.) Disruptions in the supply of inputs and raw
countries, project delays early in 2020 were followed by surges materials were common. For example, the supply of balsa, a key
of activity by year’s end, reflecting cycles of rising and falling component of wind turbine blades, was affected by the lockdown
COVID-19 infections. The year-end surge was driven in part by in Ecuador, which supplies 95% of the wood globally. As a result,
developers rushing to meet permitting deadlines (some of which production was shifted to other countries (including Papua
were extended in response to pandemic delays) or reacting New Guinea), and other materials (such as PET plastic) were
to impending changes in policies, such as expiring tax credits, substituted – resulting in job losses in Ecuador.

TABLE 3.
COVID-19’s Impacts on Employment in Segments of the Renewable Energy Supply Chain

Value chain segment Magnitude of impact Comments

Distributed renewables for Demand affected by reduced incomes and by social

Very high
energy access distancing requirements.

Greatly affected by temporary parts shortages, social

Transport and logistics High (medium term)
distancing measures, quarantines and border controls.

Strongly affected by lockdowns and delays, limits on the

Construction and installation High numbers of workers allowed on-site and social distancing
requirements. Less impact in the second half of 2020.

Drop in demand due to the decline in transport volumes

Biofuels High and to cheaper fossil-based diesel, but this was moderated
in some countries by increases in blending mandates.

Heavy effects on factory workers, technicians and

Manufacturing and procurement High (short term)
engineers due to temporary factory closures.

Travel to some project sites affected by border closures

and quarantine rules; however, energy generation is an
Operations and maintenance Low to medium
essential service and the physical space available at wind
and solar farms often allows for social distancing.

Project planning Low Many jobs can be performed remotely.

Source: IRENA. See endnote 38 for this chapter.

56
 01

GLOBAL OVERVIEW
Experience also diverged widely across countries, affecting local In Indonesia, another major biodiesel producer, employment
employment trends. Some countries (such as China) witnessed remained virtually unchanged in 2020 at around 475,000
substantial growth in new renewable power capacity additions jobs. Although COVID-19 restrictions reduced overall diesel
in 2020, while in other countries (such as India), renewables fuel consumption, the government raised the biodiesel
stagnated. However, new installations did not always translate blending mandate from 20% to 30%, substantially increasing
into job growth. For example, the United States added record domestic biodiesel consumption and, thus, supporting
amounts of solar energy in 2020, but one survey found that employment. However, the country’s exports collapsed as
US employment in the sector dropped 6.7% during the year, to a result of unfavourable prices compared to conventional
around 231,500 workers. This could be due to a decline in labour diesel and countervailing duties imposed by the European
intensity, given that large utility-scale projects accounted for Union in 2019.
three-quarters of new installations, as well as to fewer in-person
In the off-grid power sector, COVID-19 slowed the pace of
sales, which shifted to online marketing to comply with social
new capacity additions and electricity access considerably in
distancing requirements. By mid-2020, the US solar industry
many countries in 2020. This was especially true for sales of
had lost as many jobs as it had added in the past five years, due
off-grid solar lighting products. The finances of off-grid solar
primarily to a shift away from door-to-door sales.
companies were constrained due to reduced equity funding,
Meanwhile, energy use in the transport sector collapsed in while reductions in income restricted households’ abilities
early 2020. This affected biofuel demand in two ways: directly to afford cash purchases. (p See Distributed Renewables
through reduced demand for fuels and indirectly due to falling chapter.) Consequently, employment in the sector suffered.
crude oil prices, which made biofuels less competitive. During Jobs plummeted from an estimated 339,000 in 2019 to just
the year, employment rose in biodiesel while it fell in ethanol. 187,500 in 2020. COVID-19 also heavily impacted women’s
In Brazil, the world’s largest biofuels employer, the increase employment and livelihoods in the off-grid sector, since women
in the blending mandate drove biodiesel production up: are more often employed in small businesses and segments
jobs in this sector climbed from 294,900 in 2019 to 323,800 of the informal economy that already faced challenges to
in 2020. In contrast, jobs in ethanol have continued to fall as energy access.
increasing mechanisation reduces the need for manual labour
in feedstock operations, declining from an estimated 574,400
in 2018 to an estimated 547,300 in 2019. Source: IRENA. See endnote 38 for this chapter.

57
02
Since 2020, the BMW Group has used 100% renewable energy sources for its operations
globally. It also aims to increase electric vehicle sales to one-fifth of all sales by 2023.
 02

02 POLICY
LANDSCAPE

overnment policies continue to play a crucial role

G in accelerating the adoption and deployment of

KEY FACTS renewable energy technologies, particularly in sectors

other than power generation. Policies also continue to be critical
for achieving renewable energy cost reductions and innovation.1
 Despite the COVID-19 crisis, policy By the end of 2020, nearly all countries worldwide had in place
support for renewables remained renewable energy support policies, although with varying
strong throughout 2020. degrees of ambition. 2 (p See Figure 10 and Table 6.) In addition,
renewable energy deployment continued to expand outside
 Many countries were not on track to of government policies in the form of corporate commitments
achieve their 2020 targets, and many to renewables and utility-led activities. This was driven by
had not yet set new targets for future years. market-based factors such as corporate action on climate
change and the declining costs of renewable electricity. 3
 Policy related to heating and cooling (p See Feature chapter.)
in buildings and industry remained
scarcer than policies directed at electricity
generation and transport.

 EV policies became increasingly popular

in 2020, but most continued to lack a
direct link to renewable electricity.

 Many jurisdictions with high shares

of variable renewable electricity
implemented policy to ensure successful
integration.

 2020 saw important climate change

policy commitments in some major
markets.

59
 RENEWABLES 2021 GLOBAL STATUS REPORT

FIGURE 10.
Number of Countries with Renewable Energy Regulatory Policies, 2010–2020

Number of Countries 145

countries
150
Power regulatory
incentives/
mandates

120

65
countries
90
Transport regulatory
incentives/
mandates
60

22
30
countries
Heating and cooling
regulatory
incentives/
mandates
0
2010 2012 2014 2016 2018 2020

Note: Figure does not show all policy types in use. In many cases countries have enacted additional fiscal incentives or public finance mechanisms to support
renewable energy. A country is considered to have a policy (and is counted a single time) when it has at least one national or state/provincial-level policy in place.
Power policies include feed-in tariffs (FITs) / feed-in premiums, tendering, net metering and renewable portfolio standards. Heating and cooling policies include
solar heat obligations, technology-neutral renewable heat obligations and renewable heat FITs. Transport policies include biodiesel obligations/mandates,
ethanol obligations/mandates and non-blend mandates. For more information, see Table 6 in this chapter and Reference Tables R8-R10 in GSR2021 Data Pack.
Source: REN21 Policy Database.

The year 2020 was critical for assessing progress on renewable

energy targets. Worldwide, 165 countries had in place targets to
increase uptake of renewables in various sectors by year’s end.4
Most of these targets were for the power sector, followed by
targets for total final energy consumption, heating and cooling,
and transport. However, success in actually being on track to
meet the 2020 targets varied widely: overall, some 80 targets
were achieved, while the majority (134) were not yet achieved
according to the latest data available (ranging from 2017 to 2020).
While some countries were close to achieving their targets,
others were far from being on track. Moreover, as countries’
2020 targets were coming to term at the end of the year, as
many as 30 countries had not yet set new targets for future
years (compared to 67 that had). Many of the achieved targets
were for power, heating and cooling, and total final energy
consumption, while very few were in the transport sector.
(p See Figure 11 and Reference Tables R3-R8 in GSR 2021
Data Packi.)

i See www.ren21.net/gsr-2021.

60
 02

FIGURE 11.
Status of Countries in Meeting Their 2020 Renewable Energy Targets and Setting New Ones

Targets not yet achieved Targets already achieved

Total Final

POLICY LANDSCAPE
Energy
Consumption

Heating
and Cooling The majority of
countries' 2020
targets were
not yet
Transport achieved

Power

Number of countries 60 50 40 30 20 10 0 10 20 30 40 50 60

No later target exists

Note: Figure includes only countries with targets in these sectors that are for a specific share from renewable sources by a specific year, and does not include
countries with other types of targets in these sectors.
Source: REN21 Policy Database. See Reference Tables R3-6 in GSR 2021 Data Pack.

Continuing a trend of the past decade – and despite the renewable energy capacity and generation to meet demand,
COVID-19 crisis – policy support for renewables generally promoting energy security and providing increased access to
remained strong throughout 2020. In some countries, economic energy.6 (p See Distributed Renewables chapter.)
recovery policies and funding packages related to the pandemic
Policies to advance the production and use of renewables can
included explicit support for renewables, although, overall, far
be targeted at any and all end-use sectors, including buildings,
more support was allocated to fossil fuels. 5 (p See Sidebars 3
industry, transport and electricity generation. Most renewable
and 4.) While the global health and economic disruptions
energy policy in 2020 continued to focus on a single sector,
affected the suite of renewable energy policies implemented
although at least five countries unveiled comprehensive climate
during the year, such measures also evolved in response to
greater action on climate change, the falling costs of renewables, change policies that included support for renewables across
evolving grid and system integration demands, and the changing multiple sectors. Trade policy also continued to have an impact
needs and realities of different jurisdictions. on the production, exchange and development of renewable
energy products, as well as on the demand for renewables within
In jurisdictions with high shares of installed renewable energy,
specific countries.7 (p See Box 4.)
decision makers typically focused policy development on
ensuring that support for renewables was cost effective, and A significant amount of renewable energy policy making
on the technical and market integration of renewables. (p See continued to occur at the municipal level. However, this chapter
Systems Integration section in this chapter.) In less-mature covers mainly policy enacted at the regional, national and state/
renewable energy markets and in some developing and emerging provincial levels of governance. Municipal policy is discussed in
economies, policy efforts prioritised outcomes such as boosting detail in the REN21 Renewables in Cities Global Status Reporti.

i See www.ren21.net/cities.

61
 RENEWABLES 2021 GLOBAL STATUS REPORT

SIDEBAR 3. Renewable Energy in COVID-19 Stimulus Packages

In response to the COVID-19 crisis, governments around

the world announced more than USD  12  trillion in financial
stimulus, including at least USD  732.5  billion in energy-
related support. Although some stimulus packages included
incentives for renewables, as of April 2021 this comprised
only around USD 264 billion of the total amount provided by
governments globally, compared to more than USD 309 billion
in fossil fuel stimulus. (p See Figure 49 in Investment chapter.)
Direct support for coal included India’s USD 6.75 billion coal
infrastructure support package and the Republic of Korea’s
USD  2.5  billion bailout of Doosan Heavy Industries, a coal
plant manufacturer. Direct support for oil and gas included
USD 4.4 billion in loans and loan guarantees to a Canadian
pipeline and GBP  1.3  billion (USD  1.7 billion) in low-interest
loans to oil and gas companies in the United Kingdom.
Nevertheless, examples of “green recovery” efforts did emerge.
At a regional level, around 30% of the European Union’s (EU)
EUR 750 billion (USD 921 billion) COVID-19 stimulus package
was dedicated to “clean recovery” and renewables, including
renewable electricity generation, energy retrofits of buildings,
In the transport sector, aviation was the largest stimulus
renewable heat, renewable hydrogen and electric vehicles
recipient, but only three countries – Austria, France and
(EVs)i. China, India and the Republic of Korea also committed
Sweden – included “green” conditions for aviation stimulusiii.
to renewable energy investments, although those countries
At least four countries provided COVID-19 relief for electric
also supported coal in their recovery plans. Colombia’s plan
transport and hydrogen for transport, although not necessarily
included raising COP 16 billion (USD 4.6 million) to accelerate
linked to renewable energy. The Republic of Korea’s recovery
27 renewable energy and related transmission projects.
package included KRW 2.6 trillion (USD 2.4 billion) in support of
In the power sector, governments provided around EVs and hydrogen cars. France’s plan allocated EUR 11 billion
USD 95 billion in response to COVID-19. This was largely to (USD  13.5  billion) for EVs, including support for charging
ensure the continuation of services and to reduce consumers’ stations. Germany’s stimulus package included EUR 5.9 billion
bill burdens rather than to incentivise renewablesii, although (USD 7.3 billion) in subsidies for EVs and charging infrastructure
several countries provided funds for new renewable power as well as EUR  7  billion (USD  8.6  billion) for renewable
capacity. Israel’s recovery plan included a commitment hydrogen for decarbonising heavy transport and industry. Part
of ILS 6.5  billion (USD  2  billion) to build 2 gigawatts (GW) of Spain’s EUR 3.8 billion (USD 4.6 billion) aid package for the
of new solar PV capacity. Nigeria’s stimulus plan allocated auto industry included measures to electrify public transport, a
around USD 620 million for a programme to install solar PV target to increase the number of EV charging points to 50,000
home systems for 5 million households. In the United States, by 2023 and 800,000 by 2040, funding for EV charging and
the USD  900  billion relief package included extensions of subsidies for purchasing low-emission cars.
the production and investment tax credits for solar PV and
onshore wind power, a new tax credit for offshore wind i Member States are expected to invest funds in the seven priority areas
power, USD  1.7  billion for low-income homeowners to of: clean energy technologies; energy-efficient building renovations;
sustainable transport; broadband roll-out; digitalisation of public ad-
install renewable energy, and USD 4 billion in research and ministration; cloud computing capacities; and mainstreaming digital
development (R&D) funding for solar power, wind power, skills into education systems. In line with the European Green Deal, EU
countries have agreed to explicitly include clean energy transitions at
hydropower and geothermal energy.
the heart of their economic recovery.
In the buildings and industry sectors, the largest share ii Excluding the EU plan for economic recovery, new renewable electricity
plants, mostly wind and solar PV, received only around
of energy-related stimulus aid was aimed at spurring USD 10 billion from announced stimulus packages.
investments in renewable heat in buildings and raising the iii Austria required Austrian Airlines to abolish air routes that can be rea-
energy efficiency of existing buildings. France’s COVID-19 ched by train in far fewer than three hours and to commit to additional
emission reduction goals, France’s USD 7.7 billion support for Air France
stimulus package included EUR 7 billion (USD 8.6 billion) to
required 50% emission reduction and a minimum of 2% renewable fuel
support building renovations – including those encouraging by 2030, and Sweden imposed conditions of 25% emission reduction by
renewable heat – as part of a wider target to renovate the 2025 on Scandinavian Airlines.

country’s entire building stock by 2050. Source: See endnote 5 for this chapter.

62
 02

BOX 4. Trade Policy, Local Content Requirements and Renewables

In 2020, several jurisdictions unveiled policies to stimulate the Other jurisdictions eased import requirements for renewable
local production of renewable energy equipment. In Africa, energy equipment in 2020. The Brazilian government
Mali exempted equipment such as solar panels, wind turbine introduced a measure to remove a 12% levy for some solar

POLICY LANDSCAPE
blades and pump turbines from paying value-added tax (VAT). equipment (modules, inverters and trackers). The government
Burkina Faso launched a Solar Cluster initiative to establish of Bangladesh added EUR 200 million (USD 246 million) during
a domestic solar PV industry by offering long-term financial the year to its Green Transformation Fund, which offers loans
backing for solar PV projects and providing networking and for the import of “environmentally friendly” products and energy
training opportunities for the country’s solar industry. Uganda’s efficiency components from Europe. In Senegal, to accelerate
revised draft National Energy Policy committed to formulating the electrification of rural areas, the government exempted
innovative financing mechanisms for geothermal and solar equipmenti for the production of solar PV power from the VAT.
PV through different financial interventions, including income
i The exempted products include solar panels, inverters, solar thermal
tax deductions, exemptions from VAT and customs tax, and collectors, batteries, solar lamp kits, solar water heaters and charge
accelerated depreciation tax incentives. regulators. Packages comprising a battery, solar panel, and a lantern
or a solar panel, a water pump and controller also are included among
India put forward an expedited manufacturing plan to the VAT-exempted products.
incentivise domestic solar cell manufacturing capacity and Source: See endnote 7 for this chapter.
planned to impose new tariffs of 40% on imports of solar
modules and 25% on solar cells starting in April 2022. The
Indian government also approved a “production-linked
incentive” plan to enhance the country’s manufacturing
capabilities and exports, including domestic high-efficiency solar
PV module manufacturing and advanced chemistry cell batteries.
Turkey’s new regulations for solar panel imports (which
require calculating the import duty on solar modules per
kilogram rather than by square metre) are perceived to favour
Turkish manufacturers of solar PV panels, as high-efficiency
modules generally are heavier than they were a few years
ago. Saudi Arabia announced a plan to increase local content
in domestic renewable energy industry chains.

RENEWABLE ENERGY AND CLIMATE POLICIES THAT INDIRECTLY SUPPORT RENEWABLES

CLIMATE CHANGE POLICY Although the COVID-19 crisis was the central political focus
of 2020, commitments to climate change mitigation also were
Policies enacted to help mitigate climate change can directly or prominent during the year. Overall, 2020 was an important
indirectly stimulate renewable energy deployment by mandating milestone for climate change policy, with many countries’
a reduction or elimination of greenhouse gas emissions, phasing greenhouse gas targets for the year expiring, countries setting
out or banning the use of fossil fuels and/or increasing the costs new targets, and numerous countries committing to carbon
of energy from fossil fuels relative to renewables. Climate change neutrality. For example, signatories to the Paris Agreement were
policies that indirectly support renewables include targets to supposed to submit updated (or new) Nationally Determined
reduce greenhouse gas emissions, the development of and Contributions (NDCs)i towards reducing emissions by the end of
participation in carbon pricing and emission trading programmes, 2020, and at least 40 countries plus the EU met this deadline. 8
and fossil fuel bans or phase-outs. In some cases, climate change
Numerous countries worldwide also implemented additional
policies also are designed to directly stimulate the deployment of
climate change policies during 2020, including setting
renewables.
greenhouse gas emission targets, adopting carbon pricing or
emission trading programmes, and announcing fossil fuel bans
or phase-outs. (p See Figure 12.)

i Nationally Determined Contributions (NDCs) describe efforts by each country to reduce greenhouse gas emissions and adapt to the impacts of climate
change. Article 4 of the Paris Agreement requires each Party to prepare, communicate and maintain successive NDCs that it intends to achieve. By the end
of 2020, countries with an initial NDC covering the period to 2025 were required to produce an NDC that extends to 2030, and those that already contained a
2030 target were required to update their NDCs. In 2020, 44 countries plus the EU met this deadline.

63
 RENEWABLES 2021 GLOBAL STATUS REPORT

FIGURE 12. Carbon

Countries with Selected Climate Change Policies, Early 2021 pricing initiatives
covered only around
22 % of global
greenhouse gas
emissions by
early 2021.

Washington

California

Net zero emissions target

Carbon pricing policy

New Hampshire Maine
Both net zero emissions target
Vermont and carbon pricing policy
Connecticut
Maryland State/provincial policy only
New York
Virginia New Jersey
Delaware
Existing fossil fuel ban in 1+ sectors
Targeted fossil fuel ban in 1+ sectors

Note: Carbon pricing policies include emission trading systems and carbon taxes. Net zero emissions targets shown are binding and include those that are
in law or policy documents, as well as those that have already been achieved. Fossil fuel ban data include both targeted and existing bans across the power,
transport and heating sectors. Jurisdictions marked with a flag have some type of fossil fuel ban in one or more sector. See GSR 2021 Data Pack for details.
Not all cities with policies are shown; see REN21 Renewables in Cities 2021 Global Status Report for more comprehensive city policies.
Source: Based on World Bank, Energy Climate Intelligence Unit, IEA Global Electric Vehicle Outlook and REN21 Policy Database. See Reference Tables R4,
R6 and R9 in GSR 2021 Data Pack. See endnote 8 for this chapter.

Greenhouse gas emission targets mandate a reduction in

overall emissions and can include net zero and “carbon-neutral”
targetsi. During 2020, new emission reduction commitments
were spread across nearly all continents, covering around 47%
of total global emissions. 9 (p See Table 4.) Some of the most
significant carbon neutrality pledges occurred in Asia, with
China aiming to become carbon neutral by 2060, Japan by
2050 and the Republic of Korea by 2050 (including a pledge to
replace coal with renewables).10

i “Net zero” refers to achieving a net balance between greenhouse gas emissions produced and those removed from the atmosphere. In contrast, a gross zero
target would reduce emissions from all sources to zero. In a net zero scenario, emissions are “allowed” as long as they are offset by removals. Reaching net zero
emissions may be linked to activities such as carbon offsetting and carbon capture and storage and thus does not necessarily include the use of renewables.
“Carbon-neutral” means having a balance between emissions of carbon and the absorption of carbon from the atmosphere (by way of carbon sinks).

64
 02

TABLE 4.
New Net Zero Emission and Carbon-Neutral Targets Set by Countries/Regions in 2020

Net zero emission targets

2019 CO2 emissions 2019 CO 2 emissions
Country/region Target year Legal status
(kilotonnes) (% of world total)

POLICY LANDSCAPE
EU-27 2,939,069 7.73% 2050 Proposed

Austria 72,363 0.19% 20401 In law/policy document

Canada 584,846 1.54% 2050 Proposed
Hungary 53,183 0.14% 2050 In law/policy document
Jamaica 7,442 0.02% 2050 Pledge
Lao PDR 6,783 0.02% 2050 Pledge
Maldives 913 <0.001% 2030 2
Pledge
Mauritius 4,332 0.01% 2070 Pledge
Nepal 15,019 0.04% 2050 NDC
United Kingdom 364,906 0.96% 20503 In law/policy document
The Vatican N/A N/A 2050 Pledge

Carbon-neutral targets
2019 CO2 emissions 2019 CO 2 emissions
Country/region Target year Legal status
(kilotonnes) (% of world total)

Argentina 199,414 0.52% 2050 NDC

Barbados 3,827 0.01% 2030 In law/policy document4
China 11,535,200 30.34% 2060 Pledge
Japan 1,153,717 3.03% 2050 Pledge
Kazakhstan 277,365 0.73% 20605 Pledge
Korea, Republic of 651,870 1.71% 2050 NDC
Malawi 1,616 <0.001% 2050 Pledge
Nauru N/A N/A 2050 Pledge
Slovenia 15,365 0.04% 2050 National plan/strategy
South Africa 494,862 1.30% 2050 6
National plan/strategy

Notes: Net zero emissions can refer to all greenhouse gas emissions or only carbon emissions,
and involves emissions declining to zero. Carbon neutral refers to the balancing of carbon
New emission reduction
emissions caused by an entity with funding an equivalent amount of carbon savings elsewhere.
Although carbon neutrality is sometimes considered to be a synonym for net zero carbon commitments during 2020
emissions, carbon neutrality can be achieved at the domestic level by using offsets from other covered around

47%
jurisdictions, whereas net zero does not necessarily include this feature. Some of these countries
– along with Colombia, Kenya and Peru – also adopted other targets less than carbon-neutral/
net zero (see GSR 2021 Data Pack for full dataset).
1 Austria's target is for "climate neutrality".
2 Target to be reached with adequate international support and assistance.
of total global emissions.
3 Adopted in 2019.
4 Published in 2019.
5 Target could be advanced if the country raises USD 10 billion annually from other nations to
help finance the transition.
6 South Africa's target is a net zero carbon emissions target.
N/A = data not available
Source: See GSR 2021 Data Pack.

65
 RENEWABLES 2021 GLOBAL STATUS REPORT

Carbon pricing and emission trading programmes have the In the transport sector,
potential to indirectly increase the deployment of renewables by
increasing the relative cost of energy from fossil fuels. By the end
bans on fossil fuels
for road transport can Bans and
of 2020, at least 64 national and state/provincial governments
(up from 57 in 2019) had adopted or committed to carbon
incentivise biofuels-
based transport as well
phase-outs
pricing policies through either direct taxation or a cap-and-trade as electric vehicles, which
of fossil fuels grew in
programme.11 During the year, Montenegro introduced a cap- could facilitate greater use popularity during 2020,
and-trade system for major greenhouse gas emitters, and in of renewable electricity particularly for coal.
Mexico a pilot emission trading programme began operating as in the sector. Bans on
part of a process to establish a more complete trading system.12 internal combustion
New Zealand strengthened its emission trading programme by engine vehicles (or
placing a finite cap on the total emission permits that will be targets for 100% EVs)
issued under the programme.13 similarly incentivise EVs. (k See Reference Table R8 in GSR
Bans and phase-outs of fossil fuels are other indirect climate 2021 Data Pack.) During 2020, as part of its new “green growth”
change policies that can stimulate the uptake of renewables in strategy, the government of Japan announced that it would take
different (or multiple) end-use sectors. In 2020, the most common actions to eliminate petrol vehicles in the next 15 years (although
type of fossil fuel ban enacted at the national and state/provincial no target was set). 22 Scotland’s updated Climate Change Plan
includes a commitment to phase out sales of new petrol and
levels was on coal. Since coal typically is used for electricity
diesel cars and vans by 2030. 23
generation, coal bans can indirectly stimulate generation from
renewables. (k See Reference Table R6 in GSR 2021 Data Pack.) At the state level, California (US) is requiring all new passenger
In Europe, both Austria and Sweden closed their last coal-fired vehicles (cars and trucks) sold in the state to be zero emissioni
power plants in 2020 as part of phase-out plans.14 Although by 2035, while all medium- and heavy-duty vehicles sold must
Germany’s scheme to phase out hard coal was already under be zero emission by 2045 – the first such policy in the world
way, the government implemented the Coal Phase-Out Act targeting trucks and vans. 24 Massachusetts (US) announced a
during the year, which lays out a strategy to gradually reduce the ban on the sale of new petrol vehicles by 2035. 25 (p See Transport
use of coal-powered energy by 2038.15 section in this chapter for more details.)
In Asia, Japan committed to accelerating the closure of roughly Many cities also have adopted policies that either ban or heavily
two-thirds of its older, lower-efficiency coal-fired power restrict the use of fossil fuels for road transportii, as well as
plants by around 2030, and made pledges to further promote policies that incentivise non-motorised travel. In addition to
renewables.16 The government of the Philippines announced a vehicle bans and EV targets, cities increasingly have used low-
moratorium on all applications for new coal-fired power plants, emission zones (LEZs) to restrict certain types of vehicles from
and Pakistan announced an end to the construction of new coal entering city centres. 26 In 2020, governments placed a strong
plants (although plants under construction were expected to be emphasis on walking and cycling infrastructure, as “pop-up”
completed).17 bike lanes were added during pandemic-related lockdowns
In the buildings sector, bans or support for phasing out fossil and allocations were made for cycling infrastructure funding,
fuels for heating (such as heating oil and fossil natural gas) may subsidies and other incentives. 27 (p See Transport section
in Global Overview chapter, and Renewables in Cities Global
indirectly stimulate the use of renewables for space and water
Status Report.)
heating. Many of these bans occur at the municipal level. (k
See Reference Table R4 and Reference Table R9 in GSR 2021 At least two countries withdrew support for fossil fuel
Data Pack, and Renewables in Cities Global Status Report.) At the exploration in 2020. Denmark announced that it will end all new
national level, Germany’s new Buildings Energy Act places limits domestic oil and gas exploration by 2050. 28 The United Kingdom
on the installation of oil heating systems beginning in 2026.18 announced an end to all public financing for international fossil
The government of Finland included in its 2020 budget fuel projects, including support for oil, most fossil-based natural
EUR  45 million  (USD  55  million) in grants to phase out oil gasiii and coal exploration and other operations starting in
heating in both residential and municipal buildings.19 The United 2021. 29 However, this announcement does not include the UK’s
Kingdom announced a ban on gas fuels for heating in all new domestic oil and gas exploration. 30 Some countries also have
homes, although no deadline was provided. 20 Slovenia’s National begun engaging in so-called “subsidy swaps” that shift public
Energy and Climate Plan included a commitment to ban the sale funding away from fossil fuels to more sustainable alternatives. 31
and installation of new heating oil boilers after 2022. 21 (p See Sidebar 4.)

i A zero-emission vehicle, or ZEV, is a vehicle that does not produce any direct tailpipe emissions. ZEVs may have a conventional internal combustion engine
but also must be able to operate without using it. ZEVs include battery electric vehicles, hydrogen fuel cell vehicles and plug-in hybrid electric vehicles.
ii Cities include the Australian Capital Territory (Canberra) (ZEVs by 2021); London (100% zero-emission transport by 2050); Los Angeles (100% ZEVs by 2050);
New York City (100% ZEVs by 2050); San Francisco (electrify all private forms of transport); and Toronto (all transport in the city to be low carbon).
iii Exceptions will be made for some natural gas-fired power plants.

66
 02

SIDEBAR 4. “Subsidy Swaps” as a Means to Shift Financial Support Towards Renewables

Across the energy sector, technologies that enjoy access to Many of these measures are reflected in the wider trends in
grants, tax breaks and other forms of government support power generation capacity in recent years. Since 2015, net
have a clear market advantage over those that do not. Direct installations of renewable capacity have outpaced those of
subsidies to the oil, gas and coal industries amounted to more both fossil fuel and nuclear power capacity combined. (p See

POLICY LANDSCAPE
than USD  478  billion globally in 2019, and both direct and Global Overview chapter.)
indirecti subsidies for fossil fuel production have continued to
Although most subsidies tend to be captured by the rich,
grow, increasing an estimated 38% or more that year. In the
efforts to reform fuel subsidies that support lower-income
lead-up to the fifth anniversary of the Paris Agreement, in
groups (such as subsidised heating oil) can sometimes be
December 2020 a group of 10 governmentsii spanning nearly
controversial. Rises in fuel prices could end up being regressive
all continents released a joint statement calling on world
(having a greater impact on those with lower incomes) and risk
leaders to phase out fossil fuel subsidies.
reducing people’s ability to meet basic energy needs. Through
Some fossil fuel subsidy schemes are designed to offset the the design of adequate complementary measures, however,
falling margins and loss of competitiveness that fossil fuels fossil fuel subsidies can be removed without limiting energy
have experienced in the face of ever-lower renewable energy access. For example, a subsidy swap from kerosene to solar
costs. These subsidies have impeded the rapid transition to lighting can benefit poorer households while also lowering
renewables that is necessary to achieve global climate and emissions, reducing reliance on fossil fuels and improving
development goals. However, in recent years momentum has health through cleaner air.
grown behind the idea of accelerating the transition through
India’s subsidy policy has broadly followed the logic of a subsidy
so-called subsidy swaps that shift public funding away from
swap. One analysis found that the country’s subsidies for all
fossil fuels, which are increasingly seen as detrimental to both
energy types fell from USD 35 billion in 2014 to USD 26 billion
public health and the environment. (p See Feature chapter in
in 2019. Over this period, the energy subsidies that remained
GSR 2020.)
were increasingly allocated towards "clean energy" and
Subsidy swaps generally involve elements of the following: transport. India has been able to lower subsidies for kerosene,
•
reducing and removing fossil fuel subsidies and/or a key fuel for poor households, in part by better targeting the
increasingly taxing fossil fuels; beneficiaries of support for alternative fuels, in combination
with expanding electrification and clean cooking. Although the
• generating a greater share of tax revenues from environmental
Indian government has set a target for 450 GW of renewable
taxation (e.g., carbon pricing policies);
energy capacity by 2030, fossil fuel subsidies in the country are
• reallocating a share of savings and tax revenues to renewable still greater than financial support for renewables.
energy, energy efficiency and related infrastructure;
During 2020, some government responses to the COVID-19
•
mitigating negative social impacts through allocations
crisis became a testing ground for the subsidy swap approach.
targeted at specific population groupsiii; and
Recovery packages have the potential to greatly shape future
• ensuring that all reallocations of funds are broadly supportive energy systems, as subsidies and bailouts could either derail
of an energy transition. or accelerate the energy transition. International organisations
have called for using post-pandemic recovery packages as an
opportunity to phase out fossil fuel subsidies, although so far
very few governments have acted on this advice. Most new
and amended energy policies introduced in 2020 sent a mixed
signal: while there was a great deal of support for renewables
in some recovery packages, many governments chose to
further prop up fossil fuels. (p See Sidebar 3 in this chapter.)

i Direct subsidies involve actual payment of funds to individuals and/or industries, while indirect subsidies do not involve actual cash outlays but encom-
pass other financial benefits such as price reductions.
ii Costa Rica, Denmark, Ethiopia, Finland, New Zealand, Norway, Sweden, Switzerland, the United Kingdom and Uruguay.
iii For example, targeted allocations could include “lifeline” tariffs for those identified as lacking basic energy access, grants for renewable energy systems for
those not connected to the grid, or reducing income taxes for low-income earners funded by reforming fossil fuel subsidies. See International Institute for
Sustainable Development, Getting on Target: Accelerating Energy Access Through Fossil Fuel Subsidy Reform (Winnipeg, Canada: 2018), https://www.iisd.
org/system/files/publications/getting-target-accelerating-energy-access.pdf.
Source: IISD. See endnote 31 for this chapter.

67
 RENEWABLES 2021 GLOBAL STATUS REPORT

CLIMATE PLANS THAT DIRECTLY SUPPORT RENEWABLES In Asia, the Republic of Korea’s Green New Deal outlines plans
for the country to reach its 2050 target for carbon-neutrality. 38
While most climate change policies do not include renewable
They include introducing a carbon tax, expanding solar PV and
energy support directly, in some cases, climate change policies
wind power capacity to 42.7  GW by 2025 (up from 12.7  GW in
are designed to directly stimulate the deployment of renewables.
2019), installing solar PV on 225,000 public buildings, targeting
During 2020, at least six governments at the regional, national
1.13  million EVs and 200,000 hydrogen-powered vehicles by
and/or provincial or state levels adopted comprehensive,
2025, providing funding for 45,000  EV recharging stations and
cross-sectoral climate policies that included direct support for
450  hydrogen refuelling units, and installing 4,000 public EV
renewables, in addition to elements of one or more of the indirect
charging stations and 65 hydrogen charging stations by 2035. 39
support policies mentioned previously.
In Africa, Zimbabwe launched new renewable energy and
For example, the EU’s 2020 commitment to reduce greenhouse
biofuels policies to guide investments in renewables as a way to
gas emissions 55% by 2030 included earmarking EUR 1 trillion
achieve the country’s target of a 33% reduction in greenhouse
(USD 1.2 trillion) in funding for the European Green New Deal. 32
gas emissions (compared to business as usual) by 2030.40 The
This strategy aims to transform Europe into a climate-neutral
National Renewable Energy Policy includes a target of 1.1 GW
continent by 2050 by undertaking actions across all parts of the
of installed renewable electricity capacity by 2025 (or 16.5%
economy, including investing in renewable electricity generation,
of the country’s total electricity supply) and 2.1  GW by 2030,
renewables in buildings and electrification of transport (which
along with tax breaks for renewable generation facilities and a
would facilitate increased renewable electricity in the sector)i. 33
requirement for all new buildings to host solar PV systems.41 The
At the country level, France and the United Kingdom also Biofuels Policy commits to an ethanol blending mandate of up
committed to various renewable energy policies as part of to 20% by 2030 and the introduction of biodiesel blending of
comprehensive climate change plans. France’s new national up to 2% by 2030.42
energy plan (Programmation pluriannuelle de l’énergie) includes
In North America, Canada released a climate plan that includes
targets for renewable generation capacity for 2023 and 2028, a
a commitment to increase the carbon tax from CAD  50
target for renewable hydrogenii to comprise 10% of the industrial
(USD  39) per tonne in 2022 to CAD  170 (USD  133) per tonne
hydrogen mix by 2023 (and 20-40% by 2028), targets for energy
by 2030, as well as CAD 15 billion (USD 11.7 billion) in funding
efficiency in buildings, and targets of 660,000 EVs by 2023 (and
for buildings, industry and transport.43 The Canadian province
3  million by 2028) and 100,000 public EV charging stations
of Quebec adopted a CAD 6.7 billion (USD 5.2 billion) climate
by 2023. 34
change plan that includes a target to reduce emissions 37.5%
The United Kingdom’s “10 point plan” for a green industrial below 1990 levels by 2030, a target of carbon neutrality by 2050,
revolution allocates around GBP  12  billion (USD  16  billion) in a ban on sales of new petrol passenger vehicles (cars, sport
government investments to decarbonise the country.35 It includes utility vehicles, vans and pick-up trucks for personal use) by
an offshore wind power target of 40 GW by 2030 (up from the 2035, targets for EVs and biofuels in transport, and funding for
10 GW installed currently) in addition to providing GBP 1.3 billion renewable heating and cooling in buildings.44
(USD 1.8 billion) for EV charging infrastructure, grants for zero- or
ultra-low-emission vehicles, funding for cutting emissions from
aviation and maritime activities, funding for energy efficiency for
homes and public buildings, and a new target to install 600,000
heat pumps in homes and public buildings.36 In addition, the plan
calls for phasing out sales of new petrol and diesel cars and vans
by 2030 (moved up from the previous target year of 2035). 37

During 2020,

only 6
governments
adopted comprehensive,
cross-sectoral climate
policies that included direct
support for renewables.

i EU Member States had to submit by 1 January 2020 their first long-term strategies covering specific sector plans, including electricity, industry, transport,
heating/cooling and buildings, agriculture, waste and land use, and land-use change and forestry.
ii See Glossary.

68
 02

HEATING AND COOLING Data Pack.) All of the new developments occurred in Europe.
For example, Italy raised the tax-deductible “eco-bonus” benefit
IN BUILDINGS for building insulation and replacement of heating and cooling
The buildings sector – including both commercial and residential systems in apartment buildings and family homes (from 50% to
buildings – is a significant energy end use and contributor to global 110%) and extended the benefit to the end of 2022. 50 Lithuania
greenhouse gas emissions.45 Energy is consumed in buildings provided EUR 14 million (USD 17 million) to reimburse building
for climate control (space heating and cooling), water heating, owners who convert old, inefficient boilers to more energy-

POLICY LANDSCAPE
cooking, lighting, and the powering of appliances and electronics. efficient installations that use renewable heat sources (including
A variety of policies exist at the national and provincial/state biofuel boilers and heat pumps). 51
levels related to direct and indirect heating and cooling with The Netherlands’ subsidy programme scheme for renewables
renewables, including thermal renewable energy (geothermal, (Renewable Energy Production Incentive Scheme, SDE++),
solar thermal), biomass-based energy and renewable electricity which compensates for the difference between the cost of
(which can be used to power heating and cooling appliances the technologies and the market value of the product, was
such as heat pumps) (p see Power section in this chapter).
broadened to include renewable heat (such as geothermal,
Heating and cooling demand in buildings accounts for around biomass and solar thermal systems).52 Scotland provided
25% of total final energy consumption, and although most of this GBP  1  million (USD  1.4  million) for projects using “low-carbon”
consumption is currently met by fossil fuels, there is significant heat and/or renewable electricity solutions for buildings, and
potential for greater use of renewables.46 Bioenergy (including the United Kingdom extended its Domestic Renewable Heat
renewable gasesi) is the largest renewable source of heating and Incentive Scheme to 31 March 2022. 53 Portugal launched a new
cooling in buildingsii today, but other sources include geothermal EUR 4.5  million (USD 5.5 million) energy efficiency programme
and solar thermal energy, as well as renewable electricityiii.47 that provides incentives for decarbonisation and energy efficiency
Despite the vast potential of renewables, policies designed to in buildings, including to retrofit them with renewables. 54
advance their use in heating and cooling remain less common
than those in the power or transport sectors. Mandatory building energy codes that require the
deployment of renewable energy systems can play a key role
Policy makers can advance the production and use of renewable
in the uptake of renewable heating and cooling, particularly
energy to heat and cool buildings through legislated targets,
in new construction and retrofits. 55 Even when renewables
financial incentives, mandates (including building energy codes),
are not explicitly required in building energy codes, these
policies that support the electrification of heating and cooling,
codes can have a positive effect on the energy demand of
and policies that support renewable district heating. Policies
buildings because they typically require energy efficiency
that indirectly encourage renewable heating and cooling include
improvements. 56 By the end of 2020, 67 countries had in place
fossil fuel bans or phase-outs, fuel taxes and net zero emission
mandatory or voluntary building energy codes (down from
standards for buildings. (p See Renewable Energy and Climate
Change Policies section in this chapter.) 73 in 2019). 57 At least 40 countries have mandatory codes for
both residential and non-residential buildings. 58
In 2020, as in previous years, policy developments in heating
and cooling for buildings remained scarcer than policies
directed at electricity generation and transport. Although some
developments occurred (including financial incentives, energy
efficiency and electrification of heating and cooling), by year’s
end only 19 countries had committed to renewable heating
and/or cooling targets for buildings (down from 49 countries
in 2019, due to 2020 targets coming to term without being
replaced by later targets), whereas 137 countries had renewable
power targets.48 Meanwhile, only 10 countries had renewable
heat support policies covering all sectors (residential, industrial,
commercial and public facilities) by the end of the year. (p See
Figure 13, and Reference Tables R4, R6 and R9 in GSR 2021 Data
Pack.) Interest in cooling has increased with the rising demand for
cooling, particularly in developing countries, but this has not yet
translated into more policies and targets for renewable cooling.49
Financial incentives for buildings – including grants, rebates,
tax incentives and loan programmes – were the most commonly
used measures to encourage renewable heating and cooling in
buildings during 2020. (k See Reference Table R9 in GSR 2021

i Renewable gases include biogas, biomethane, renewable natural gas and renewable hydrogen produced from renewable electricity (electrolysis).
Because renewable gases can replace fossil gas, they can leverage existing gas networks.
ii Mainly through the use of wood and pellet stoves and boilers and in district heating networks.
iii The electrification of heating is only renewable to the extent that the electricity used is generated from renewable sources.

69
 RENEWABLES 2021 GLOBAL STATUS REPORT

FIGURE 13.
Sectoral Coverage of National Renewable Heating and Cooling Financial and Regulatory Policies, as of End-2020

Number of
sectors covered
4 sectors

3 sectors

2 sectors
Renewable energy mandate
1 sector
Other support policy
Zero sectors or no data

Only

10 countries Note: Sectors include residential, industrial, commercial and public facilities. Policy types used for map shading
had renewable heat include investment subsidies/grants, rebates, tax credits, tax deductions, loans and feed-in tariffs. Renewable
support policies covering energy mandates are the obligation to meet a certain renewable standard for heat, such as the use of a specified
technology. Other support policies include fossil fuel bans, support for phasing out fossil fuels, CO2 pricing
all sectors as of end-2020. for heat and support for R&D. Figure does not show policies at the local level; for local level data, see REN21
Renewables in Cities Global Status Report, www.ren21.net/cities.
Source: REN21 Policy Database. See Reference Table R9 in GSR 2021 Data Pack.

While not all of the codes included renewable energy electrification of heating and cooling is increasing, with around
requirements, at least 2 new renewable energy requirements 11% of global electricity generation used by electric heaters,
were added to building energy codes in 2020 (in contrast to boilers and heat pumps for buildings.61 In 2020, policy makers
2019 when no such requirements were added), only at the sub- gave greater attention to policies targeting the electrification
national level. A requirement adopted in 2018 for all new homes of heating and cooling in buildings. Denmark provided tax
in California to be equipped with solar panels came into effect incentives for the use of renewable electricity to heat buildings
in 2020, while the state of Washington announced additional (while also raising taxes on fossil fuels for heating) and allocated
energy credit options for builders incorporating solar power.59 DKK 2.3 billion (USD 0.38 billion) for the replacement of oil and
Conversely, some jurisdictions added restrictions for renewable natural gas boilers with renewable heat.62
energy in their building codes, such as Minnesota, which prohibits At a sub-national level, British Columbia (Canada), which
placing solar panels within 0.9 metres of a roof edge as a safety generated nearly 95% of its electricity from renewables in 2020,
precaution – a measure that is estimated to shrink the available temporarily doubled rebates for residential heat pumps.63 In the
space for solar PV by at least 20%.60 United States, California provided USD 45 million for electric heat
Electrification of heating and cooling can increase the pump water heaters, and New Mexico reinstated a USD  6,000
penetration of renewables in the buildings sector if the tax credit for households and businesses to install solar PV
electricity used is generated from renewable sources. Globally, panels or solar thermal systems to heat water.64 The Australian

70
 02

INDUSTRY
In addition to using electricity, some industrial processes utilise
thermal energy (heat) to meet various needs. Like buildings,
thermal energy demand (both direct thermal energy and
electricity for heat) in industrial processes accounts for around
25% of global final energy consumption.75 This demand can

POLICY LANDSCAPE
be met directly by thermal energy from renewables (including
biomass, solar thermal and geothermal energy) or indirectly
from renewable electricity, for example via heat pumps (provided
that the electricity used is generated from renewable sources).
Renewable hydrogen also can be used to meet certain energy
demands in industryiii.76 (p See Sidebar 5 and Table 5.) Currently,
bioenergy accounts for nearly all of the renewable heat use in
industry (almost 90% in 2019).77
Renewable energy solutions to provide low-temperature heat
for industrial uses are widely available. However, for industries
that require high-temperature heat, such as steel and cement,
renewable technologies have not yet reached scale to be
competitive with fossil fuels. Thus, government support through
Capital Territory committed AUD 500 million (USD 383 million) policy, targets, and research, development and demonstration
to build a hospital powered entirely with renewables, including a (RD&D) remains important. Nevertheless, by the end of 2020,
100% renewable electric heating and cooling system.65 only 32 countries had some form of renewable heating and
Renewable district heating can provide an entry point cooling policy for industry (unchanged from 2019). (k See
for renewables to reach end-users. In 2020, the European Reference Table R9 in GSR 2021 Data Pack.)
Commission approved a EUR  150  million (USD  184  million) The most common form of policy support during 2020 was
programme to support the conversion of district heating systems financial incentives. For example, the United Kingdom offered
in Romania from fossil fuels to renewables.66 Poland launched GBP 139 million (USD 189 million) to support industry efforts to
a programme offering owners of district heating networks cut greenhouse gas emissions, including switching from fossil-
co-financing in the form of grants and loans to add renewable based gas to renewable hydrogen for fuel-heavy industry.78 The
energy or waste heat to their systems.67 Netherlands offered a subsidy for companies in the industrial
Policies targeting energy efficiency often are cost-effective sector to generate renewable electricity, heat and gas for their
options for decreasing the thermal demand of buildings.68 In 2020, own use.79 Denmark allocated DKK 2.5 billion (USD 413 million)
the EU launched a “renovation wave” that aims to reduce building in subsidies for 10  years for electrification and energy
emissions 60% by 2030 by doubling the yearly rate of energy- efficiency improvements in industry, as well as DKK  2.9  billion
related building renovations.69 The renovation wave includes (USD 479 million) for biogas and other renewable gases for those
an acknowledgement of the contribution of on-site renewables parts of industry where renewable electricity cannot be utilised
to achieve higher energy efficiency requirements.70 Another directly. 80 Although not specific to industry, Scotland announced
European initiative, set to begin in 2022, is intended to facilitate interest-free loans of GBP 1,000 to GBP 100,000 (USD 1,358 to
collaboration between experts and entrepreneurs on buildings, USD 135,772) for small and medium-sized enterprises to install
including energy efficiency.71 In the United Kingdom, England’s renewables for heating (including biomass boilers, solar thermal
new Green Homes Grant scheme provides homeowners the technologies and electric heat pumps). 81
opportunity to receive a government subsidy for two-thirds of the In the agricultural sector, most policy during the year was aimed
cost of energy efficiency improvementsi.72 at improving irrigation systems. Jamaica committed to powering
Israel’s new national energy efficiency plan includes funding all irrigation systems operated by the National Irrigation
to make buildings more energy efficient over the next 10 years, Commission solely with solar PV within two years. 82 Egypt
including by ensuring that imported electrical products are more announced plans to invest EGP 184 million (USD 11.6 million) to
energy efficient, integrating energy ratings into new buildings and modernise several irrigation systems, including equipping them
requiring contractors to publish energy efficiency ratings when with solar PV to improve electricity supply. 83 Canada, as part of
they sell.73 At a sub-national level, the US state of Washington its new climate plan, committed to investing CAD  166  million
implemented a Property Assessed Clean Energy (PACE)ii loan (USD  130  million) to support its agriculture sector to develop
programme to finance energy efficiency and renewable energy “clean technologies” (including renewables). 84
retrofits for existing and new buildings.74

i Up to a maximum of GBP 5,000 (USD 6,788) per household, or up to GBP 10,000 (USD 13,577) for low-income homeowners.
ii See Glossary.
iii In some cases, hydrogen also can be used as a feedstock for chemical processes.

71
 RENEWABLES 2021 GLOBAL STATUS REPORT

SIDEBAR 5. Policy Support for Renewable Hydrogen

Renewable hydrogen is an energy carrier produced through production and set a target of 300-600  MW of capacity by
renewables-driven electrolysis or gasification using renewable 2024 and 4 GW by 2030. Scotland announced GBP 100 million
feedstocks. Hydrogen can either be combusted directly for (USD  136  million) for new electrolysers and set a target for
use in heat or transport, or used to generate electricity via fuel 25 GW of renewable hydrogen by 2050.
cells. Apart from its potential to be stored and converted to
In Australia, the government committed AUD  70  million
electricity when needed, hydrogen provides an opportunity
(USD  54  million) to support the deployment of at least two
to increase the penetration of renewables beyond the power
new renewable hydrogen projects and established a new
sector, mainly in industry and transport but also in buildings.
AUD  300  million (USD  230  million) fund to invest in the
(p See Systems Integration chapter.) In 2020, nearly all hydrogen
country’s renewable hydrogen industry. At a state level,
produced and used worldwide continued to be manufactured
Tasmania announced a Renewable Hydrogen Action Plan
with natural gas for use as an industrial feedstock.
and AUD 50 million (USD 38 million) for renewable hydrogen;
A number of governments made policy announcements during the Northern Territory unveiled a strategy to become a hub
the year in support of hydrogen, although not all of these for renewable hydrogen technology research, production and
committed to pursuing renewable hydrogeni. However, several manufacturing; and Queensland announced AUD  10  million
notable policy developments related to renewable hydrogen (USD  7.7  million) over four years (in addition to the original
occurred, particularly in Europe and Australia (as in 2019) but AUD 15 million (USD 12 million) Hydrogen Development Fund)
also in Latin America. to support the renewable hydrogen industry.
In Europe, the EU introduced a new hydrogen strategy, In Latin America, Chile unveiled a national green hydrogen
including a goal of 6  GW of electrolyser capacity powered strategy that aims to develop the country into a global producer
by renewable electricity by 2024 and 40  GW of renewable and exporter by 2040. The strategy consists of a commitment
hydrogen electrolyser capacity by 2030ii. Germany launched to develop regulation for the use and production of renewable
its own hydrogen strategy, including plans to increase hydrogen, to analyse global best practices related to renewable
hydrogen production capacity to 5 GW by 2030 and 10 GW by hydrogen, and to convene government and the private sector
2040 using surplus electricity from renewable energy sources. to develop a roadmap and action plan by 2025 that will identify
Germany also committed to investing up to EUR  7  billion cofinancing opportunities with the private sector. Chile’s
(USD 8.6 billion) to promote renewable hydrogen production strategy also updates the country’s NDC by setting out a target
and use. for renewable hydrogen to reduce greenhouse gas emissions
The United Kingdom announced GBP  28  million (USD  38 18-27% by replacing fossil fuels.
million) in funding for five hydrogen production projects, one
i For example, Canada and France developed national hydrogen strategies
focused on using offshore wind power to generate renewable but did not commit to the development of renewable hydrogen specifically.
hydrogen. Norway allocated NOK 3.6 billion (USD 420 million) ii By 2030, the EU wants 40 GW of electrolysers installed within its
to support the move from “grey” hydrogen (produced from borders and another 40 GW in place in nearby countries that can
export to the EU. The EU’s strategy does not shut out “blue hydrogen”
fossil fuels) to “blue” hydrogen (fossil fuels with carbon capture (fossil-based hydrogen with carbon capture and storage) as a means of
and storage) and finally to “green” hydrogen (renewable phasing in hydrogen while the cost of renewable hydrogen decreases.
hydrogen). Spain unveiled a plan to boost renewable hydrogen Source: See endnote 76 for this chapter.

72
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TABLE 5.
Targets and Policies for Renewable Hydrogen, 2020
Note: This table includes details only on renewable hydrogen targets and policies. For additional details, see GSR 2021 Data Pack.

Jurisdiction Target Policy/Programme

European 6 GW electrolyser capacity and Hydrogen Strategy provides framework to establish European Clean Hydrogen

POLICY LANDSCAPE
Union 1 million tonnes production Alliance, including an investment agenda and support for scaling up value chain.
by 2024; 40 GW and 10 million The strategy targets production as well as end-use in industry.
tonnes by 2030

Australia Renewable Hydrogen Deployment Funding Round will provide AUD 70 million
(USD 54 million) to support at least two projects. Advancing Hydrogen Fund of
AUD 300 million (USD 230 million) supports new projects nationwide.
New South Electricity Investment Bill includes AUD 50 million (USD 38 million) over
Wales 10 years to develop renewable hydrogen sector. Parts of NSW will be designated
renewable energy zones.
Northern Renewable Hydrogen Strategy outlines a plan for development of local
Territory industry, resource management infrastructure, fostering demand for exports and
domestic applications, support for innovation and regulation to guide industry.
South AUD 17 million (USD 13 million) in grants and AUD 25 million (USD 19 million) in
Australia loans provided to four projects. Hydrogen Action Plan outlines plan to facilitate
investments in infrastructure; establish regulatory framework; and support trade,
supply capabilities, innovation, workforce development and energy system integration.
Tasmania Production to start by 2022 Renewable Hydrogen Industry Development Funding Program allocates
AUD 50 million (USD 38 million) to support industry development, including
financial assistance for renewable electricity supply and concessional loans.
Victoria Hydrogen Investment Program supports development of industry through
market testing, policy development and targeted investment programme.
Western Up to 10% blend in gas pipelines Renewable Hydrogen Strategy and Roadmap include funding for grants to
Australia and networks by 2030 study production for export, use in mining operations, blending with natural gas
and use as transport fuel.
Queensland Hydrogen Strategy includes the AUD 15 million (USD 11 million) Hydrogen
Industry Development Fund, providing funding for investors developing
projects to increase supply of renewable hydrogen.
Canada
Quebec Hydro-Quebec's (public utility) Strategic Plan 2020-24 supports R&D for
production using hydroelectricity.
Chile 5 GW electrolyser capacity and Up to USD 50 million to help finance pilot projects that may not be initially
200 kilotonnes of production competitive while operating at a small scale. A task force will help with provision
by 2025; 25 GW by 2030 of permits and development of pilot programmes.
France1 6.5 GW electrolyser capacity; EUR 2 billion (USD 2.5 billion) from its coronavirus recovery plan by 2022 for
20-40% renewable by 2030; 10% pilot and regional projects, and EUR 7 billion (USD 8.6 billion) for development
renewable in industry by 2023 of industry by 2030.
Germany 5 GW electrolyser capacity and National Hydrogen Strategy includes EUR 310 million (USD 380 million)
14 TWh production per year by 2023 for research and innovation; EUR 9 billion (USD 11 billion) to stimulate
by 2030; 10 GW and 28 TWh use in transport, industry, heating and other applications; and EUR 7 billion
production per year by 2035-2040 (USD 8.6 billion) to increase capacity.
Netherlands 0.5 GW electrolyser capacity SDE++ (Stimulation of Sustainable Energy Transition) subsidy scheme
by 2025; 3 to 4 GW by 2030 extended to include renewable hydrogen production.
Northern 6 GW electrolyser capacity
Netherlands by 2024; 40 GW by 2030
Norway A portion of NOK 3.6 billion (USD 380 million) green restructuring package to
support renewable hydrogen projects.
Portugal 10% to 15% in natural gas EUR 7 billion (USD 8.6 billion) investment in renewable hydrogen by 2030.
networks; 2 GW to 2.5 GW
electrolyser capacity; 50 to 100
fuelling stations by 2030
Spain 4 GW electrolyser capacity EUR 1.5 billion (USD 1.8 billion) support for the period 2021-2023.
and 25% in industry by 2030
United 5 GW electrolyser capacity GBP 12 billion (USD 15 billion) plan to heat homes with renewable hydrogen.
Kingdom by 2030 Hydrogen Supply programme allocates a portion of GBP 28 million
(USD 36.5 million) for two projects.
United States USD 64 million for 18 projects.

1 France's targets are for "decarbonised" hydrogen, which may include hydrogen produced by nuclear energy.
Source: See GSR 2021 Data Pack at www.ren21.net/gsr-2021.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

TRANSPORT advanced biofuels, financial incentives, public procurement

programmes, and support for biofuel production, fuelling and
Globally, the transport sector has the lowest share of renewable blending infrastructure.
energy and accounts for around one-quarter of global energy-
At least three new biofuel blending targets were announced in
related greenhouse gas emissions. 85 Although renewable
2020. The United States set a target for biofuels to make up 15%
energy policies in the sector have been expanding, most
of US transport fuels by 2030 and 30% by 2050. 86 Zimbabwe
policies continue to focus on road transport, with few directly
launched a national biofuels policy, which includes targets for
supporting renewables in rail, aviation and shipping. As of the
ethanol blending of up to 20% and for biodiesel blending of up
end of 2020, the share of renewables in the transport sector was
3.7%, unchanged from the year before. (p See Global Overview to 2% by 2030. 87 Paraguay established a law requiring biodiesel
chapter.) This section covers renewable energy transport blending of 4% in 2021 and 5% in 2022, up from 3% in 2020. 88
policies enacted at the national and provincial/state levels. Biofuel blending mandates remained the most widely used
(k See Reference Table R8 in GSR 2021 Data Pack.) policies for ensuring renewable content in road transport.
Overall, 65  countries had blending mandates as of the end of
ROAD TRANSPORT 2020 (unchanged since 2017). (p See Figure 14 and Reference
Table R8 in GSR 2021 Data Pack.) While no new countries added
Polices to incentivise renewables in road transport include
biofuel blending mandates during 2020, some that already had
policies directly supporting biofuels and the use of renewable
a policy either added new mandates or targets or strengthened
electricity in electric vehicles, as well as some climate change
policies, such as fossil fuel bans, carbon pricing and requirements existing ones.
for "zero-emission" vehicles. (p For climate policies that support At least 28 countries revised their existing mandates during
renewables, see Renewable Energy and Climate Change Policy the year. Early in 2020, Brazil increased its minimum biodiesel
section in this chapter.) blend from 11% to 12% (although, as a result of the COVID-19
crisis, the country later temporarily reduced it to 10%). 89 Belgium
Biofuels in Road Transport increased its biofuel blending mandate from 8.5% to 9.55%,
In 2020, biofuels continued to make the largest contribution while Cyprus raised its mandate from 5% to 7.3%. 90 Indonesia
of renewable energy to the road transport sector. Policies increased its biofuel blending mandate to 30%, up from 20%. 91
supporting the production or use of biofuels include biofuel At the sub-national level, Ontario (Canada) raised its petrol
blending targets, biofuel blending mandates, support for blending mandate from 5% to 10%. 92

FIGURE 14.
National and Sub-National Renewable Transport Mandates, End-2020

National biofuel blend

mandate, 10% or above
National biofuel blend
mandate, below 10%
Sub-national biofuel
blend mandate only
No policy

Countries with existing

advanced biofuel mandates

Note: Shading shows countries and states/provinces with mandates for either biodiesel, ethanol or both.
Source: REN21 Policy Database. See Reference Table R8 in GSR 2021 Data Pack.

74
 02

By the end of 2020, 11  countries (and the EU) had targets in Electric Vehicles
place for advanced biofuels (up from 10 countries in 2019), Electric vehicleii policies became increasingly popular in 2020.
and 17  countries had mandates in place for advanced biofuels. Although these are not renewable energy policies by themselves,
(k See Reference Table R8 in GSR 2021 Data Pack.) Only one EVs can increase the penetration of renewables in transport to
new country, Latvia, adopted an advanced biofuels target in the extent that the electricity used to charge them is generated
2020: the country’s national energy and climate plan (NECP) from renewable sources. Policies to support EVs include
included a target of 3.5% advanced biofuels and biogas in targets, financial incentives, public procurement, funding for

POLICY LANDSCAPE
the transport sector’s final energy consumption by 2030. 93 charging infrastructure, free parking and preferred access for
Financial incentives supporting the production and use of EVs. Financial incentives and support for EV charging were the
biofuels are less common than blending mandates but were most common forms of EV policy implemented during 2020.
extended in some countries. Sweden extended its tax exemption (k See Reference Table R8 in GSR 2021 Data Pack.)
for liquid biofuels to the end of 2021, and Iowa (US) extended a
As in 2019, most of the EV policies implemented in 2020 lacked
fuel tax incentive for diesel sold in the state containing at least 11%
a direct link to renewable electricity, although the number of
biodiesel. 94 Thailand announced plans to revoke the seven-year
policies that do have a direct link increased from two countries to
time frame for ending biofuel subsidies and to instead maintain
threeiii by year’s end. Japan announced plans to increase subsidies
the subsidies until sometime between 2022 and 2026. 95 for EVs under the condition that the vehicles are charged with
Some jurisdictions implemented public procurement renewable electricity – a policy type that previously was found only
programmes to support biofuels. At the national level, the in Austria.102 Additional support linking EVs to renewable electricity
Finnish postal service committed to using renewable diesel to fuel occurred through state-owned and -operated transport companies.
its light delivery fleet. 96 Additional public procurement initiatives India’s West Bengal Transport Corporation committed to using
related to transport took place at the local level, although more solar PV electricity to recharge its EVs.103 In the United States, the
often for EVs than for biofuels. (p See Renewables in Cities 2021 Delaware Transit Corporation provided USD  3.1  million to install
Global Status Report.) solar PV at its operations facility to help power electric buses.104
Some jurisdictions promote biofuels for road transport by In jurisdictions with high shares of grid-connected renewable
supporting biofuel production and infrastructure. In 2020, electricity, EV policies and targets can indirectly support renewable
Paraguay’s government granted “Free Zone”i treatment for energy use in the transport sector even if not directly linked in the
an advanced biofuels plant to produce renewable diesel and same policy, as long as the jurisdiction is simultaneously targeting
renewable aviation kerosene. 97 Brazil’s RenovaBio programme increasing shares of renewable electricity.
became fully operational in 2020, with decarbonisation credits
By the end of 2020, at least 52 national or state/provincial jurisdictions
being sold in the nation’s stock exchange. 98
had targets for EVs, up from 38 in 2019, although not always
The United Kingdom announced funding for four plants also targeting high renewable electricity shares.105 (p See Figure 15,
producing advanced biofuels. 99 The United States committed and Reference Tables R8 and R6 in GSR 2021 Data Pack.) At least
up to USD 75 million over five years for research on sustainable 19 jurisdictions had targets for full bans on sales of internal
bioenergy crops, and up to USD  100  million for ethanol and combustion engine vehicles (or for 100% sales of EVs), including
biodiesel transport fuelling and biodiesel distribution facilities.100 two adopted during 2020. (p See Renewable Energy and Climate
At a sub-national level, Iowa committed USD  3  million to its Change Policy section in this chapter.) At least 31 other jurisdictions
biofuel infrastructure programme for 2021.101 had lower targets for EVs, including 6 adopted during 2020.
Pakistan launched a plan to bring 500,000 electric motorcycles
and rickshaws and more than 100,000 electric cars, buses and
trucks into its transport system by 2025, with a target of 30% of all
vehicles running on electricity by 2030.106 Denmark committed to
a target of at least 775,000 electric or hybrid cars by 2030.107

By the end of 2020,

only 11 countries had
targets in place for

advanced
biofuels.

i The Free Zone guarantees the maintenance of the legal conditions of the project for 30 years and contributes to the competitiveness of the project.
ii In this section, EVs are defined as battery electric vehicles and plug-in hybrids.
iii Austria, Germany and Japan

75
 RENEWABLES 2021 GLOBAL STATUS REPORT

Only
FIGURE 15.
Targets for Renewable Power and Electric Vehicles, as of End-2020 8 countries
with targeted bans on
internal combustion
engine vehicles have
100% renewable power
targets.

Level of national
renewable power
share targeted for
jurisdictions with
EV targets

91-100%

81-90%

71-80%
Balearic Islands
61-70%

51-60%
Hainan Province
41-50%

31-40%

21-30% Sub-national renewable

power target
11-20%
100% electric vehicle target or targeted ban
1-10% on internal combustion engine vehicles

Note: Renewable power targets include only targets for a specific share of electricity generation by a future year. Where a jurisdiction has multiple targets, the
highest target is shown. Nepal and Quebec show actual renewable power shares; both jurisdictions along with Iceland and Norway have already achieved
nearly 100% renewable power. Electric vehicle targets vary; for details, see Reference Tables R6 and R8 in GSR 2021 Data Pack.
Source: REN21 Policy Database. See Reference Tables R6 and R8 in GSR 2021 Data Pack.

In 2020, several countries introduced financial incentives Some jurisdictions developed an integrated set of policies
for EVs as part of their COVID-19 recovery packages. (p See to promote EV adoption. As part of its 10-year climate plan,
Sidebar 3.) Among new financial incentives for EVs that were Greece pledged EUR 100 million (USD 123 million) for purchase
unrelated to COVID-19, Poland introduced purchase subsidies subsidies for EVs (including electric taxis and motorbikes) and
for electric cars, vans and taxis.108 for the installation of public EV charging stations across the
Several governments announced plans for public procurement country, as well as tax deductions for EV charging.112 El Salvador
enacted a new law establishing preferential tax treatment for
of EVs. In Australia, the state government of New South Wales
electric and hybrid vehicles and ensuring dedicated EV parking
tripled its public fleet procurement targets for hybrids and EVs
spaces in public (and some private) lots.113 At the sub-national
to around 900 new hybrid or EVs annually, with around 300 of
level, New Jersey (US) passed a law aimed at electrifying the
these vehicles being all-electric.109 The US state of New York
committed to providing USD 16.4 million for its public transport state’s transport sector, which included a target for 85% of
authorities to procure electric buses.110 vehicles sold to be electric by 2040, financial incentives of up to
USD 5,000 for EV purchases and a commitment to install 1,400
In 2020, at least 7 governments implemented policies to public EV chargers.114
support EV charging. In the United States, California provided
USD  233  million to install public EV charging stations, and
Hawaii passed a law to provide grants for adding and upgrading
charging infrastructure.111

76
 02

RAIL, AVIATION, SHIPPING AND PORTS fuel scheme.120 A few jurisdictions advanced policy support for
the use of renewables in ports. The Spanish Port Authority of
Although rail, aviation and shipping are the fastest growing
Valencia committed to building 8.5 MW of solar PV at two of
transport sectors and account for a rising share of total final
its ports on Spain’s coast, and Portugal and the Netherlands
energy use in transport, they continue to receive much less
signed a memorandum of understanding to connect Portugal’s
policy attention than road transport. This is in part because
renewable hydrogen project with a seaport in the Netherlands.121
road transport remains responsible for most transport energy
use, and because renewable fuel options for these other sectors Only one country had a new biofuel blending policy for aviation

POLICY LANDSCAPE
remain costlier than fossil fuels.115 Additional challenges include by year’s end, with Norway’s blending mandate of 0.5% biofuels
the fragmented, international nature of rail, aviation and shipping, in all aviation fuel entering into force in 2020.122 By year’s end,
which makes co-ordinated actions more difficult, and the lack only four countries had biofuel targets for the aviation sectori.
of commercially available renewable technologies that can be However, other plans to support renewables in aviation advanced.
applied cost-effectively at scale.116 For example, the EU held a public consultation for its draft plan
(ReFuelEU) to cut emissions 55% (replacing a previous target of
Most renewable energy initiatives in the rail sector are aimed
40%) and to scale up the use of renewable biojet fuel (also called
at supporting renewable electricity. In 2020, just two countries
sustainable aviation fuel), including through a blending mandate,
enacted new policies and targets to advance the use of
auctioning mechanism, funding and monitoring.123
renewables in rail transport. India set a target to electrify 7,000
rail kilometres by 2020-2021 and to electrify all routes on its At the national level, France was in the process of adopting
broad-gauge rail network by 2023, while also advancing plans legislation as part of its 2021 budget that would require planes
to integrate rising amounts of renewable power capacity for that refuel in the country to use at least 1% sustainable aviation
its operations as well as efficiency and other sustainability fuel from 2022, with the blend increasing to 2% by 2025, 5% by
improvements.117 France’s national railway company committed 2030 and 50% by 2050.124 Germany published a draft law that
to meeting a portion of its electricity needs using renewable would require airlines to increase sustainable aviation fuel of
electricity and signed a renewable electricity power purchase non-biogenic origin to 0.5% by 2025, 1% by 2028 and 2% by
agreement to provide around 2% of the electricity consumption 2030.125 Sweden planned to introduce an emission reduction
of all national passenger trains.118 In the private sector, UK-based requirement for aviation fuel sold in the country of 0.8% in
Network Rail became the first railway organisation to set a 2021 and increasing to 27% by 2030.126 Meanwhile, the United
science-based target in line with the Paris Agreement’s goal to Kingdom’s Jet Zero Council, a public-private partnership, began
limit global temperature rise to 1.5  degrees Celsius above pre- supporting sustainable aviation fuel through R&D.127
industrial levels.119 Alongside the somewhat slow public policy support for
During 2020, no jurisdictions adopted new targets to advance renewables in the rail, shipping and aviation sectors, several
the use of renewables in shipping, and only one country private sector players moved forward on their own to
added renewable energy policy support in the sector. The implement initiatives and programmes to support the uptake
Netherlands announced plans obliging suppliers of heavy fuel of renewables in transport. (p See Transport section in Global
oil and diesel for inland shipping to take part in its renewable Overview chapter.)

i Countries with existing biofuel targets in aviation include Brazil (10% by 2030), Finland (30% by 2030), Indonesia (5% by 2025) and Norway (0.5% by 2020 and
30% by 2030)

77
 RENEWABLES 2021 GLOBAL STATUS REPORT

POWER Targets continued to be a popular form of intervention to spur

investments in both centralised and distributed renewables.
As in previous years, the power sector continued to receive By the end of 2020, 137 countries had some form of renewable
the most renewable energy policy attention in 2020. Policies electricity target (down from 166 countries in 2019). (k See
to support renewable electricity generation include targets, Reference Table R6 in GSR 2021 Data Pack.) In addition, many
renewable portfolio standards (RPS), feed-in policies (tariffs and electric utilitiesii (both private and government-owned) have set
premiums), auctions and tenders, renewable energy certificates targets for increasing shares of renewable power.129 (p See Box 5.)
(RECs, or Guarantees of Origin – GOs), net metering, financial
Of the countries and states/provinces that set new renewable
incentives (such as grants, rebates and tax credits) and policies
power targets in 2020, 2 set targets for 100% (or more) renewable
to encourage self-consumption – as well as various enabling
electricity. Austria’s new target for 100% renewable electricity by
policies.
2030 represents an almost 50% increase of renewable electricity
A global trend in the power sector is the increasing decentralisation from 2020 levels.130 Nauru committed to 100% renewable energy
of power generation. The uptake of renewable distributed by 2050, In line with its target for net zero greenhouse gas
generationi is accelerating, particularly for larger commercial and emissions by that year.131 At the sub-national level, the governor
industrial consumers but also for residential consumers; however, of Rhode Island (US) signed an executive order for renewables to
it still accounts for only a small share of electricity generation provide all of the state’s electricity by 2030.132 The Australian state
worldwide.128 of Tasmania announced a renewable power target of 200% by
2040, to be fulfilled in part by exporting excess renewable power
to other parts of the country.133

BOX 5. Utility-Led Activity to Support Renewables

In some places, electric utilities are responsible for the Utilities can play a key role in encouraging the integration
infrastructure needed to deliver electricity to consumers, and and use of renewables by implementing their own renewable
they may own the generation systems as well. Utilities thus energy targets. For example, Ørsted in Denmark set a target
have an important role to play in enabling increased uptake for more than 99% renewable energy generation by 2025
and integration of renewables. In some jurisdictions, utilities’ and had already reached a 75% share as of 2018. In Uruguay,
roles and responsibilities are changing in response to both UTE set a target of 100% renewable electricity generation,
the proliferation of distributed energy resources and rising 98% of which was achieved by 2017. Greece's biggest power
electrification of transport and heating. utility (51% government owned) pledged to shut down most
of its coal-fired plants by 2023 and committed EUR 3.4 billion
(USD  4.2  billion) to expand its use of renewables and
modernise the Greek distribution grid.
At a sub-national level, by the end of 2020 at least 19  US
utilities had committed to targets of 50% or 100% renewable
generation in the coming decades, including at least 6
that have set net zero emission targets. While some have
committed to phasing out “coal-only” plants, many still plan
to continue building natural gas plants and infrastructure and
are relying largely on offsets to reach net zero goals.
Source: See endnote 129 for this chapter.

i Distributed generation, also called decentralised generation, refers to generation of electricity from sources at a relatively small scale and near the point of
consumption, as opposed to centralised generation sources such as large power plants. Distributed generators can be renewable (e.g., rooftop solar PV) or
fossil-based (e.g., distributed natural gas generation).
ii A utility is defined as an entity engaging in the generation and/or delivery of energy (including, but not limited to, electricity and natural gas) to consumers in a
specific geographical area/jurisdiction. Because utilities can be generators, distributors and retailers of energy, they often own and operate network infrastruc-
ture. Utilities can be publicly or privately held, and in many cases governments or municipalities still hold a large (or majority) stake in a private utility. Utilities
traditionally have been state-owned, vertically integrated monopolies. However, since the 1990s many jurisdictions have adopted reforms including unbundling
of the energy sector and liberalisation of the energy market, generally giving consumers more choice in electricity and gas suppliers.

78
 02

Many other countries set targets in 2020 for renewable electricity EU raised its offshore wind power capacity target to 60 GW by
shares lower than 100%, demonstrating the scope of ambition 2030 (up from the existing 2020 capacity of 25 GW) and 300 GW
among governments around the world. Zimbabwe set a target by 2050, and set targets for ocean power capacity of 1 GW by
for 16.5% renewable installed power capacity by 2025 and 30% 2030 and 40 GW by 2050 (up from the existing 2020 capacity of
by 2030.134 Saudi Arabia announced a target of 50% renewable around 11 MW).142
electricity generation by 2030, and Israel set a target of 30% In the United States, the state of Arizona approved a plan for
renewable electricity by 2030, with an intermediate target of 20% 100% “carbon-free” power by 2050 (including nuclear as well

POLICY LANDSCAPE
for 2025.135 Papua New Guinea committed in its updated NDC to as renewables).143 Virginia set a 100% carbon-free electricity
raising the share of grid-connected renewable power capacity
target through its renewable portfolio standard (RPS), as well
from 30% in 2015 to 78% in 2030 (although down from its earlier
as targets for scaling up investment in energy efficiency, energy
target of 100% renewable electricity by 2030), conditional upon
storage, and solar and wind power.144 Virginia joined at least 8
funding support from other nations.136 other US jurisdictionsi that had already made 100% carbon-free
In Asia, the Republic of Korea’s ninth long-term energy plan electricity RPS commitments (many of which include 100%
included targets for expanding the share of renewables in the renewable electricity), and at least 12 additional states were
electricity mix from 15.1% in 2020 to 40% by 2034.137 Japan considering such commitments by mid-2020.145
announced a target for 50% renewable electricity generation Feed-in policiesii, including feed-in tariffs (FITs) and feed-in
by 2050 as a means of achieving its carbon neutrality goal.138 premiums (FIPs), can be used to promote both large-scale
In Uzbekistan, a new strategy on electrical generation includes
(centralised) and small-scale (decentralised) renewable power
targeted shares of 8% solar power and 7% wind power in total
generation. Although these remain among the most widely used
electricity generation by 2030.139
policy mechanisms for supporting renewable power, the trend
Several targets were set or revised in Europe. The United Kingdom continued away from administratively set feed-in pricing policies
announced a new wind power capacity goal that boosts the to the use of competitive tenders or auctions for large-scale power
previous target for 30 GW of offshore wind by 2030 to 40 GW.140 generation.146 (p See Figure 16.) FITs nevertheless remained
Hungary’s new climate change strategy sets a target for 90% popular in 2020 and by year’s end were in place in 83 jurisdictions
fossil fuel-free electricity production by 2030 (to be achieved at the national and state/provincial levels (unchanged from 2019).
through nuclear as well as renewable power).141 Regionally, the (k See Reference Table R10 in GSR 2021 Data Pack.)

i US states and jurisdictions with 100% renewable or “carbon-free” electricity targets include California, Hawaii, Maine, Nevada, New Mexico, New York, Virginia,
Washington and the District of Columbia.
ii Feed-in policies may focus on a certain type or scale of renewable energy technology or may apply to many types and scales of technologies.

FIGURE 16.
Renewable Energy Feed-in Tariffs and Tenders, 2010-2020

Number of countries
120
116 The shift towards
competitive
100 auctions
and tenders
83 continued
in 2020.
80

60

40

20

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Feed-in tariff / premium payment Tendering

Note: A country is considered to have a policy (and is counted a single time) when it has at least one national or state/provincial-level policy.
Source: REN21 Policy Database. See Reference Tables R10-R11 in GSR 2021 Data Pack.

79
 RENEWABLES 2021 GLOBAL STATUS REPORT

During 2020, at least nine countries took new action on renewable Some governments
energy feed-in policies. In at least four countries, these policy modified their auction At least 4 countries
changes were to support or maintain existing programmes. Japan design in 2020. Germany strengthened support for
committed to transitioning its FIT to a FIP programmei starting in
2022, and Vietnam set new rates for its FIT programme, ensuring
launched its first tender
under a new technology- feed-in policies
its continuation following a period of policy uncertaintyii.147 Turkey, neutral innovation auction in 2020, while 5 countries
which previously had planned to end its FITs in 2020, allocated programme, which grants cut back support.
TRY 3.9 billion (USD 570 million) to the programme and extended a fixed market premium
it until 30 June 2021.148 Moldova approved 15-year FITs for on top of spot market
renewable energy projects of 1 MW or less.149 prices (instead of the
In contrast, at least five countries, almost exclusively in Europe, sliding FIP awarded via
cut back support for FITs by either reducing existing payments traditional renewable
or cancelling their programmes in favour of auctions or tenders. energy auctions).158 The UK government decided to allow solar
PV, onshore wind power, hydropower, landfill gas, sewage gas
The Czech government announced retroactive cuts for FITs
and energy from waste to participate in the country’s 2021
granted to existing solar PV, wind and hydropower projects, and
power capacity auction, for the first time since 2015.159
France retroactively cut FIT contracts signed between 2006
and 2010 for solar PV projects larger than 250 kilowatts (kW).150 Most net metering policies compensate the owners of
Ukraine reduced its FIT payments for some wind and solar renewable power systems for surplus electricity fed into the grid.
projectsiii and announced that, starting in 2022, the FIT for These policies often do not distinguish between centralised/
ground-mounted solar projects of 1  MW-plus would be decentralised and large-/small-scale generation, although in
replaced by the country’s auction regime (which came into some jurisdictions the focus is exclusively on small-scale or
force in January 2020).151 Switzerland provided CHF 470 million distributed renewable energy. Of the net metering policies that
(USD 532 million) to eliminate the waiting list for FIT contracts do not distinguish between size or type of generation, 7 new
for small-scale solar PV systems, but also announced plans programmes were added in 2020, bringing the total number
to replace FITs for large-scale solar PV with an auction of countries, states and provinces with net metering policies
mechanism.152 Outside of Europe, China announced plans to to 72 by year’s end (compared to 70 in 2019).
phase out FITs for solar PV starting in 2021.153 During 2020, Botswana launched a new net metering programme
Meanwhile, at least 33 countries held renewable energy for both large and small rooftop solar PV systems.160 Tunisia issued
a decree allowing private companies that generate renewable
auctions or tenders at the national or sub-national levels
power for their own use to sell any excess generation to the
during 2020 (down from 41 countries in 2019). At least 3 of these
national utility under net metering rules.161 Zimbabwe launched a
auctions or tenders were technology-neutral. (k See Reference
net metering programme for rooftop solar PV, and Saudi Arabia
Table R11 in GSR 2021 Data Pack.) Many of the auctions and
established a new net billing programme for small-scale (1  kW
tenders took place in Africa, including in Angola, Chad, Djibouti
to 2 MW) distributed solar PV.162 At the sub-national level, Kerala
and Nigeria, continuing the trend from previous years.154
(India) introduced a net metering programme for residential
At least 6  countriesiv adopted renewable energy auctions or systems under 1 MW, and the US state of Virginia expanded its
held auctions for the first time. For example, the Slovak Republic net metering cap from 1% to 6%.163
launched its first technology-neutral, large-scale renewable
Despite the popularity of net metering in many places,
energy auction.155 Bhutan launched its first tender for renewable
some jurisdictions have begun to transition away from these
power capacity to build the country’s first solar PV plant, and
programmes or have modified them to charge customers fees
the Philippines published a policy governing “green energy”
for participatingv. Dubai (United Arab Emirates) announced that
auctions, the first of which was expected to be held in 2021.156
its net metering programme will no longer apply to large-scale,
Croatia introduced a tender scheme in which renewable energy
groundmounted projects and capped the maximum capacity
and co-generation projects will be awarded a FIP above spot
for rooftop PV systems at 2,080 kW.164 Egypt confirmed plans to
market prices.157
impose a “merger fee” on net-metered solar PV systems in the
country, although as of October 2020 the fee had not yet been
determined.165 The Belgian region of Wallonia also announced
a fee for net-metered systems, which the government will
reimburse at least partially until 2024.166
i Under Japan’s FIT programme, the purchase price for the end-user of electricity is determined at a fixed rate regardless of the variation in market prices. Under the
new FIP programme, renewable energy projects will receive a certain premium on top of the market price for the electricity that they generate starting in 2022.
ii Vietnam increased the FIT for biomass power projects and set new FIT rates for utility-scale, rooftop and floating solar PV installations.
iii Ukraine reduced FIT payments by: 7.5% for solar projects with installed capacity below 1 MW and wind projects commissioned during 2015-2019; 15% for
solar projects with installed capacity exceeding 1 MW; and 2.5% for plants that begin operation up to the end of 2022.
iv The six countries that held auctions for the first time in 2020 were Bhutan, Croatia, Mozambique, Myanmar, Philippines and the Slovak Republic. See Reference
Table R11 in GSR 2021 Data Pack.
v Typically, under a net metering arrangement, customers have lower electricity bills because they generate a portion of their own power. However, these
customers may not be covering as much of the costs to maintain grid infrastructure as those who do not self-generate, and these costs are then shifted
to these other customers. Some governments have chosen to counteract this by charging a fee to net-metered customers.

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Some US states have pulled back from net metering, either (USD  307) per kW and for systems integrated into buildings to
implementing caps or adopting successor policies. For example, EUR 350 (USD 429) per kW.173 Greece allocated EUR 850 million
Kentucky committed to establishing new crediting structures (USD  1,044  million) for homeowners to install solar PV systems
based on dollar value rather than kilowatt-hour netting.167 and energy storage on residences.174 The Netherlands doubled the
Virginia enacted a bill directing regulators to develop a net funding available under its green energy subsidy programme to
metering successor when a certain installed capacity threshold EUR 4 billion (USD 4.5 billion), and Spain provided EUR 181 million
is reached, while Illinois hit its net metering cap and initiated a (USD 222 million) for renewable energy projects in seven regions.175

POLICY LANDSCAPE
process to transition away from net metering.168 Utah established
Switzerland provided CHF  470  million (USD  532  million) to
a net metering successor that provides compensation at a
expand renewable energy, with a focus on new solar PV systems,
rate between the retail cost and the avoided cost for exported
and allocated CHF 46 million (USD 52 million) to its residential
energy.169 New York approved an alternative to net metering for
and commercial rooftop rebate programme to stimulate
residential and small commercial customers that will include demand.176 The United Kingdom, meanwhile, set out plans to
new monthly fees, but it delayed implementation to 2022 due
become the world leader in wind energy, including committing
to the COVID-19 crisis.170 Arkansas regulators allowed utilities to
GBP  160  million (USD  217  million) to upgrade ports and
propose net metering alternatives beginning in 2023.171 infrastructure along coastlines to increase offshore wind power
Financial incentives for renewable power were especially capacity.177
important in 2020 as a result of the COVID-19 pandemic. While
Elsewhere, Colombia made it easier to access tax incentives for
many of these incentives were tied to economic recovery
renewables by halving the time required to secure tax deductions,
packages, not all were. For example, the EU, as part of its Green
customs exemptions and accelerated depreciation rates for
New Deal, released details of a new financing mechanism
renewable power technologies.178 Turkey slashed the administrative
intended to bring together renewable energy investors and project
fee charged to owners of rooftop solar PV systems (10-100 kW),
developers through regular public tenders and to allow Member
reducing it from TRY  529 (USD  72) to TRY  278 (USD  38).179
States to invest in renewables projects in other countriesi.172
Jordan launched a programme offering 30% rebates for installing
Within Europe, Austria doubled the budget for its residential residential solar PV systems below 3.6 kW, and Israel committed
solar subsidy programme (capacities up to 5 kW), bringing ILS 80 billion (USD 25 billion) to additional solar PV deployment to
the rebate for installed grid-connected capacity to EUR  250 support a target of 30% renewable power by 2030.180

i Renewable energy generated will count towards the targets for both the host and the contributing states, with the split based on the share of investment.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

At a sub-national level, the Indian state of Uttar Pradesh COMMUNITY ENERGY ARRANGEMENTS
announced subsidies for residential solar rooftop projects
Through small-scale community energy arrangements, residents,
(between 1  kW and 10  kW), depending on the project size
businesses and others located within a relatively small geographic
and location.181 In Australia, New South Wales unveiled a
area are able to develop, own, operate, invest in and/or benefit
AUD  32  billion (USD  25  billion) plan to deliver 12  GW of new
from a renewable energy projectiii. Policy support plays a crucial
renewable energy capacity and 2  GW of storage capacity by
role in these arrangements and includes measures supporting
2030, and Victoria adopted an interest-free loan programme
self-consumption, virtual net meteringiv and various forms of shared
for landlords that will provide subsidies of up to AUD  3,700
ownershipv of renewables, including community solar.192
(USD 2,835) for installing a rooftop solar PV system.182
In 2020, Chile introduced rules giving people who own small-
China, in contrast, reduced some financial incentives for
scale solar PV systems for self-consumption the option of
renewables in 2020. It ended funding completely for new
supplying power to multiple consumers, thereby creating “energy
offshore wind farms and halved its budget for subsidising
communities”vi.193 France similarly updated its legislation to
new solar power from CNY  3  billion (USD  460  million) to
allow consumers and producers of renewables to create energy
CNY  1.5  billion (USD  230  million).183 Company efforts to meet
communities on low-voltage networks.194 Italy launched a pilot
deadlines in China for the phase-out of the onshore wind power
programme that allows homes, businesses and public entities with
feed-in tariff resulted in a spike in wind power investment
rooftop solar PV systems of 200 kW or less to own, generate, sell,
during the year.184 (p See Investment chapter.) However, China
store and distribute renewable energy; to boost the development
also committed to increasing grants for solar and wind power
of these energy communities, the government provides a 20-year
starting in 2021.185
tariff of EUR 0.10 to EUR 0.11 (USD 0.12 to USD 0.14) per kWh of
In addition to net metering, other policies to encourage power shared among members.195 Montenegro made it possible
renewable self-consumption have evolved as residential, for individuals who generate renewable electricity to store
commercial and industrial power consumers become more and sell surplus power to others, either individually or through
interested in generating their own power. In 2019, California aggregation with other generation systems.196 At a sub-national
became the first jurisdiction to make solar PV mandatory for level, the US state of Virginia established a multi-family shared
newly constructed homes starting in 2020, although some solar programme in 2020.197
loopholes exist.186 The German state of Bremen passed similar
legislation in 2020 to require solar PV on new homes and public
buildings.187
Tradeable renewable energy certificates (RECs, also called
Guarantees of Origin or GOs in Europe)i also can be used to
support renewable electricity, although concerns have been
raised about additionalityii.188
Several countries and regions across all major continents already
permit the use of RECs, and in 2020 a few more countries
allowed their use.189
Bahrain announced the
issuance of the country’s Support for renewables in
first-ever REC, through an
electronic platform.190 In
community
West Africa, companies energy
were able at the start of the increased in at least
year to begin purchasing 5 countries during 2020.
RECs documented by
the International REC
Standard.191

i RECs are market-based instruments that represent the property rights to the environmental, social and other non-power attributes of renewable electricity
generation. A REC certifies the ownership of 1 megawatt-hour of renewable electricity. Unbundled RECs may be bought and sold separately from the physical
sale of electricity.
ii A unit (for example, a REC or a greenhouse gas emission reduction) is considered “additional” if it arises because of the incentives associated with the
existence of a specific policy rather than as part of a business-as-usual practice.
iii Communities may vary in size and shape (for example, schools, neighbourhoods, city governments, etc.), and projects vary in technology, size, structure,
governance, funding and motivation. See REN21’s Renewables in Cities Global Status Report.
iv Virtual net metering utilises the same compensation mechanism and billing schemes as net metering without requiring that a customer’s distributed general
system (or share of a system) be located directly on site.
v Shared ownership refers to the collective ownership and management of renewable energy assets.
vi These energy communities will enable users to co-ordinate a shared solar PV array with a single grid connection to inject surplus power back into the
electricity network, and also allow for distributed systems to be connected at different locations from their consumers.

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SYSTEMS INTEGRATION OF VARIABLE Policies to improve electricity infrastructure, including

policies aimed at expanding or modernising transmission and
RENEWABLE ELECTRICITY distribution systems, also can facilitate VRE integration and boost
resilience. 202 In 2020, India’s government-owned transmission
As the penetration of variable renewable energy (VRE) sources
company approved seven new transmission projects to support
such as solar and wind power increases, maintaining the
renewable generation projects in the country. 203 South Africa’s
reliability of power systems may become more challenging and
public utility Eskom announced plans for transmission expansion
costly.198 Successful integration of VRE is critical to ensuring

POLICY LANDSCAPE
to strengthen the grid and to connect 30  GW of additional
an efficient and effective power system.199 (p See Systems
capacity, much of it expected to come from renewable energy
Integration chapter.) Increasingly, jurisdictions with relatively high
projects. 204 In the United Kingdom, energy utility regulator Ofgem
shares of VRE (both large-scale/centralised and small-scale/
unveiled a five-year funding package that provides more than
decentralised generation) have implemented policies to ensure
GBP 3 billion (USD  4.1  billion) for transmission grid upgrades
more successful VRE integration. This includes policies related
to ensure that the network can manage rising levels of VRE. 205
to the design and operation of power markets, transmission
In Australia, a number of states including New South Wales,
and distribution system enhancements, and policies supporting
Queensland and Victoria announced that they would strengthen
energy storage. 200
transmission networks to support the deployment of planned
Changes to power market rules can increase system flexibility Renewable Energy Zones. 206
and control and make it easier for both centralised and distributed
Policies that promote energy storage deployment also help
VRE, as well as energy storage systems, to participate in
with successful VRE integration, since storage can make it easier
electricity markets. For example, in 2020 the US Federal Energy
to balance the supply and demand of renewable generation
Regulatory Commission expanded its access rules to enable
and minimise the curtailment of electricity. 207 In 2020, Turkey’s
renewable distributed energy generators and energy storage to
government introduced new rules for the grid connection of
compete in regional wholesale electric markets, alongside large-
energy storage systems to encourage storage projects linked
scale generators. 201
to rooftop solar PV. 208 New South Wales (Australia) announced
funding for four large-scale battery projects to support
renewables as the state transitions away from coal. 209
Policies supporting solar-plus-storage explicitly link solar PV
and energy storage. In 2020, both Austria and Italy provided
financial support for solar-plus-storage installations. Austria
launched a EUR 36 million (USD 44 million) rebate programme
for small solar-plus-storage installations, and the regional
government of Lombardy (Italy) allocated EUR  20  million
(USD 25 million) in rebates to promote energy storage coupled
with residential and commercial solar PV. 210

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 RENEWABLES 2021 GLOBAL STATUS REPORT

TABLE 6.
Renewable Energy Targets and Policies, 2020
Country Fiscal Incentives and
Regulatory Policies Public Financing

heat feed-in tariff, fossil

production tax credits

Net metering/billing

Reductions in sales,

loans, grants, capital

energy, CO 2 , VAT or

subsidies or rebates
Electric utility quota

renew­able transport

obligation/mandate,
Renewable energy

Renewable energy

obligation/mandate
premium payment

Energy production
fuel ban for heating

Public investment,
in INDC or NDC

Renewable heat
obligation/RPS
Feed-in tariff/

Tradable REC
Biofuel blend,

Investment or
other taxes
Tendering

payment
targets
High Income Countries
Andorra
Antigua and Barbuda E, P
Australia P, P*(N), T* , , 6
,
*
Austria E, P, HC(O), T 6 6
,
Bahamas, The E, P
Bahrain E, P
Barbados1 E, P
Belgium E, E*, P(O), P*(O), HC, T 6

Brunei Darussalam E
, 6,7
,
Canada P* ,  , * 6
, 6
*7
Chile P , 6 6
, 6

Croatia E, P(O), HC(O), T 6 6

Cyprus E(N), P(O), HC(O), T(N)

Czech Republic E, P(O), HC(O), T 6 6

Denmark E, P(N), HC(O), T(O) 6 8, 9

, 6 6
,
Estonia E, P, HC, T , , 6

Finland E, P(O), HC(O), T 6

, 7 6
,
France E, P(N), HC, T , 6 6 6

Germany E, P(N), HC(O), T 9

, 6
,
Greece E, HC(O), P, T 8 6
, 6
,
Hungary E(N), P(N), HC(O), T(N) , 6

Iceland E(O), T(O), HC(O), P(O)

Ireland E, P(N), HC(O), T(O) 8 6 6, 7

Israel E(N), P(N), T , 6

,
Italy E, P, HC(O), T  6, 7,
, 6
*,
Japan E, P , , 6
Korea, Republic of E, P 6

Kuwait P
Latvia E(N), P(O), HC(O), T(N)
Liechtenstein
Lithuania E, P, HC, T(O) 6 8
, 6
, 6

Luxembourg E, P(O), HC, T , , 6

Malta E, P(O), HC(O), T 6

Mauritius P 6

Monaco
Nauru
Netherlands E, P(O), HC, T(O) 6 8 6 6 6
, ,
New Zealand P
Norway E(O), P(O), T(O), HC(O) 7 9 6

Oman P(N)
Palau E(O), P
Panama E
Poland E, P, HC(O), T , 6
,
Portugal2 E, P, HC(O), T(N) , , 6

Qatar P
Romania E(N), P(O), HC(N), T(N) 6

San Marino
Saudi Arabia P ,
Seychelles E, P
Singapore P(O)
Slovak Republic E, P(O), HC(O), T 7 6

Slovenia E(N), P(O), HC(N), T(N) 6

Spain3 E(N), P(N), HC(O), T(N) , 6

,
St. Kitts and Nevis
Sweden E(N), P, HC(O), T(O) O
Switzerland P 6

Taipei, China P n/a

Trinidad and Tobago P
United Arab Emirates P, P*(O) * ,
E(O), P(N), P*(O), 6
, 7
,
United Kingdom T(N), HC(O)
8
,
, *
7
,  , 7 6
, 7
,
United States T(N), P*(N) * *  , , 9
 ,
, * *
Uruguay 6

Note: Please see key on last page of table.

84
 02

TABLE 6.
Renewable Energy Targets and Policies, 2020 (continued)
Country Fiscal Incentives and
Regulatory Policies Public Financing

heat feed-in tariff, fossil

production tax credits

Net metering/billing

Reductions in sales,

loans, grants, capital

energy, CO 2 , VAT or

subsidies or rebates
Electric utility quota

renew­able transport

obligation/mandate,
Renewable energy

Renewable energy

obligation/mandate
premium payment

Energy production
fuel ban for heating

Public investment,
in INDC or NDC

Renewable heat
obligation/RPS
Feed-in tariff/

Tradable REC
Biofuel blend,

Investment or
other taxes
Tendering

payment
targets

POLICY LANDSCAPE
Upper-Middle Income Countries
Albania E, T(O) ,
Argentina E, P 6 6
, 6

Armenia E, P 6

Azerbaijan P(N)
Belarus P
Belize P
Bosnia and E(O), HC(O), T(O), P
Herzegovina
Botswana P ,
Brazil P, T
Bulgaria E, P(N), HC, T(N) 6

E(N), P(N), HC(O), , 6,7

,
China T(O)  , 7
,
Colombia E, P ,
Costa Rica P 6

Cuba P
Dominica
Dominican Republic E, P
Ecuador
Equatorial Guinea
Fiji E, P
Gabon E, P
Georgia E 6

Grenada P
Guatemala P
Guyana P
Indonesia E, P, T
Iran P(O)
Iraq P(O)
Jamaica P ,
Jordan E, P, HC(O) , 6

Kazakhstan P
Kosovo E(O), P(O), HC(O) n/a
Lebanon E, P(O), HC 6 6

Libya E, P, HC(O)
Macedonia, North E, P, HC(O), T(O) 6 6

Malaysia P, HC(O), T(O)

Maldives E, P(O)
Marshall Islands E, P(O)
Mexico E(O), P(O), HC, T(O) , 6
,
E(O), P(O), HC(O),
Montenegro T(O)
Namibia P
Paraguay T(N)
Peru
Russian Federation E(O), P
Samoa E
Serbia E(O), P, HC(O), T(O)
South Africa P 6

St. Lucia P
St. Vincent and the P(O)
Grenadines1
Suriname P
Thailand E, P, HC, T , 6
, 7

Tonga P
Turkey P, HC 8
, 6

Turkmenistan
Tuvalu E, P(O)
Venezuela

Note: Please see key on last page of table.

85
 RENEWABLES 2021 GLOBAL STATUS REPORT

TABLE 6.
Renewable Energy Targets and Policies, 2020 (continued)
Country Fiscal Incentives and
Regulatory Policies Public Financing

heat feed-in tariff, fossil

production tax credits

Net metering/billing

Reductions in sales,

loans, grants, capital

energy, CO 2 , VAT or

subsidies or rebates
Electric utility quota

renew­able transport

obligation/mandate,
Renewable energy

Renewable energy

obligation/mandate
premium payment

Energy production
fuel ban for heating

Public investment,
in INDC or NDC

Renewable heat
obligation/RPS
Feed-in tariff/

Tradable REC
Biofuel blend,

Investment or
other taxes
Tendering

payment
targets
Lower-Middle Income Countries
Algeria P
Angola P
Bangladesh E, P(N) ,
Benin E, P
Bhutan E, P, HC
Bolivia P
Cabo Verde P
Cambodia E
Cameroon P
Comoros E, P
Congo, Republic of P
Côte d’Ivoire P
Djibouti E, P
Egypt E, P 6

El Salvador
Eswatini P
Ghana P
Honduras E, P
India E, P, P*, HC, T  , * , , , 6
, 7
*
Kenya E, P, HC
Kiribati E, P
Kyrgyzstan
Lao PDR E
Lesotho P
Mauritania E(O), P(O)
Micronesia, E(O), P(O)
Federated States of
E(O), P(O), HC(O),
Moldova T(O)
Mongolia E, P ,
Morocco P, HC(O) 6

Myanmar P
Nepal E(O), P
Nicaragua P
Nigeria P(N)
Pakistan E, P(N)
Palestine, State of 5 E, P(O)
Papua New Guinea E, P
Philippines E, P , 6

São Tomé and P

Príncipe
Senegal P
Solomon Islands E, P
Sri Lanka P(N), T(O)
Tanzania E, P
Timor-Leste E, P
Tunisia E, P , 6

Ukraine E, P(O), HC(O), T(O) 6

Uzbekistan E, P(N) ,
Vanuatu E, P
Vietnam E(N), P(N), T ,
Zambia
Zimbabwe T(N), P ,

Note: Please see key on last page of table.

86
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TABLE 6.
Renewable Energy Targets and Policies, 2020 (continued)
Country Fiscal Incentives and
Regulatory Policies Public Financing

heat feed-in tariff, fossil

production tax credits

Net metering/billing

Reductions in sales,

loans, grants, capital

energy, CO 2 , VAT or

subsidies or rebates
Electric utility quota

renew­able transport

obligation/mandate,
Renewable energy

Renewable energy

obligation/mandate
premium payment

Energy production
fuel ban for heating

Public investment,
in INDC or NDC

Renewable heat
obligation/RPS
Feed-in tariff/

Tradable REC
Biofuel blend,

Investment or
other taxes
Tendering

payment
targets

POLICY LANDSCAPE
Low Income Countries
Afghanistan E, P
Burkina Faso E, P
Burundi E, P
Central African P
Republic
Chad P
Congo, Democratic E, P
Republic of
Eritrea P
Ethiopia E, P
Gambia E, P
Guinea E, P
Guinea-Bissau E, P
Haiti E, P
Korea, Democratic
People's Republic
Liberia E, P, T
Madagascar E, P
Malawi E, P, HC
Mali E, P
Mozambique P, HC, T
Niger E, P(O)
Rwanda E
Sierra Leone P, HC
Somalia P
South Sudan E, P
Sudan E, P
Syria P
Tajikistan P(O)
Togo E, P(O)
Uganda P
Yemen E(O), P, T(O), HC(O)

Targets Policies
E Energy (final or primary) New (one or more policies of this type) Existing national policy or tender framework
P Power * New sub-national (could include sub-national)
H C Heating or cooling Existing sub-national policy or tender framework
Revised (from previously existing) (but no national)
T Transport * Revised sub-national National tender held in 2020
* Indicates sub-national target Removed Sub-national tender held in 2020
(R) Revised
(N) New
(O) Removed or came to term
Renewable energy not included in NDC

1 Certain Caribbean countries have adopted hybrid net metering and feed-in policies whereby residential consumers can offset power while commercial
consumers are obligated to feed 100% of the power generated into the grid. These policies are defined as net metering for the purposes of the GSR.
2 FIT support removed for large-scale power plants.
3 Spain removed FIT support for new projects in 2012. Support remains for certain installations linked to this previous scheme.
4 State-level targets in the United States include RPS policies.
5 The area of the State of Palestine is included in the World Bank country classification as “West Bank and Gaza”.
6 Includes renewable heating and/or cooling technologies.
7 Aviation, maritime or rail transport
8 Heat FIT
9 Fossil fuel heating ban
Note: Countries are organised according to annual gross national income (GNI) per capita levels as follows: “high” is USD 12,536 or more, “upper-middle”
is USD 4,046 to USD 12,535, “lower-middle” is USD 1,036 to USD 4,045 and “low” is USD 1,035 or less. Per capita income levels and group classifications
from World Bank, “Country and lending groups”, http://data.worldbank.org/about/country-and-lending-groups, viewed May 2021. Only enacted policies are
included in the table; however, for some policies shown, implementing regulations may not yet be developed or effective, leading to lack of implementation or
impacts. Policies known to be discontinued have been omitted or marked as removed or expired. Many feed-in policies are limited in scope of technology.
Source: REN21 Policy Database. See GSR 2021 Data Pack at www.ren21.net/gsr-2021.

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03
Ørsted’s strategic suppliers are asked to disclose their own emissions, set science-based carbon
reduction targets and use 100% renewable electricity in manufacturing, among other key requirements.
 03

03 MARKET AND
INDUSTRY TRENDS

BIOENERGY
KEY FACTS Bioenergy involves the use of biological materials for
energy purposes. A wide range of materials can be
used, including residues from agriculture and forestry,
  Modern bioenergy provided 5.1% of solid and liquid organic wastes (including municipal solid waste
total global final energy demand in (MSW)i and sewage), and crops grown especially for energy.1
2019, accounting for around half of all Many different processes can convert these feedstocks into heat,
renewable energy in final energy electricity and fuels for transport (biofuels). While some of these
consumption. processes are fully established, others are in the earlier stages of
development, demonstration and commercialisation. 2
  Modern bioenergy for industrial process
heat grew around 16% between 2009 and BIOENERGY MARKETS
2019, while bio-heat demand in buildings
Biomass provides energy for heating in industry and buildings,
grew 7% over the same period.
transport and electricity production. Overall, bioenergy
  In 2020, global biofuel production fell accounted for an estimated 11.6%, or 44 exajoules (EJ), of total
5%, with ethanol production down 8%, final energy consumption in 2019 (latest available data). 3 More
than half of this total bioenergy came from the traditional use of
while biodiesel production rose slightly to
biomassii, which provided around 24.6 EJ of energy for cooking
meet increased demand in Indonesia, the
and heating in developing and emerging economies, notably in
United States and Brazil.
Sub-Saharan Africa.4
  Bioelectricity production grew 6% in
2020, with China the major producer.

i Municipal solid waste consists of waste materials generated by households

and similar waste produced by commercial, industrial and institutional
entities. The wastes are a mixture of renewable plant- and fossil-based
materials; proportions vary depending on local circumstances. A default
value is often applied based on the assumption that 50% of the material is
“renewable”.
ii The traditional use of biomass for heat involves burning woody biomass
or charcoal, as well as dung and other agricultural residues, in simple and
inefficient devices to provide energy for residential cooking and heating in
developing and emerging economies.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

Other more modern and BIO-HEAT MARKETS

The amount of efficient uses of bioenergyi
The use of biomass for heating has changed relatively little in
biomass used provided around half of all
renewable energy in final
recent years. 8 (p See Figure 18.) The traditional use of biomass

for heating
in developing and emerging economies is to supply energy for
energy consumption in
cooking and heating in traditional open fires or inefficient stoves. 9
2019 – an estimated 19.5
has grown 11% since 2009. (p See Distributed Renewables chapter.) The amount of biomass
EJ, or 5.1% of total global
used in these applications has decreased some 9% since 2009,
final energy demand.5
from 27.0 EJ to an estimated 24.6 EJ in 2019.10
(p See Figure 17.) Modern
bioenergy provided around Because of the negative effects of the traditional use of biomass
13.7 EJ for heating (7.3% on local air quality and public health, as well as the unsustainable
of the global energy nature of much of the biomass supply, governments and
supply used for heating), 4.0 EJ for transport (3.3% of transport international organisations are making significant global efforts
energy needs) and 1.7 EJ for global electricity supply (2.1% of the to improve access to cleaner fuels for cooking and heating.11
total).6 Modern bioenergy use has increased most rapidly in the These fuels include fossil-based liquefied petroleum gas (LPG),
electricity sector – up 27% between 2010 and 2019 – compared electricity, and cleaner forms of biomass, such as ethanol fuels
to around 15% growth for transport use and less than 5% for and wood briquettes and pellets.12
bio-heat.7 Modern bioenergy can provide heat efficiently and cleanly for
industry and for residential, public and commercial buildings. The
final user can consume biomass directly to produce bio-heat in
a stove or boiler. Alternatively, bio-heat can be produced in a
dedicated heat or district heating plant (including through the
co-generation of electricity and heat using combined heat and
power (CHP) systems) and distributed through the grid to final

i Modern bioenergy is any production and use of bioenergy that is not classified as “traditional use of biomass”. See footnote ii on previous page.

FIGURE 17.
Estimated Shares of Bioenergy in Total Final Energy Consumption, Overall and by End-Use Sector, 2019

Traditional Modern Non-

biomass bioenergy bioenergy
4.0 1.7
100%

88.4%
9.0

Electricity
24.6
Non-biomass
0.5% 4.6
75%

1.2 % 1.0 %
Heat, Transport
50%
buildings

6.5%
Traditional
biomass
2.5 % 25%
Heat, industry
5.1%
Modern
bioenergy
0%

Heat, Heat, Transport Electricity

buildings industry

Note: Data should not be compared with previous years because of revisions due to improved or adjusted data or methodology. Totals may not add up due to
rounding. Buildings and industry categories include bioenergy supplied by district energy networks.
Source: Based on IEA. See endnote 5 for this section.

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 03

consumers. Most of the biomass used for heating is wood-based COVID-19 pandemic. 22 The decline was expected to be highest
fuel, but liquid and gaseous biofuels also are used, including in industry, down a projected 4.1%, due to the curtailment of
biomethane, which can be injected into natural gas distribution industrial production in most regions (except China). 23 The use
systems.13 of bioenergy for industrial heat was expected to fall by the same
In 2019 (latest data available), modern bioenergy applications percentage, but to hold its market share. 24 Heat use in buildings
provided an estimated 13 EJ of direct heat, an 11% increase from was projected to decrease 1.8%, with most of the decline
2009.14 In addition to the direct use of bio-heat in industry and occurring in commercial heating because of increased working
buildings, bioenergy provided some 0.7  EJ to district heating and schooling from home. 25 Total bioenergy consumption in 2020
systems in 2019; 51% of this was used in industry and agriculture was expected to remain at 2019 levels. 26
and the remainder in buildings.15 Bioenergy is the major source of Industry use of biomass for heat production is primarily in bio-
renewable heat in district heating systems, accounting for 95% of based industries, such as paper and board, sugar and other food
all renewable heat supplied.16 Its contribution grew 57% between products, and wood-based industries. These industries often use

MARKET AND INDUSTRY TRENDS

2010 and 2019.17 their wastes and residues for energy, including the “black liquor”
In 2019, 9.1 EJ of biomass was used to provide heat for industry produced in paper manufacture. 27
and agriculture, meeting a combined 9.5% of these sectors’ heat Bioenergy is not yet widely used in other industries. However,
requirements.18 Bio-heat demand in the two sectors has grown biomass and waste fuels met around 6% of the cement industry’s
16% since 2009.19 Modern bioenergy provided 4.7  EJ to the global energy needs in 2019. 28 In Europe, these fuels provided
buildingsi sector in 2019, or around 5.0% of its heat demand. 20 around 25% of the energy used in cement making in 2019. 29 The
The amount of bio-heat provided to buildings has increased 7% use of biomass and waste fuels for cement production in China
since 2009. 21 is also growing. 30
Although final data for 2020 were not available at the time Bioenergy use for industrial heating is concentrated in countries
of publication, total energy use for heating was expected to with large bio-based industries, such as Brazil, China, India and
decrease around 3.1% due to the economic effects of the the United States. Brazil uses large quantities of sugarcane

i Excluding the contribution to building heating from district heating; see discussion later in this section.

FIGURE 18. Total average

Global Bioenergy Use for Heating, by End-Use, 2009-2019 annual change:

+1.2%
Exajoules
15
District heating
+5.9%
Industry

12 Buildings,
modern bioenergy

+1.4%
8

4
+0.3%

0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2019

Source: Based on IEA. See endnote 8 for this section.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

residue (bagasse) from sugar and ethanol production to generate and its introduction into gas grids, biogas provided only 4% of bio-
heat in CHP systems, producing an estimated 1.6  EJ in 2019. 31 heat in European buildings in 2019.42
India, also a major sugar producer, was the second largest user North America was the second leading user of bioenergy in
of bioenergy for industrial heat (1.4  EJ), followed by the United
buildings in 2019. More than 1.8 million US households (1.4% of the
States (1.3 EJ), which has an important pulp and paper industry. 32
total) relied on wood or wood pellets as their primary heating fuel,
Biomass can produce heat for space heating in buildings through and an additional 8% used wood as a secondary heat source.43
the burning of wood logs, chips or pellets produced from wood Use was concentrated in rural areas, with one in four rural US
or agricultural residues. The informal use of wood and other households combusting wood for primary or secondary space
biomass to heat individual residences is prevalent in developed
heating.44 Total wood use in the US residential sector amounted
economies as well as in developing and emerging ones. 33 This
to 0.55 EJ.45 In Canada, the residential heating sector used some
can be a significant source of local air pollution if inefficient
0.13  EJ of bio-heat from wood fuels in 2019.46 North America
appliances and/or poor-quality fuels are used. 34 Stringent
was the second largest regional market for pellets for building
national regulations are being introduced to control emissions
heating, up 4% in 2019 to 2.6  million  tonnes (47  PJ).47 Smaller-
from small combustion facilities. Systems that can meet these
requirements are commercially available, but at a higher cost. 35 scale markets were found in non-EU Europe (0.9 million tonnes)
Larger-scale systems, such as those used for district heating, can and Asia (0.3 million tonnes), principally in the Republic of Korea
meet air quality requirements more easily and economically. (0.2 million tonnes) and Japan (0.1 million tonnes).48

Modern use of bio-heat in buildings has been concentrated in the Europe leads in the use of bioenergy in district heating. District
European Union (EU), which accounted for 47% of this total use in heating (from all sources) supplied around 12% of the EU’s
2019, increasing 2% during the year to 3.8 EJ.36 Policy measures heat demand in 2018.49 The residential sector was the major
that aim to promote renewable heat alternatives to meet the user of district heat (45%), followed by the industrial (33%) and
requirements of the EU Renewable Energy Directive (RED) – such commercial and services (21%) sectors.50 District heating meets
as capital grants for biomass heating systems – have generated the at least 30% of heat demand in seven countries, including a 45%
growth in biomass use. Limiting the use of oil and natural gas for share in Denmark. 51
heating also plays an important role in stimulating alternative heat
This provides an important market opportunity for biomass,
sources including biomass.37 France, Germany, Italy and Sweden
which supplied around 25% of all district heating in Europe in
accounted for around half of the EU’s bio-heat demand in 2019.38
2018 (620 PJ). 52
Most of the biomass fuel used to heat buildings is in the form of
Sweden was the largest user of bioenergy for district heating
logs and wood chips. However, the use of wood pellets for heating
(130 PJ) in 2018, followed by Germany, Denmark and Finland (75 PJ
has been growing rapidly and was up 6% globally in 2019, to
each) and France (69 PJ), where the use of bioenergy grew 35%
around 19.2 million tonnes (345 petajoules, PJ).39 The bulk of the
pellets (77%) were used in residences, with the rest consumed between 2015 and 2019, promoted by the Fonds Chaleur support
at commercial premises.40 The EU remained the largest user system.53 Lithuania has the highest share of district heat from
(16.4  million  tonnes or 294  PJ), with Italy still the world’s largest biomass (65%, or 23  PJ); the country’s use of bioenergy for this
market for pellet heating (3.4 million tonnes), followed by Denmark purpose has grown three-fold since 2010, driven mainly by the need
and Germany (2.3 million tonnes each), France (1.8 million tonnes) to reduce dependency on imported oil to lower costs and improve
and Sweden (1.2  million  tonnes).41 Despite growth in the use of energy security.54 Bioenergy use has led to a 60% reduction in
biogas for heating, and particularly in the production of biomethane Lithuania’s carbon dioxide (CO2) emissions from heating.55

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TRANSPORT BIOFUEL MARKETS Brazil, the two leading

producers, accounted Although ethanol
Global production of liquid biofuels decreased 5% in 2020,
i
for 51% and 32%, production dropped
dropping from 4.0  EJ (161  billion  litres) in 2019 to 3.8  EJ
respectively, of global sharply in 2020,
(152  billion  litres), as overall demand for transport fuels fell as
a consequence of the COVID-19 pandemic. 56 While ethanol
production, followed by
China, India, Thailand and biodiesel
production
volumes declined sharply in 2020, biodiesel production and
Canada.63
use held steady. 57 Lower transport demand for diesel fuel was
offset by higher blending requirements and other factors, and US ethanol production remained steady.
the production and use of hydrotreated vegetable oil (HVO)ii fell 11% in 2020 to 53.2
increased significantly. billion litres, the lowest
level since 2014, from
The United States remained the world’s leading biofuel producer, 59.7  billion  litres in 2019.64 The country’s ethanol consumption

MARKET AND INDUSTRY TRENDS

with a 36% share in energy terms, despite a reduction in the fell 12%, mirroring the 13% decline in petrol use in transport as
country’s ethanol production. 58 The next largest producers were blending opportunities were constrained and ethanol prices fell.65
Brazil (26%) followed by Indonesia (7.0%), Germany (3.4%) and Many ethanol producers reduced output due to lower demand,
China (3.0%). 59 In total, in 2020, ethanol accounted for around negative operating margins and limited storage capacities.66
61% of biofuel production (in energy terms), fatty acid methyl
Ethanol production in Brazil decreased 6% to 34.0 billion litres,
ester (FAME) biodiesel for 33%, and HVO for 6%.60 (p See
down from 36.0 litres in 2019.67 Overall, petrol consumption in
Figure 19.) Other biofuels included biomethaneiii and a range of
the country fell some 11% due to declining demand.68 The drop in
advanced biofuels, but their production remained low, estimated
petrol use directly influences ethanol sales, as all petrol in Brazil
at less than 1% of total biofuels production.61
contains 27% ethanol by volume.69 Low oil prices also affect the
Global production of ethanol decreased 8%, from 115 billion litres competitiveness of 100% ethanol, which is widely available in the
in 2019 to 105 billion litres in 2020.62 Ethanol is produced primarily country.70 Most Brazilian ethanol comes from sugar cane, with
from corniv, sugar cane and other crops. The United States and some 350 sugar ethanol mills operating nationwide.71

i This section concentrates on biofuel production, rather than use, because available production data are more consistent and up-to-date. Global production
and use are very similar, and much of the world’s biofuel is used in the countries where it is produced, although significant export/import flows do exist,
particularly for biodiesel.
ii Hydrotreated vegetable oil is also referred to as hydroprocessed esters and fatty acids (HEFA). It is also called renewable diesel, especially in North America.
iii Often referred to as renewable natural gas (RNG), especially in North America. See Glossary.
iv The meaning of the word “corn” varies by geographical region. In Europe, it includes wheat, barley and other locally produced cereals, whereas in the United
States and Canada, it generally refers to maize.

FIGURE 19.
Global Production of Ethanol, Biodiesel and HVO/HEFA Fuel, by Energy Content, 2010-2020

Energy content (exajoules)

4.1%
4
Average annual
growth

HVO/HEFA

2 Biodiesel (FAME)

Ethanol

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note: HVO = hydrotreated vegetable oil; HEFA = hydrotreated esters and fatty acids; FAME = fatty acid methyl esters
Source: See endnote 60 for this section.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

However, a growing share of ethanol is produced from corn, While total US diesel demand fell 5% in 2020 due to the impacts
and as of mid-2020 some 16 corn ethanol production plants of the COVID-19 pandemic, biodiesel production in the country
were in operation and 7 more under construction.72 Most of rose more than 3% to 6.8  billion  litres, boosted by the federal
the plants can process both sugar cane and corn. Corn-based Renewable Fuel Standard (RFS2) and by California’s Low
ethanol production in Brazil more than doubled in 2020, to Carbon Fuel Standard (LCFS). 85 In addition, the federal Biodiesel
2.5 billion litres.73 Blender’s Tax Credit was reintroduced. 86 Increased duties on
China’s ethanol production increased 3% to 4.0  billion  litres in biodiesel imports from Indonesia and Argentina also favoured
2020 to meet growing domestic demand.74 Petrol demand in the US domestic biodiesel production. 87
country fell some 7%, but growth in ethanol demand continued In Brazil, biodiesel production rose 9% to a record 6.4 billion litres
as 10% ethanol blends (E10) were extended to more provinces.75 to meet increased domestic demand. 88 The country’s biodiesel
Production capacity doubled between 2017 and 2020, and blending requirement increased from 11% to 12% and was
several large new plants were in development.76 scheduled to rise to 15% by 2023. 89
Ethanol production in India fell some 8% in 2020 to 1.8 billion litres, In Germany, reduced diesel fuel use limited biodiesel demand,
as petrol demand dropped 13% and as lower oil prices reduced the and production fell an estimated 9% to 3.5 billion litres in 2020,
affordability of ethanol relative to unblended gasoline.77 Canadian down from 3.8 billion litres in 2019. 90 Production in France also
ethanol production remained stable in 2020, at 1.8  billion  litres, declined slightly to 2.4  billion  litres, while production in the
while in Thailand, production fell 9% to 1.5 billion litres.78 Netherlands stayed stable at 2.1 billion litres. 91
Global production of biodiesel increased slightly (less than 1%) Argentina dropped from fifth to ninth place among producers
to 46.8 billion litres in 2020, up from 46.5 billion litres in 2019.79 as biodiesel production decreased some 35% to 1.6 billion litres,
Its production is more widely distributed than that of ethanol; with US duties on biodiesel imports discouraging trade. 92
11  countries account for 80% of global biodiesel production,
HVO production, a process of hydrogenating bio-based oils fats
compared to just 2 countries for ethanol. 80 This is due to the wider
and greases, continued to grow sharply in 2020, rising 12% to
range of biodiesel feedstocks that can be processed, including
an estimated 7.5 billion litres, up from 6.5 billion litres in 2019. 93
vegetable oils from palm, soy, and canola, and a range of wastes
While early production capacity was concentrated in Finland,
and residues, including used cooking oil. In 2020, Indonesia
the Netherlands and Singapore, HVO capacity in the United
was again the lead biodiesel producer (17% of the global total),
States has increased rapidly in recent years, in line with the
followed by the United States (14.4%) and Brazil (13.7%). 81 The
surging US market for these fuels. 94 HVO use in the country is
next largest producers were Germany (7.4%), France (5.0%) and
heavily incentivised by the RFS2, by California’s LCFS and by the
the Netherlands (4.6%). 82
availability of an investment tax credit. 95 US use of HVO under the
Despite an estimated 12% reduction in demand for diesel for RFS2 grew some 48% in 2020, to 3.5 billion litres (114 PJ). 96
transport, Indonesia’s biodiesel production grew 11% in 2020, to
Biomethane is used as a transport fuel mainly in Europe and
8.0 billion litres. 83 In the face of growing dependency on imported
the United States (the largest producer and user of biomethane
oil, the blending level in the country is being increased gradually
for transport). 97 US production and use of biomethane is also
to prioritise domestically produced biodiesel, primarily from palm
stimulated by the RFS2 (which includes biomethane in the
oil. The diesel blending level was increased from 20% to 30% in
advanced cellulosic biofuels category) and by California’s LCFS,
January 2020 and was expected to rise to 40%. 84
thereby qualifying for a premium. 98 US biomethane use under the
RFS2 increased 24% in 2019 to around 41 PJ. 99
In Europe, the use of biomethane for transport increased 74%
in 2019 to 14  PJ (latest data available).100 Sweden remained the
region’s largest biomethane consumer, using nearly one-third of
the total, followed by the United Kingdom (where biomethane
use increased five-fold in 2019), Germany and Italy (where use
rose from nearly zero to 1.7 PJ in 2019).101
Although efforts to develop other “advanced biofuels” continued,
and some new production
capacity was installed (p
The United States and see Industry section in
Brazil, the two leading this chapter), these fuels
producers of biofuels, have been produced
account for around 80% of and used only in small

global quantities to date. For

example, the contribution

production. of cellulosic ethanol under

the US  RFS2 scheme
declined by a factor of five
in 2020 to below 0.2 PJ.102

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BIO-POWER MARKETS In the EU, bio-power capacity grew around 4% in 2020 to 48 GW,
and generation increased 4% to 205  TWh, providing 6% of all
Global bio-power capacity increased an estimated 5.8% in
generation.116 This increase occurred as countries pushed to meet
2020 to around 145 gigawatts (GW), up from 137 GW in 2019.103
the region’s mandatory national targets for 2020 under the RED.117
China had the largest capacity in operation by the end of 2020,
Germany remained the region’s largest bioelectricity producer,
followed by the United States, Brazil, India, Germany, the United
mainly from biogas: capacity increased 400  MW in 2020 to
Kingdom, Sweden and Japan.104
10.4  MW, and generation rose 0.8% to 51  TWh.118 Generation
Total bioelectricity generation rose some 6.4% to around surged in the Netherlands (up 90%) to 11  TWh as the volume
602  terawatt-hours (TWh) in 2020, from 566  TWh in 2019.105 of wood pellets co-fired in large power stations increased
(p See Figure 20.) China remained the leading producer of bio- significantly, supported by the SDE feed-in premium scheme and
power, followed by the United States and then Germany, Brazil, to help the country meet its obligations under the EU RED.119
India, the United Kingdom and Japan.106
In the United Kingdom, bio-power capacity grew 135  MW to

MARKET AND INDUSTRY TRENDS

In line with the provisions of the country’s 13th Five-Year Plan 8.0 GW.120 Generation rose 5.5% to 39.4 TWh, with increases in
(2016-2020), China’s bio-power capacity rose 26% to 22.5 GW large-scale pellet-fired generation, biogas and MSW plants.121
in 2020, up from 17.8 GW in 2019.107 Generation increased 23%
In Asia, Japan’s growth in bio-power capacity and generation grew
to more than 111  TWh.108 In 2020, 77 additional projects, with
slowly during 2020, with capacity rising 9% to 5.0 GW, and generation
a combined capacity of 1.7  GW, were approved for financial
increasing to 25 TWh.122 In the Republic of Korea, bio-power capacity
support in 20 provinces.109 They included projects using
rose 3% to 2.7 GW, with generation up 30% to 12.3 TWh, supported
municipal waste (1.2 GW), agroforestry raw materials (0.5 GW)
by the Renewable Energy Certificate Scheme and feed-in tariffs.123
and biogas power generation (21 megawatts, MW).110
In India, bio-power capacity increased marginally to 10.5 GW,
The United States had the second highest national bio-power and generation remained stable at 45 TWh.124
capacity and generation in 2020.111 The country’s 16 GW capacity
The use of internationally traded pellets produced from wood and
did not change significantly.112 Generation fell 2.5% to 62 TWh,
agricultural by-products for power generation continued to grow.
continuing the trend of recent years.113
In 2019, 18 million tonnes of pellets were used for power generation,
Brazil was the third largest producer of bioelectricity globally, up 7% from the previous year.125 Nearly three-quarters of the
with most of the country’s generation based on sugarcane pellets were used in the EU, particularly in the United Kingdom
bagasse.114 Brazil’s generation fell an estimated 10% to 50 TWh in (8.5  million  tonnes), Denmark (2.0  million  tonnes) and the
2020, as sugar production and the related electricity generation Netherlands, where use more than doubled to 0.8 million tonnes.126
was reduced.115 The rest were used in Japan (1.5 million tonnes) and the Republic
of Korea (0.9 million tonnes).127

FIGURE 20.
Global Bioelectricity Generation, by Region, 2010-2020

Terawatt-hours

600
6.3% Average annual
growth

500

400 Rest of World

South America

300
North America
Rest of Asia
China
200
EU-28

100

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: See endnote 105 for this section.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

BIOENERGY INDUSTRY pellets.139 The market also expanded in Japan and the Republic of
Korea, stimulated by favourable support schemes.140 By the end of
Solid Biomass Industry
2020, Japan’s Ministry of Economy, Trade and Industry had approved
The companies that make up the solid biomass industry range 70 projects with a capacity of nearly 8 GW under the feed-in tariff.141
from small, locally based entities that manufacture and supply
Debate continues regarding the carbon savings and other
smaller-scale heating appliances and their fuels, to major regional
environmental impacts related to pellet production from forestry
and global players involved in the supply and operations of large-
materials and their use in power generation.142 Starting in 2020, the
scale district heating and power generation technology.
sustainability provisions in the EU’s RED included solid biomass,
Most solid biomass projects rely on local feedstocks, such as setting tighter sustainability criteria; as of 2021, minimum greenhouse
wood residues and sugarcane bagasse, which can be used where gas reduction thresholds also were set for new projects seeking
they are produced. The growth in biomass pellet production to national support.143 Sustainability criteria are being put in place in
serve international markets for heat and electricity production Japan as well, which is expected to reduce the use of palm-based
is an important development in the sector, enabling countries products but increase the use of certified wood pellets.144
to scale up the use of bioenergy even when they have limited
national biomass resources. Liquid Biofuels Industry

In 2019, global production of biomass pellets reached an estimated The liquid biofuels industry produces ethanol, FAME biodiesel
59 million tonnes.128 Production data for China are uncertain but and increasingly HVO. Together, these comprise nearly all current
reached an estimated 20 million tonnes in 2018.129 Production in global biofuels production and use. In addition, the industry is
the rest of the world grew 9% to 39.4 million tonnes in 2019.130 The developing and commercialising new types of biofuels designed
EU remained the largest regional producer (17  million  tonnes), to serve new markets, notably for the aviation and marine
with production rising 5% that year.131 Production from other sectors. These offer improved results in terms of greenhouse
European countries rose 17% to over 4  million  tonnes, with gas footprints and other sustainability criteria. There is a growing
production in the Russian Federation up 21%.132 North American interest in the production of bio-materials and chemicals as part
of the shift to a broader bioeconomy.145 (p See Box 6.)
production increased 12% to 12.4  million tonnes.133
In 2020, the industry was negatively affected by the lower
Excluding China, 19  million  tonnes (5,326  PJ) of biomass
demand for transport fuels during the COVID-19 pandemic,
pellets were used worldwide to provide heat in the residential
which constrained production and reduced profitability. At the
and commercial sectors.134 Pellets also provided an estimated
height of the 2020 crisis, more than half of US ethanol industry
7.5% of the biomass used to heat buildings.135 Worldwide,
production capacity was idled.146 For example, ADM announced
18  million  tonnes (31  PJ) were used for power generation, CHP
that it would idle four of its plants for at least four months in mid-
production and other industrial purposes in 2019.136
2020.147 Global ethanol prices fell 28% between January 2020 and
The United States was the world’s largest exporter of wood April 2020, before recovering to within 5% of the January value
pellets in 2020.137 While US pellet production decreased 2% to by year’s end.148 In Brazil, ethanol demand was constrained and
9.3 million tonnes, exports rose 1% to 6.8 million tonnes.138 prices fell as much as 19% in 2020, with more sugar cane used for
The wood pellet market for power generation continued to grow sugar than for ethanol production.149
in the EU, where power producers can co-fire pellets with coal or By contrast, markets for FAME biodiesel were less affected by
convert coal plants, or build new plants that operate entirely on the pandemic. Although fossil diesel demand also fell, biodiesel

96
 03

BOX 6. Bioenergy and the Bioeconomy

While bioenergy can directly replace fossil fuel use for The growth of bioplastics is also a relevant trend. In 2020,
heating, transport and electricity generation, biomass-based these represented around 1% of the more than 368 million
materials also could play an expanded role in the move to a tonnes of plastic produced annually worldwide. Bioplastics
sustainable bioeconomy. This would lower greenhouse gas that are also biodegradable, such as polylactic acid (PLA),
emissions by reducing the use of fossil-based feedstocks for polyhydroxyalkanoates (PHA) and starch-based plastics,
materials such as plastics and by replacing energy-intensive account for 60% of global bioplastics production.
materials such as concrete and steel with wood- and Industrial investment and engagement in bioplastics
agricultural-based materials. production grew in 2020. Braskem (Brazil), the world’s

MARKET AND INDUSTRY TRENDS

Policy emphasis on recycling bio-based materials (within largest bioplastics producer, produced 200,000 tonnes of
a circular economy) has increased, as has industry interest polyethylene from ethanol that year. UPM (Finland) also
in developing a wider range of high-value-added products announced a EUR 550 million (USD 644 million) investment
based on sustainably produced biomass feedstocks. Policy in a German plant that will convert wood to bio-monoethylene
measures are being developed to promote the bioeconomy glycol (BioMEG) and monopropylene glycol (BioMPG),
intermediates used to produce plastics utilised as fibre and
concept. The EU has drafted an integrated bioeconomy
packaging material.
strategy, which it views as contributing to the European Green
Deal, and the US Renewable Chemicals Act, introduced in
2020, provides tax credits for bio-based chemical production. Source: See endnote 145 for this section.

levels were maintained due to higher incentives or increased In 2020, several companies
blending mandates in key producing countries, such as the that produce HVO fuels Production of
United States, Brazil and Indonesia.150 Biodiesel production in
Argentina was affected by import duties in the United States.151
announced that
capacity was available
new
HVO biodiesel
or planned. For example, rose sharply in 2020,
HVO production capacity rose sharply in 2020, driven by attractive
Phillips 66 (US) announced driven by attractive market
market incentives, particularly those provided by the US RFS2
plans to extend production incentives in the United
and California’s LCFS and under the EU’s RED.152 Many plans for
capacity at its UK States and Europe.
new capacity were announced.153 Total HVO production capacity
Humberside plant from
reached an estimated 9.2 billion litres (0.3 EJ) in 2020.154 When
57  million  litres to 460
taking into account both the expansion of existing facilities and
million litres per year and to
new production sites, the additional capacity under construction
convert the Rodeo facility
or being planned was estimated to reach more than 41 billion litres
at its San Francisco oil refinery to produce HVO and jet fuel.160
(equivalent to 1.1 EJ per year) at the end of 2020.155 With these new
The Rodeo facility would be one of the world’s largest such plants,
projects, total existing and planned HVO capacity is expected to
producing 4  billion  litres of the fuels from used cooking oils, fats,
exceed that of FAME biodiesel and to equate to around 60% of greases and soy oils starting in 2024.161
2020 ethanol production, underscoring a significant evolution of
biofuels in transport.156 Other oil majors are undertaking similar refinery conversions. Total
(France) announced plans in 2020 to convert its Grandpuits refinery
Most of the existing and planned capacity is based on treating in the Seine-et-Marne department of France to produce biojet
vegetable oils, animal fats and other by-products with hydrogen fuel, with an investment of EUR 500,000 (USD 0.6 million).162 This
to produce HVO/HEFA, which then can be refined to produce complements Total’s La Mède plant, which was converted in 2019 to
fuels with the same properties as fossil-based diesel, jet fuel and produce 570 million litres of HVO and biojet from palm oil and waste
other hydrocarbon products, including biopropane. When these fats and oils.163 ENI (Italy) converted its refineries in Venice and Sicily
feedstocks are wastes or by-products (such as used cooking oil, to make HVO and is more than doubling its capacity in Venice to
animal fats or tall oil), the greenhouse gas savings associated more than 1.6 billion litres.164 Marathon Oil (US) planned to convert
with their use are much higher than for virgin vegetable oils, its North Dakota plant to HVO by the end of 2020, with an annual
such as palm or canola oil.157 The fuels then qualify for higher production capacity of 700 billion litres, along with its Martinez
credits under biofuels support schemes. For example, under the refinery (California), which is expected to reach an HVO capacity of
California LCFS, HVO from used cooking oil qualifies for a credit some 3 billion litres by 2022.165 While most HVO projects are in the
up to twice that for HVO produced from soy oil.158 Under the EU United States and Europe, Pertamina (Indonesia) is developing two
RED, waste- and residue-based fuels are counted twice towards projects in Indonesia, which will produce a combined 1.5 billion litres
national targets and can earn double credits under national of HVO from palm oil under the country’s strategy to increase the
support schemes in member countries.159 share of biofuels in diesel to 40%.166

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 RENEWABLES 2021 GLOBAL STATUS REPORT

In addition to these projects, which hydrogenate oils and fats, GASEOUS BIOMASS INDUSTRY
several other technological approaches that use a wider range of
The gaseous biomass industry is involved mainly in producing
feedstocks are being demonstrated and commercialised. Projects
and using gas produced by the anaerobic digestion of biomass
designed to produce HVO and jet fuels by gasifying MSW or
feedstocks, which produces biogas, a mixture of methane, CO2
forestry residue feedstocks and synthesising the resulting gas
and other gases.181 The same process occurs in waste landfills, and
via the Fischer-Tropsch process are under development. Their
aggregate capacity is over 1 billion litres of fuel and includes the use the resulting landfill gas can be collected and used – providing
of feedstocks such as forestry and timber residues and processed energy while also reducing emissions from the landfill site. The
MSW, which is less expensive and thus produces cheaper fuel.167 gases can be used directly for heating or power generation.
Alternatively, the methane component can be separated and
The Red Rock Biofuels (US) project in Lakeview, Oregon (US)
compressed and used to replace fossil gas by injecting it into
will convert 166,000 dry tonnes of waste woody biomass into 60
gas pipelines or for transport purposes. Biomethane production
million litres of drop-in jet, diesel and petrol fuels to be supplied
totalled an estimated 1.4 EJ in 2018, or just over 1% of total global
under eight-year off-take agreements with FedEx and Southwest
fossil gas demand.182
Airlines.168 The project is based on gasification and Fischer-Tropsch
technology provided by Velocys (UK). Velocys has launched a Biogas can be used at a small scale in developing economies
project at Immingham (UK) in collaboration with British Airways as a sustainable fuel source for cooking, heating and electricity
PLC and Shell (Netherlands) to produce jet fuels from MSW production and to improve energy access. (p See Distributed
and is developing another in the US state of Mississippi that will Renewables chapter.) In developed economies, most biogas is
use paper and timber residues from local industries.169 In 2020, used for power generation or in CHP systems, often stimulated
Fulcrum Energy (US), which is developing two MSW projects in by favourable feed-in tariffs and other support mechanisms.183
the United States, began work to produce jet fuel from MSW in The energy content of biogas upgraded to biomethane and used
Japan, in collaboration with Japan Airlines Marubeni, JXTX Nippon for transport or injection into gas grids, primarily in the United
OIL and JGC Japan.170
States and Europe, rose to around 170 PJ in 2020.184 Stimulating
Three projects involving pyrolysis of wastes and other feedstocks this development are incentives that favour biomethane
were under way in Canada and in the Netherlands at year-end production over power production, notably under the US RFS2
2020.171 The Lieksa plant of Green Fuel Nordic Oy (Finland), with a and the California LCFS, which offer larger incentives than those
capacity of 24 million litres per year, also began supplying fuel oil for power or heat generation.185
(for heat) produced by the pyrolysis of wood residues.172
US biomethane production capacity rose sharply in 2020, with
Other approaches include the conversion of ethanol to fuels such as many new projects based on landfill gas, cattle waste, and other
biojet. In 2020, the FLITE consortium, led by SkyNRG (Netherlands)
wastes and residues. In total, 157  production facilities were
and Lanzatech (US), initiated a project in the Netherlands to build
in operation during the year (up 78% from 2019), with another
an ethanol-to-biojet facility to convert waste-based ethanol to
76  projects under construction and 79 projects in the planning
sustainable aviation fuel, producing more than 30,000 tonnes per
phase.186 The total operating production capacity in 2020 was
year.173 The project received EUR  20  million (USD  23  million) in
more than 60 PJ.187
grants from the EU’s Horizon 2020 programme.174
Only a small number of facilities producing ethanol from cellulosic
materials were operating successfully worldwide by the end of
2020.175 During the year, construction was under way at Clariant’s
(Switzerland) planned plant in Romania, and the company also has
licensed its technology for projects in Bulgaria and China.176
Despite the sharp drop in air travel and related fuel use in 2020,
the market for sustainable aviation fuels (SAF) – biofuels tailored
for use in aircraft engines – continued to expand, with seven fuel
pathways approved for use by year’s end.177 As of 2020, 45 airlines
had used SAF, and 7  airlines were actively investing in SAF
production capacity.178

Biomethane
Some 100  million  litres of
SAF was expected to be
available for use in 2021.179
The availability of these
production
fuels has increased at is rising, and accounts for
airports, with continuous around 1% of total global
supply established in fossil gas demand.
2020 at San Francisco
International Airport and
at London Luton Airport.180

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Recent projects illustrate that both specialist companies and The market continued to expand in China, where the national
energy majors are involved in the rapidly growing US biomethane energy plan prioritises the growth of biogas and biomethane.
sector.188 In August 2020, Republic Services and Aria Energy Construction was under way on two EnviTec Biogas projects:
(both US) announced a start-up project to process and purify one in Henan province, where the state-run PowerChina Group
landfill gas from the South Shelby (Tennessee) landfill site; BP will is the prime contractor, and the other operated by Shanxi Energy
then inject the gas into the interstate natural gas pipeline grid and & Traffic Investment in Qinxian province.197 Once completed, the
market it to renewable energy customers.189 In September 2020, Qinxian plant’s four digesters are expected to convert agricultural
Fortistar and Rumpke Waste and Recycling (both US) started waste such as corn stover into around 0.5 PJ of biogas per year,
building a landfill gas project in Shiloh, Ohio that will extract and which then will be upgraded into biomethane.198
capture waste methane and transform it into biomethane for
Growing demand from delivery companies for clean fuels is
distribution to natural gas vehicle fuelling stations.190
boosting the biomethane market. The UK supermarket company
In 2020, Aemetis (US) completed construction of two dairy

MARKET AND INDUSTRY TRENDS

ASDA ordered 202 biomethane-fuelled Volvo FH tractors in 2020
digesters and a pipeline to supply biomethane to provide and aims to convert all of its trucks from diesel to biomethane by
fuel for biomethane trucks and buses.191 Verbio (Germany) 2024, after in-house trials showed that biomethane reduced CO 2
announced the installation of an anaerobic digester at the former emissions more than 80%.199 Air Liquide (France) also will provide
DuPont cellulosic ethanol plant in Nevada, which will now use biomethane at six of its sites. 200
100,000  tonnes of corn stover annually to produce biomethane
with the energy equivalent of 80 million litres of petrol.192
BIOENERGY WITH CARBON CAPTURE AND STORAGE OR USE
Biogas and biomethane installations also have grown rapidly in
The capture and storage of carbon dioxide emitted when bioenergy
Europe, which in 2020 was home to at least 18,855 biogas plants
is used is a key feature of many low-carbon scenarios. 201 Removing
producing 176 TWh, as well as 726 biomethane plants with a total
from the atmosphere the CO2 that is produced during bioenergy
capacity of 64 PJ (an increase of 66 biomethane plants and 4 PJ
production, which is considered part of the carbon cycle, offers
compared to 2019).193 Recent projects include Gasum’s (Finland)
a dual benefit resulting in net negative emissions. 202 Although
construction of two new biogas plants in Sweden: a 120 gigawatt-
policy makers have shown increasing interest in such options,
hour (GWh) plant that will produce liquefied biogas from manure
strong policy drivers that might make such efforts economically
and food waste slurry from a local pretreatment plant, and a 70 GWh
attractive are lacking. Thus, very few projects demonstrating these
plant established alongside a local farmer co-operative that will use
technologies have operated at scale to date. 203
manure and other agricultural waste products.194 Weltec Biopower
(Germany), working with Agripower France, a local agroindustrial Additional pilot-scale carbon capture projects were conducted
firm, commissioned a EUR 11 million (USD 13 million) biomethane during 2020. Drax Power (UK) successfully demonstrated carbon
plant in Normandy, France that processes around 70,000  tonnes capture using a novel technology at its large-scale bio-power
of substrates to produce biogas, which is then refined into plant in the United Kingdom and has begun planning for large-
biomethane.195 The plant’s raw material mix, comprising inexpensive scale application. 204 In the United States, Power Tap is producing
waste and other byproducts from the agriculture and food industry, hydrogen for use as a transport fuel by reforming biomethane
is gathered from within a seven-kilometre radius.196 and capturing the CO2 that is released. 205

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GEOTHERMAL POWER AND HEAT

KEY FACTS GEOTHERMAL MARKETS
Geothermal resources are harnessed for energy
applications through two primary pathways (similar
  An estimated 0.1 GW of new geothermal
to solar- and bioenergy), either through the generation of
power generating capacity came online
electricity or through various “direct-use” thermal applications
in 2020 – significantly less than in recent (without conversion to electricity), such as space heating and
years – with just one country (Turkey) industrial heat inputi. Geothermal electricity generation was
representing the bulk of new installations. around 97 TWh in 2020, while direct useful thermal output was
about 128 TWh (462 PJ)ii.1 In some instances, geothermal plants
  Direct use of geothermal energy for
produce both electricity and heat for thermal applications
thermal applications continues to grow (co-generation), but this option depends on location-specific
around 8% annually, but the market thermal demand coinciding with the geothermal resource.
remains geographically concentrated, with
An estimated 0.1  GWiii of new geothermal power generating
only four countries (China, Turkey, Iceland
capacity came online in 2020, bringing the global total to around
and Japan) representing three-quarters of 14.1 GW. 2 The distinct feature of 2020 was the disproportionately
all direct geothermal use. small growth in capacity relative to recent years (attributable
in part to pandemic-related disruption), with almost all new
  The main focus continued to be on
facilities located in Turkey. Other countries that added minor
technological innovation, such as new
amounts of geothermal power capacity in 2020 were the United
resource recovery techniques and States and Japan. 3 (p See Figure 21.)
seismic risk mitigation, with the aim of
improving the economics, lowering the i The two pathways cross downstream when geothermal resources are used
development risk and strengthening for electricity generation, because a portion of the electricity is used for “in-
direct” thermal applications, such as cooling (air conditioning) and heating
prospects for expanded geothermal (via heat pumps or through electric resistance).
resource development. ii This does not include the renewable final energy output of ground-source
heat pumps. (p See Systems Integration chapter.)
iii Net additions were somewhat lower due to decommissioning or derating
of existing capacity.

FIGURE 21.
Geothermal Power Capacity and Additions, Top 10 Countries and Rest of World, 2020
Megawatts
3,000
+32
2,500

2,000
+99
Added in 2020
1,500
2019 total
+2
1,000

500

0
Rest of
es

ia

ey

ly

nd

n
ne

ny
ic

pa
an

Ita
s

World
at

rk

la
ne

ex

Ke
pi

al

Ja
St

Tu

e
M
do

ilip

Ze

Ic
d

In
te

Ph

ew
i
Un

Note: Figure shows known new capacity and capacity increases at existing facilities but does not indicate known capacity decommissioning or derating of
existing facilities, although those may be reflected (at least partially) in total capacity values.
Source: See endnote 3 for this section.

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The 10  countries with the largest stock of geothermal power refurbishment that included the replacement of all generating
capacity at the end of 2020 were the United States, Indonesia, the equipment as well as resource modifications.19 The upgrades
Philippines, Turkey, New Zealand, Mexico, Kenya, Italy, Iceland and are expected to increase the plant’s productivity and efficiency
Japan.4 In some instances, effective generating capacity (running while reducing maintenance costs per unit of output. 20 In
capacity) may be lower than indicated values, due to gradual November, the Puna geothermal power plant in Hawaii, which
degradation of the steam-generating capability of geothermal had been disabled by a volcanic eruption in 2018, resumed partial
fields or to insufficient drilling of make-upi wells to replenish steam operation. 21 Geothermal power in the United States generated as
flow over time. For example, the effective netii generation capacity much as 16.9 TWhiv in 2020, a notable increase of 9.4% over 2019,
in the United States was 2.6 GW at the end of 2020, whereas the representing around 0.4% of US net electricity generation. 22
gross nameplate generator capacity was 3.7 GW.5 In Japan, following the completion of two plants in 2019, some
Turkey’s geothermal capacity expansion in 2020 (net of any small additions saw light in 2020. The renovation of the Otake
deratings) was reported to be 99 MW, which was the country’s geothermal plant in Oita Prefecture improved efficiency and

MARKET AND INDUSTRY TRENDS

smallest annual increment since 2014 and less than half the raised its capacity by 2 MW to 14.5 MW. 23 The upgrade improved
mean annual additions for the preceding five years.6 However, stability and efficiency of operation by incorporating bi-level
new capacity installations reported during the year amounted to steam pressure to feed a single turbine. 24 Elsewhere, two 150 kW
around 128 MW, all in the last quarter.7 Five binary-cycleiii power low-temperature binary modules were installed: a bottoming-
plant commissions were announced for the month of October, cycle unit at an existing high-temperature geothermal plant
ranging from 3.5 MW to 26 MW. 8 to more fully use the available thermal energy, and a unit at a
Each of these plants, including the 20  MW Nezihe Beren traditional Japanese spa. 25
facility, qualified for Turkey’s highest national feed-in tariff for Indonesia, which ranks second to the United States for installed
geothermal installations due to local content manufacturing. 9 geothermal capacity, did not manage to complete any facilities
Following an identical addition in 2019, the Pamukören complex in 2020 due to pandemic-related delays to three projects that
added another 32  MW unit in December.10 Also, the Efeler previously were planned to come online that year.26 The delayed
complex was expanded at least 25 MW by the end of the year.11 projects, now expected online in 2021, are the 45 MW Sorik Marapi
All of Turkey’s new geothermal power plants are located in Unit 2 in North Sumatra (Unit 1 completed in 2019), the 90 MW
Western Anatolia (along with all existing capacity), with most Rantau Dadap and the 5  MW Sokoria Unit 1. 27 In all, Indonesia
concentrated in an area extending less than 100 kilometres.12 aimed to complete nearly 200 MW of geothermal power capacity
In 2020, Turkey still ranked fourth globally for total geothermal in 2021. 28 A potential danger associated with geothermal energy
power capacity, with 1.6  GW.13 Geothermal power supplies exploration and extraction is the uncontrolled or excessive release
around 3% of the country’s electricity.14 of noxious gases. During preparations for commissioning of the
The technology-specific feed-in tariff (FIT) in place since 2011 has Sorik Marapi Unit 2 in early 2021, procedural failures led to the
been instrumental in Turkey’s geothermal energy development.15 release of hydrogen sulphide gas in concentrations that caused
Revisions to the FIT were anticipated throughout 2020, possibly multiple injuries and five deaths among nearby residents. 29
causing some projects to be rushed to completion before
the scheduled expiration of the FIT at year’s end (but this was
extended to mid-2021 on account of the pandemic).16 A new FIT
introduced in early 2021, around one-third lower than the existing
tariff, abandoned the USD-based structure for the local currency,
for both the basic tariff and the local content increment.17
The United States holds an enduring global lead in installed
geothermal power capacity despite being a relatively stagnant
market in recent years. Minor changes in 2020 raised the
country’s net geothermal capacity by around 32 MW, bringing
total net operating capacity to 2.6 GW.18 After more than 30 years
of operation, the Steamboat Hills power plant in Nevada
saw its capacity rise by around 19  MW (to 84  MW) following

i If a geothermal power plant extracts heat and steam from the reservoir at a rate that exceeds the rate of replenishment across all its boreholes, additional wells
may be drilled over time to tap additional steam flow, provided that the geothermal field overall is capable of supporting additional steam flow.
ii In general, a power plant’s net capacity equals gross capacity less the plant’s own power requirements and any seasonal derating. In the case of geothermal
plants, net capacity also would reflect the effective power capability of the plant as determined by the current steam production of the geothermal field. See
endnote 5 for this section.
iii In a binary-cycle plant, the geothermal fluid heats and vaporises a separate working fluid (with a lower boiling point than water) that drives a turbine to generate
electricity. Each fluid cycle is closed, and the geothermal fluid is re-injected into the heat reservoir. The binary cycle allows an effective and efficient extraction of
heat for power generation from relatively low-temperature geothermal fluids. Organic Rankine Cycle (ORC) binary geothermal plants use an organic working fluid,
and the Kalina Cycle uses a non-organic working fluid. In conventional geothermal power plants, geothermal steam is used directly to drive the turbine.
iv Based on net generation of 15.5 TWh in 2019, revised from 16 TWh as reported in early 2020. Likewise, generation for 2018 was first reported as 16.7 TWh but
later revised to 16 TWh. The implied growth of 9.4% may be found to be smaller, if 2020 generation figures are later revised downward, as was the case for the
preceding two years. See endnote 22 for this section.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

Along with Turkey, Indonesia has been a relatively strong and New Zealand’s geothermal electricity sector has been relatively
consistent market with around 700 MW added since 2015 and a inactive over the last five years, following a period of rapid growth
total installed capacity of 2.1 GW. 30 Geothermal power supplied in the use of geothermal energy in the prior decade.42 While the
14.1  TWh of electricity to Indonesia in 2019, or 4.8% of the country has not added any capacity since 2018, geothermal
country’s total generation that year. 31 power has remained at nearly 18% of the generation mix since
As part of an effort to more than double the renewable share of 2015, in large part because the country has seen no growth in
Indonesia’s electricity supply to 23% by 2025, the government electricity demand during the last decade.43
committed to absorbing some of the early exploration risk by Demand growth was expected to be dampened further in 2021
taking over exploratory drilling from private developers going by the proposed closing of an aluminium smelter.44 However, the
forward. 32 The objective is to accelerate progress towards long- successful appraisal of a new geothermal field confirmed the
term geothermal energy targets by improving geothermal data viability of the proposed 152  MW Tauhara plant, to be built by
before again auctioning off development areas to developers, 2023 near Taupō on the North Island.45 The developer considers
starting in 2023. 33 Combined with new reimbursements for the field to be especially attractive because its associated CO 2
exploration activities, the government expects these changes emissions are just one-eighteenth those of a coal-fired unit.46
to reduce the risk premium on new projects, leading to lower By early 2021, New Zealand’s 32  MW Ngawha plant was
electricity rates for consumers. 34 Exploratory drilling was planned commissioned after three years of construction.47
for three areas in 2021 but later reduced to two due to budget
Worldwide, the capacity for geothermal direct usei – direct
constraints. 35 Indonesia’s geothermal resources are located
extraction of geothermal energy for thermal applications –
mainly in mountainous conservation areas and far from load
increased by an estimated 2.4 gigawatts-thermal (GWth) (around
centres, further complicating development. 36
8%) in 2020, to an estimated 32 GWth .48 Geothermal energy use
With no capacity added since 2018, the Philippines still ranks for thermal applications grew an estimated 11.3 TWh during the
third for total installed capacity, at 1.9 GW, although dependable year to an estimated 128 TWh (462 PJ).49
capacity is reported to be somewhat less (1.8  GW). 37 To spur
Geothermal heat has varied direct applications. Bathing and
investment in geothermal power, the government moved
swimming remains the largest category, comprising around 44%
in 2020 to allow full foreign ownership in renewable energy
of total use in 2019 (latest available consolidated data), and it is
projects. 38 Nonetheless, with five prospective geothermal areas
growing around 9% annually on average.50 Second, but with the
up for auction until early 2021, no foreign firms had placed bids
fastest growth, was space heating (around 39% of direct use),
by the end of 2020. 39 The local geothermal industry awaits the
expanding around 13% annually on average.51 The remaining
implementation of a risk mitigation fund by the government
to ameliorate the risk of pursuing the mostly low-enthalpy 17% of direct use was allocated to greenhouse heating (8.5%),
resources that are up for exploration.40 New discoveries of industrial applications (3.9%), aquaculture (3.2%), agricultural
high-enthalpy resources in the country are considered unlikely, drying (0.8%), snow melting (0.6%) and other uses (0.5%). 52
and for existing known resources, mountainous terrain adds to The top countries for geothermal direct use (in descending order)
project costs, while permitting is complicated by laws protecting in 2020 were China, Turkey, Iceland and Japan, which together
ecologically sensitive areas and rural populations.41 represented roughly 75% of the global total. 53 (p See Figure 22.)

Geothermal
direct use
capacity
increased by around 8%
in 2020, to an estimated
32 GWth.

i Direct use refers here to deep geothermal resources, irrespective of scale, that use geothermal fluid directly (i.e., direct use) or by direct transfer via heat exchangers.
It does not include the use of shallow geothermal resources, specifically ground-source heat pumps. (p See Heat Pumps section in Systems Integration chapter.)

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 03

FIGURE 22.
Geothermal Direct Use, Estimates for Top 10 Countries and Rest of World, 2020

Terawatt-hours
75

50

MARKET AND INDUSTRY TRENDS

25

0
Rest of
ra n
na

il
ry
an

d
ey

ly

es
n
de sia

az
n
n

Ita
ga

World
tio
i

rk

at
p

la
la
Ch

Br
Fe us
Ja

St
Tu

un
e

Ze
Ic

R
H

d
te
ew

i
Un
N

Source: See endnote 53 for this section.

China is both the largest user of geothermal heat (47% of the development. 61 The remaining countries that rely on geothermal
total) and the fastest growing market, with its installed capacity heat, each representing less than 3% of direct use, include
growing more than 18% annually on average during 2015 through (in descending order) New Zealand, Hungary, the Russian
2019, and consumption growing more than 21% annually on Federation, Italy, the United States and Brazil. 62
average. 54 That period of growth coincides with the government’s Some of the most active markets for direct use do not have
first geothermal industry plan, issued in 2017, for rapid expansion access to high-enthalpy resources and often endure higher costs
of geothermal energy use, especially for heat applications. 55 and greater technical challenges to access geothermal heat.
As of 2019, China had an estimated 14.2 TWth of installed Several examples are found in continental Europe where low-to-
geothermal capacity for direct use (excluding heat pumps), with medium enthalpy resources are used mainly for district heating
7 TWth allocated to district heating, 5.7 TWth serving bathing and and greenhouse cultivation. This market remained active in 2020
swimming applications, and the rest used for food production with notable new development in France, Germany and the
and other industry. 56 Most of China’s hydrothermal resources are Netherlands.
relatively low enthalpy; of the 546 production wells drilled during In Germany, Munich completed drilling in 2020 for what will be
the period 2015 through 2019, 94% had a wellhead temperature the country’s largest geothermal plant, exceeding 50 megawatts-
below 100°C. 57 thermal (MWth) and expected to provide heat for more than 80,000
Other top countries (Turkey, Iceland and Japan) have city residents.63 By use of absorption chillers, the plant also will
experienced more moderate capacity growth of around 3-4% contribute to the city centre’s district cooling network, which was
annually (consumption growth of 3-5%). 58 In Turkey, geothermal undergoing expansion during the year.64 In addition, plans were
development is devoted mainly to electricity generation, while under way for what would be the seventh geothermal facility
investment in direct use has contracted somewhat over the serving the municipality since the first plant came online in 2004.65
last decade. 59 Iceland has significant thermal demand served France continues to see growing use of localised geothermal
by district heat networks and continues limited drilling of resources, mostly for district heating. In the greater Paris region,
reinjection and make-up wells for those systems as well as several geothermal district heating systems have been developed
for existing power plants. 60 In Japan, more than 80% of direct in recent years, with new projects started or announced in 2020.
use is believed to be associated with bathing facilities located In August, drilling commenced in Vélizy-Villacoublay, southwest of
near geothermal springs, but due to limited data gathering, central Paris, on a system that is expected to meet 66% of the energy
information is lacking on immediate prospects for further demand of the local district heat network, serving the equivalent

103
 RENEWABLES 2021 GLOBAL STATUS REPORT

of 12,000  dwellings; the GEOTHERMAL INDUSTRY

project was aiming for
completion in 2021.66
Technology In a year of project delays as well as both meagre and highly

In the eastern suburbs of innovations concentrated market growth, the geothermal industry found
promise in the pursuit of new technology. Technological
Paris, the communities of promise expanding project innovation, such as new resource recovery techniques and
Champs-sur-Marne and viability and are attracting seismic risk mitigation, continued to be the industry’s main focus
Noisiel advanced work investment from the oil towards achieving improved economics, lower development risk
on the construction of and overall better prospects for expanded geothermal resource
and gas majors.
a joint heating network development around the world. However, industry hopes to
following a drilling phase. expand development beyond the relatively few and concentrated
Expected for completion centres of existing activity remained largely unfulfilled, as in years
in late 2021, the geothermal district heating project will supply heat
past. While high costs and project risks continue to create a
to the equivalent of 10,000 homes across the two municipalities;
drag on investment in most places, especially in the absence of
the renewable energy component of the supply is expected to be
government support (i.e., feed-in tariffs and risk mitigation funds),
82%.67 For another project in the nearby communities of Drancy
certain pockets of industry innovation attracted new investment
and Bobigny, four wells were drilled in 2020 and distribution of
from established entities in the energy industry.
geothermal heat began in early 2021.68 The project is expected
to supply the equivalent of 20,000  homes when completed, In some markets, the real or perceived risk of induced seismic
displacing 60% of the fossil fuels currently used on the network.69 activity related to geothermal development appears to
present a specific risk to individual geothermal developers,
A once-promising geothermal project in the Alsace region of
if not a systemic risk to the industry (as evidenced by recent
France came to an apparent end in late 2020, and its fate could
events in France and the Netherlands). Beyond the projects
have repercussions for geothermal development in the area going
directly affected, collateral damage has emerged in the form
forward.70 After a series of earthquakes over the course of a year,
of cancellations of other nearby projects (i.e., Alsace) and of
attributed to geothermal drilling and associated well stimulation
shaken public confidence. 80 The prevalence of such events has
on the northern outskirts of Strasbourg, local authorities ordered
grown with the increased application of hydraulic fracturing
the final shutdown of the Vendenheim facility in December, along
with three other permitted projects in the area.71 Local authorities (well stimulation), as was used in the Vendenheim project in
claimed that the operator had exceeded permitted well pressures Strasbourg. Before that, earthquakes associated with such
for stimulation as well as the authorised well-drilling depth, enhanced geothermal systems (EGS)i in Switzerland (Basel in
reaching beyond the sandstone strata into the deeper bedrock, 2006 and St. Gallen in 2013) caused severe setbacks for Swiss
which increased the risk of seismic activity.72 geothermal prospects. 81 Yet a solution is needed if geothermal
energy use is to expand significantly beyond the relatively few
Problems associated with induced seismic activity also affected
locations in the world that enjoy the most valuable, medium-to-
projects in the Netherlands. A Dutch geothermal greenhouse
high enthalpy geothermal resources. 82
operation was declared bankrupt in 2020 after two years of
inactivity following seismic disturbances in 2018.73 Although the Driven by the early setbacks and the need to rekindle local
operator claimed that the earthquakes near the project were geothermal development, Swiss researchers continue to pursue
unrelated, Dutch regulators declared continued operations too technological and procedural solutions to the problem of
risky.74 The operator observed that unlike other Dutch geothermal induced seismic activity. In late 2020, Geo-Energie Suisse AG
projects that tap only the porous sandstone layer, the drilling in (GES) proved the concept of forming a sufficiently permeable
this case penetrated deep bedrock in the search for greater “heat exchanger” reservoir at a depth of 4-5 kilometres through
hydrothermal flow.75 a process of multi-stage (incremental steps) stimulation that
In the Netherlands, geothermal energy output grew 10% in minimises the probability of induced seismic events. 83 Further
2020 (following 51% growth in 2019), to 6.2  PJ, driven mostly validation of the technology will be conducted at the US test site
by drilling activity in the preceding year.76 The country’s use of FORGEii in Utah. GES anticipates that these findings will improve
geothermal energy is generally limited to greenhouse horticulture, government confidence in a currently suspended geothermal
but expansion into district heating and industrial applications is pilot project for the technology in the canton of Jura. 84
anticipated, pending the construction of heat networks but also Across Germany, the Netherlands and Italy, industry actors
the need to overcome political, financial and social barriers to uses and research institutions worked to draw attention to the
beyond horticulture.77 Multiple drilling operations were under way potential of geothermal energy to aid in the renewable energy
or completed in 2020.78 transition (particularly to meet thermal energy demand) and to
As Dutch mining laws and regulations pertaining to geothermal highlight the need for additional support policies. In Germany,
exploration and development were being reviewed in 2020, the geothermal industry and research institutions came together
country’s geothermal industry raised concerns about regulatory under the banner of “Heat transition through geothermal energy”
uncertainty and any associated project delays.79 (Wärmewende durch Geothermie). 85 The Dutch geothermal

i EGS encompasses the use of hydraulic fracturing of hot rock to create the conditions for a geothermal reservoir. Specifically, the objective is to attain a combination
of heat, permeability and flow of geothermal fluid that is sufficient to make extraction economical for heat and/or electricity generation.
ii Frontier Observatory for Research in Geothermal Energy.

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MARKET AND INDUSTRY TRENDS

industry also indicated that the sector will be critical to the local geothermal conditions and thus to improve viability of the site.92
pending heat transition in the Netherlands, while drawing Eavor’s technology, first demonstrated in Alberta (Canada) in early
attention to the alleged lack of financial incentives and to the 2020, uses directional drilling techniques developed in the oil and
perceived un-level playing field, relative to other technologies. 86 gas industry to create a closed-loop system that circulates a working
The Italian Geothermal Union similarly claimed that ineffective fluid to extract heat from bedrock without bringing geothermal fluid
incentives and national legislation had severely slowed Italy’s (brine) to the surface. In addition to eliminating surface emissions
geothermal development and jeopardised industrial know-how. 87 of CO2 and hydrogen sulphide, the thermosiphon effect (bringing
hot fluid up on one side as cold fluid descends on the other) of the
The persistent but variable emissions of CO2 and hydrogen
closed-loop design reportedly mitigates the energy demand from
sulphide from open-loop geothermal facilities remain a concern.
pumping that is associated with other geothermal techniques.93
In most instances, CO2 emissions are far below those from
fossil fuel facilities, but they are non-negligible nonetheless, Such innovations have gained the attention of the oil and
and sometimes geothermal plant emissions can rival those of gas majors. In early 2021, Eavor Technologies completed a
coal-fired power plants. 88 Significant progress has been made USD  40  million funding round including investments from BP
in recent years to advance the process of sequestering CO2 . Ventures and Chevron Technology Ventures, among others. 94
The Icelandic company Carbfix, with its international partners, Chevron also announced investment in Baseload Capital A.B.
has developed a process to permanently capture and store (Sweden), whose projects include the deployment of modular
CO2 by imitating and accelerating the natural process through “heat power” units by Climeon (Sweden) for low-temperature
which dissolved CO2 reacts with sub-surface rock formations to electricity generation from geothermal or other sources of excess
form stable carbonate minerals. 89 In 2020, an agreement was heat (including both of the units installed in Japan in 2020). 95
reached to build a CO 2 sequestration plant in Iceland capable of
The industrial entities that provide the technology for geothermal
removing 4,000 tonnes of atmospheric CO 2 per year, combining
energy capture and conversion (excluding drilling) comprise a
the Carbfix method with the direct air capture technology for
relatively small group. The power unit (turbine) manufacturers
CO 2 removal provided by Climeworks of Switzerland. 90
include Atlas Copco (Sweden), Exergy (Italy, subsidiary of Tica
When resource exploration disappoints and precludes conventional Group of China since 2019), Fuji Electric (Japan), Mitsubishi and
hydrothermal projects, new technologies may help. For example, in its subsidiary Turboden (Japan/Italy), Ormat (US) and Toshiba
Gertetsried, Germany, a developer drilled two wells, starting in 2013 (Japan). 96 In some key markets, such as Turkey, the suppliers of
(the first being the deepest geothermal well in Europe to date, at over binary-cycle technology are prominent (for example, Atlas Copco,
6,000 metres), that proved unable to produce enough hydrothermal Exergy and Ormat), while other suppliers specialise in more
flow to make a conventional geothermal power project viable.91 conventional flash turbines (for example, Toshiba and Fuji). 97
Eavor Technologies (Canada) joined the project in 2020 to deploy Ormat Technologies and Exergy supplied most of the binary-
its new modular closed-loop technology, which is well suited for the cycle plants that were completed during the year. 98

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 RENEWABLES 2021 GLOBAL STATUS REPORT

HYDROPOWER
KEY FACTS HYDROPOWER MARKETS
Despite a 24% increase in capacity additions, driven
mainly by Chinai, the global hydropower market did
  The global hydropower market
not recover in 2020 following several years of deceleration.1
expanded in 2020 but did not recover
The effects of the COVID-19 pandemic were notable, with
from several years of deceleration. the market slowing as construction was halted temporarily,
  China added 12.6 GW of hydropower component supply chains were disrupted, and energy demand
fell. 2 Capacity additions for the year totalled an estimated
capacity in 2020, its largest addition of
19.4 GW, bringing the total installed capacity to 1,170 GWii. 3 The
the previous five years, and regained the
top 10 countries for total capacity did not change and were, in
lead from Brazil in commissioning new order of installed capacity: China, Brazil, Canada, the United
hydropower capacity. States, the Russian Federation, India, Norway, Turkey, Japan
and France, together representing more than two-thirds of the
  Hydropower faced challenges including
global total.4 (p See Figure 23 and Reference Table 2 in GSR
operational and technical factors, 2021 Data Pack.)
environmental and social acceptability,
China regained the lead from Brazil in commissioning new
a global decline in wholesale electricity
hydropower capacity (both large and small installations),
prices, and adverse climate impacts on
followed by Turkey, India, Angola and the Russian Federation.5
hydropower production and infrastructure.
(p See Figure 24.) As large and economically viable hydrological

i China’s share represented 65% of global total capacity additions; if China is

excluded, worldwide installed capacity decreased 44% between 2019 and 2020.
ii Where possible, all capacity numbers exclude pure pumped storage
capacity unless otherwise specified. Pure pumped storage plants are not
energy sources but rather means of energy storage. As such, they involve
conversion losses and are powered by renewable and/or non-renewable
electricity. Pumped storage plays an important role in balancing grid power
and in the integration of variable renewable energy resources.

FIGURE 23.
Hydropower Global Capacity, Shares of Top 10 Countries and Rest of World, 2020

29% 9%
Brazil
China

7% Next
Canada 6 countries

7% Russian Federation 4%
United States
31% India 4%
Rest of World 17% Norway 3%
Turkey 3%
Japan 2%
France 2%

Source: See endnote 4 for this section.

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 03

resources become more limited, markets increasingly have scheduled for 2021.13
developed the remaining untapped potential that is available China’s total hydropower China added 12.6 GW of
mainly from marginal resources and pumped storage.6
Global pumped storage capacity (which is counted separately
output reached 1,360 TWh,
up 4.1% from 2019 and
hydropower
from hydropower capacity) increased 1.5  GW  (0.9%) in 2020, representing 18% of the
country’s electricity supply;
capacity
primarily from new installations in China and Israel.7 in 2020, its highest amount
meanwhile, the Three
Global hydropower generation increased 1.5% in 2020 to reach Gorges Dam set a new in the previous five years.
an estimated 4,370  TWh, representing around 16.8% of the world record for annual
world’s total electricity generation. 8 While some yearly variations electricity output in 2020.14
in global hydropower generation are due to changes in installed
capacity, most are the result of fluctuations in weather patterns

MARKET AND INDUSTRY TRENDS

and in local operating conditionsi.
China added 12.6  GW of hydropower capacity in 2020, its
highest amount in the previous five years, reaching 338.7  GW
by year’s end. 9 The country’s capacity increased 15% during
the 2015-2020 period, and new hydropower plants represented
7% of China’s total newly installed power generation capacity
in 2020.10 The largest additions included the 1.6  GW Datengxia
plant in the Guangxi Zhuang autonomous region, with eight
200 MW turbines, and the five 850 MW units commissioned at
the Wudongde plant between Yunnan and Sichuan provinces.11
Wudongde will be the seventh largest plant in the world upon
completion, with 10.2 GW of total installed capacity.12
Other hydropower projects in China included the completed
reconstruction of the 1.5  GW Fengman plant and the ongoing
construction of the 16 GW Baihetan mega project, with commissioning

i Fluctuations in weather patterns lead to modifications in hydrological conditions. Hydropower operations may vary due to price fluctuations in electricity mar-
kets, the contribution to grid stability through balancing services using storage capacities (reservoirs) and water supply management.

FIGURE 24.
Hydropower Capacity and Additions, Top 10 Countries for Capacity Added, 2020

Gigawatts

350 +12.6

300 50 +0.4
+0.5
250
Added in 2020
40

200 +2.5 +0.3 2019 total

30

150
+0.2 20
100
+0.3
10
50 +0.2
+0.4
+0.2
0
China Canada Brazil Turkey India Angola Russian Norway Indonesia Guinea
Federation

Source: See endnote 5 for this section.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

Turkey added 2.5 GW of new hydropower capacity – its largest project, commissioned in 2019, began commercial operations,
increase since 2013 – for a total of 30.9 GW.15 The fast pace of and commissioning was completed on the first unit of the 70 MW
commissioning was driven in part by the pending expiration of Xelalong 1 plant. 28 In Vietnam, 119.5  MW of hydropower was
the country’s feed-in tariff scheme, applying to facilities brought added in 2020, bringing the total installed capacity to 17.1 GW.29
online before the end of the year.16 By early 2021, a new FIT was The commissioning of the 220 MW Thuong Kon Tum hydropower
announced for 2021-2025 that reduced the hydropower tariff by plant and the expansion of the 1,920 MW Hoa Binh plant, both
around one-third.17 The largest hydropower facilities that went expected by the end of the year, were postponed to 2021. 30
online in 2020 were the 540  MW Yusufeli dam, the 500  MW In Uzbekistan, several facilities were finalised with modernisation
Lower Kaleköy plant, the 420  MW Çetin plant and the 1.2  GW of the 15  MW Kadyrinskaya 3 plant, two power plants totalling
Ilisu dam (the second largest dam in the country, located on the 22.4 MW on the South Ferghana Canal and a 15 MW plant on
Tigris River, which began production after some delays).18 the Bozsu Canal. 31 In Georgia, the Shuakhevi installation on the
The intense drought in the Black Sea region in 2020 reduced Adjaristsqali River, the country’s largest hydropower plant built
Turkey’s hydropower production 12% compared to 2019.19 since 1978ii, began commercial operations, adding 178  MW to
Hydropower represented nearly one-third of the country’s power the grid; the facility is one of two plants in a 187 MW scheme. 32
capacity mix by the end of 2020 and around 56% of the new Georgia ended 2020 with a total installed capacity of 3.4  GW,
power generating capacity added that year. 20 representing around 80% of the country’s power generating
capacity and 76% of its electricity production. 33
India added 473 MW of net hydropower, for a total capacity
The European hydropower market has reached near-maturity,
of 45.8  GW. 21 The government has promoted hydropower as
and possibilities for new, large installations are limited. Norway
a source of grid stability and flexibility, with a target of 70  GW
added 324 MW of capacity – with nearly half of this consisting of
of installed capacity by 2030. 22 Around 13  GW of capacity was
plants of less than 10 MW – in addition to several larger facilities,
under construction in 2020. 23 After eight years of delays following
including a 77 MW plant. 34 The country’s total installed capacity
protests related to safety concerns and other potential negative
reached 32 GW in 2020, representing 89% of national electricity
impacts, construction resumed on the 2  GW Subansiri project
production. 35 In France, the 97 MW Romanche-Gavet plant was
along the Assam-Arunachal Pradesh border. 24 In mid-2020, the
commissioned after a decade of construction, replacing six power
government proposed a draft Electricity (Amendment) Bill to
plants and five dams built around 1910. 36 To reduce the facility’s
boost India’s renewables sector. 25 The bill includes provisions
visual impact, the developers located the plant underground and
that define a minimum percentage of electricity that public sector
replaced the previous structures with a single dam; in addition,
companiesi must purchase from hydropower sources, in addition
local species were replanted along the dam banks for ecological
to introducing a purchase obligation and providing incentives. 26
restoration. 37 In Albania, which relies entirely on hydropower
Indonesia added 240  MW in 2020 for a total installed capacity generation and electricity imports, the 197  MW Moglicë plant
of 6.1 GW, and Lao People’s Democratic Republic (PDR) added – the second of two plants that are part of the 269 MW Devoll
180  MW to reach nearly 7.4  GW. 27 The 260  MW Don Sahong Hydropower Scheme – started delivering electricity. 38

The Indian government

has promoted hydropower
as a source of

grid stability
and flexibility.

i The public sector companies subject to renewable power purchase obligations are power distribution companies, energy producers and certain consumers.
ii The 1,300 MW Engurhesi hydropower plant was completed in 1978, and the 130 MW Zhinvalhesi plant was completed in 1986.

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 03

Installed capacity in the Russian Federation reached 48.5  GW Brazil, Canada and the United States, the largest hydropower
after 380  MW was added in 2020. 39 The largest project to markets in the Americas, together added nearly 0.5 GW of capacity
come online was the 346  MW Zaramagskaya plant in North in 2020.60 In Canada, the two large projects expected during the year
Caucasus.40 New small hydropower plants in the region also were delayed largely because of the pandemic. The commissioning
added more than 22 MW of capacity across four facilities.41 The of the 695  MW Keeyask generation project near Hudson’s Bay
sixth of seven units was commissioned at the Ust-Khantayskaya (owned by Manitoba Hydro and four Indigenous groupsii) was
facility under renovation in the Krasnoyarsk region, where 63 MW
pushed to 2021 after Indigenous groups erected blockades,
units are being replaced with 73 MW units to increase the installed
preventing workers from entering when activities resumed.61 In the
capacity to 511 MW.42
province of Newfoundland and Labrador, the first 206  MW unit
Several projects were completed in Africa, including in Angola, at the 824  MW Muskrat Falls facility on the Churchill River came
Ghana and Guinea. Angola continues to focus its long-term online in late 2020, and commissioning began on the second unit.62
electrification strategy on hydropower, with more than 4  GW

MARKET AND INDUSTRY TRENDS

By year’s end, Canada had around 82 GW of hydropower capacity,
planned or under study.43 To achieve this, generation facilities are
providing around 60% of the country’s electricity supply.63
being developed, upgraded or restored.44 Angola added 401 MW
of hydropower capacity in 2020, bringing the sixth (and final) The United States commissioned 148  MW of capacity in 2020,
unit of the Laúca plant into commercial operation to reach an primarily following the replacement of turbines and generators
installed plant capacity of 2.1 GW.45 By year’s end, Angola’s total at the 122 MW Wanapum Dam, as well as a 3 MW expansion at
installed capacity was 3.8 GW.46 Shoshone Falls.64 Two new installations totalling less than 30 MW
In Malawi, the Phalombe 3  MW plant reached its final phase were added, and a 6 MW facility was retired.65 This resulted in a
before commissioning, and the last two units at the 8.2  MW slight increase in the US total installed capacity, to 79.9 GW.66 After
Ruo-Ndiza hydroelectric power station were commissioned.47 In a three-year decline, generation rose to 291  TWh, representing
Rwanda, four installations came online in 2020: three of these 7.2% of the country’s total electricity supply.67
totalled slightly more than 2 MW, while the 9.8 MW Giciye III came
In Latin America, the 104 MW Patuca III plant, the second largest
online after 18 months of construction.48 Rwanda’s total installed
hydropower plant in Honduras and the country’s first project
capacity reached 121 MW by year’s end.49 In Uganda, the Bukinda
financed by China, went into operation, increasing Honduras’
6.6  MW facility was commissioned, and the 600  MW Karuma
total installed capacity to around 0.8 GW.68 In Colombia, installed
project along the Nile River in the western region was nearing
capacity increased slightly from the previous year, with 24 MW
completion after years of delays as well as recent pandemic-
related challenges. 50 Once commissioned, the Karuma plant of additions and a total capacity of 11.9  GW by year's end.69
will increase Uganda’s total hydropower capacity to more than Preparations also began at the 2.4 GW Hidroituango project to
1.5 GW and will provide power to neighbouring Rwanda, northern install the first two turbines after a 2018 accident that flooded and
Tanzania, Kenya and the Democratic Republic of the Congo damaged the powerhouse, displacing around 600 residents and
through new regional transmission lines. 51 destroying infrastructure along the Cauca River.70

In Ethiopia, the more than 6 GW Grand Ethiopian Renaissance

Dam moved towards completion, despite a lack of agreement
with Egypt and Sudan on filling and operating the dam. 52 The
Ethiopian government considers this facility fundamental to the
country’s economic development, as half of the population lacks
access to the grid, and electricity supply blackouts are frequent. 53
In line with this economic objective, the launch of commercial
operations at the 254 MW Genale Dawa 3 hydropower project
increased Ethiopia’s overall power capacity around 6%.54 The
country’s year-end hydropower installed capacity was 4.1 GW. 55
In Guinea, 225  MW came online after the commissioning of
two units of the Souapiti dam, bringing the country's total
installed capacity to 0.7 GW. 56 Ghana finalised the retrofit of the
160 MW Kpong facility, one of three large hydropower facilities
in the country, for a total installed capacity of 1.6  GW.57 Ghana’s
first small-scale plant, the Tsatsadu micro-hydro project,
funded primarily by the Bui Power Authority and by contributions
from development funds, also was fully commissioned. 58 The
Ghanaian Parliament authorised construction of the 60  MW
Pwalugu multi-purpose dam projecti on the Volta River. 59

i The dam will store water to generate electricity from hydropower, irrigate agricultural fields downstream and provide a flood protection system for populations
living in the White Volta basin.
ii The Indigenous peoples who own part of the project include the Tataskweyak Cree Nation, War Lake First Nation, York Factory First Nation and Fox Lake Cree Nation.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

Brazil, after nearly a decade of adding capacity in the gigawatt In Portugal, the 880 MW Gouvãesii pumped storage facility was
range, commissioned only 213  MW in 2020, mainly divided on track for commissioning in 2021, and construction also began
among small-scale facilities of 11  MW or less.71 This sharp on one of Vietnam’s first pumped storage projects, the 1.2 GW
contraction from the previous year was due to rising Bac Ai project. 88 The 250  MW Hatta pumped storage facility
environmental concerns associated with the country’s remaining in the United Arab Emirates also progressed, with the service
exploitable hydropower potential.72 By the end of 2020, Brazil tunnels completed and construction of the upper dam under
had 109  GW of hydropower capacity, representing 62% of way. 89 In China, the 3.6 GW Fengning project began storing water
its total operational power capacity.73 in its lower reservoir; upon completion, the facility is expected to
be the world’s largest pumped storage installed capacity, with a
Brazil’s ageing hydropower fleeti has negatively affected the
record 12 reversible 300 MW turbinesiii. 90
reliability of the country’s electricity supply, causing frequent
service disruptions.74 In 2017, outages at hydropower plants
HYDROPOWER INDUSTRY
reduced total electricity production by 65  TWh, which is the
equivalent of 67% of the overall energy losses in Brazil’s electrical The hydropower industry continued to face challenges and
transmission and distribution system.75 One study estimated opportunities in 2020, augmented by the pandemic-induced
that rehabilitating the seven hydropower plants that were least recessioniv as well as by new opportunities stemming from the
available that year due to forced outages would provide an growing recognition of renewables as a valuable component of
additional 1.9% of overall hydropower energy.76 a sustainable economic recovery v. 91 The challenges included
operational and technical factors, environmental and social
Peru commissioned the 20 MW Manta hydropower plant with an
acceptability, a global decline in wholesale electricity prices,
investment of USD  43.6  million.77 Commercial operation of the
and adverse climate impacts on hydropower production and
84  MW La Virgen plant on the Tarma River was delayed after infrastructure. 92 Among the opportunities for industry expansion
fieldwork was halted for three months in the second quarter of were technology improvements and increased performance, the
the year.78 Chile commissioned 206 MW in 2020.79 remaining untapped potential of smaller resources, synergies
Globally, the pumped storage installed capacity increased with VRE and increased needs for grid flexibility.
1.5 GW in 2020, bringing the total capacity to 160 GW. 80 Israel’s
first pumped storage facility (300 MW) started operation during
the year, and in China 1,200  MW of pumped storage was
commissioned. 81 Additional large pumped storage projects in
the pipeline include Greece’s 680  MW Amfilochia complex,
Scotland’s 1.5 GW Cloire Glass facility and Turkey’s first pumped
storage facility, the 1 GW Eğirdir. 82 In India, two identical hybrid
projects secured financing: the Pinnapuram and Saundatti
facilities each have pumped storage capacity of 1.2 GW combined
with 4 GW total of solar and wind power capacity. 83
With most of Australia’s hydropower potential already developed,
pumped storage is an increasingly important component of the
country’s energy expansion, especially its plans to integrate
variable renewable energy (VRE) sources. 84 The Snowy 2.0
project, which aims to expand the existing Snowy scheme
by 2  GW, received government approval to build related
infrastructure, and the Ravine substation was commissioned
to power this construction. 85 In Tasmania, Lake Cethana was
identified as the first pumped storage project of the Battery
of the Nation initiative, with capacity nearing 600  MW. 86
The 500  MW Dungowan and 400  MW Big-T projects under
development aim to support VRE integration, providing firm
power and grid services. 87

i As of 2018, 31% of Brazilian hydropower plants were more than 40 years old.
ii Gouvães will be the first of three plants in the 1.2 GW Tâmega complex, with an estimated project investment of more than EUR 1.5 billion (USD 1.8 billion).
iii The Huizhou and Guangdong pumped storage plants hold the current record for the largest number of turbines, with eight each.
iv With the large decrease in electricity demand, wholesale prices for hydropower fell, jeopardising revenues and capital flows; greenfield development and
critical modernisation projects were halted; and current and new government programmes designed to support the sector were postponed or cancelled. See
endnote 91 for this section.
v Technologies related to the energy transition (renewables, electric vehicles and battery storage) and digitalisation are among the sectors that have generated
the most interest from investors in the post-COVID-19 market.

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 03

The disruptive effect of the pandemic-induced recession had to replace the original analog technology.101 In Australia, Voith
an impact on most of the world’s major hydropower technology announced a collaboration with Snowy Hydro to use acoustic
providersi. Voith Hydro suffered from a slowing market and sensing equipment, combined with cloud-based data collection
reported a 46% decline in orders and a 17% decline in sales. 93 and analysis and remote surveillance, to monitor hydropower
The Americas represented the largest share of Voith’s sales, assets in order to detect malfunctions before they occur and to
followed by Asia and Europe. 94 GE Hydro Solutions, representing optimise preventive maintenance.102
more than 25% of total installed capacity worldwide, reported
With the rising penetration of variable renewables in electricity
lower-than-expected revenues. 95 Andritz Hydro registered a
production, grid operators increasingly are looking for resources
12% decline in revenues but nearly the same level of order
to boost the flexibility of generation. Hydropower and pumped
intake as in 2019. 96
storage can provide the flexibility and support services that
Although renewable energy was underrepresented in the grid requires through quick ramping and other grid service
government recovery packages in 2020, some plans aimed to

MARKET AND INDUSTRY TRENDS

capabilities, with a lower emission profile than fossil fuel
boost economic growth, create jobs and cut greenhouse gas
generation assets.103 Hydropower generators contribute greatly
emissions. The International Energy Agency included hydropower
to grid reliability, but their primary revenue stream (market energy
modernisation in its three-year recovery proposal, which calls
prices) does not always compensate for the other ancillary
for spending around USD 20 billion annually over this period to
services that they can provide (such as inertial response and
support continued generation and to boost the creation of skilled
voltage regulation). These ancillary services could come at the
jobs. 97 Similarly, the International Hydropower Association (IHA)
expense of displacing the maximum operating capacity of the
and the International Renewable Energy Agency joined forces
plant to support them.104
to foster development of the 850  GW of hydropower capacity
expected to be needed by 2050 to achieve the climate goals of the In the United States, the California Independent System
Paris Agreement. 98 Operator (CAISO) signed contracts in 2019 to explicitly
The modernisation and refurbishment of hydropower plants compensate for the inertial and primary frequency response
continued in 2020 and was expected to remain a priority. services supplied by hydropower.105 Under current US market
Worldwide, tens of thousands of ageing water storage facilities conditions, the cost-benefit ratio of delivering ancillary
have reached their end-of-life, and the 52% of global hydropower services versus power generation is under study, and market
capacity that was installed before 1990 could be due for major mechanisms are emerging to monetise other grid services
rehabilitation. 99 Across Europe, North America, Central Asia and that hydropower provides.106 In 2019, the UK electricity system
Latin America, the refurbishment of ageing facilities has resulted operator held its first tender for “grid stability” and in early 2020
in improved operational efficiency and enhanced resource use.100 it awarded a contract to the 440 MW Cruachan pumped storage
Refurbishment and improvement of the 3.1  GW Yacyretá plant station to supply synchronous compensation.107 The Cruachan
on the Argentina/Paraguay border increased its capacity by facility began providing inertia in mid-2020, using a world-first
735 MW, and at the 14 GW Itaipu plant on the Brazil/Paraguay approachii estimated to save consumers up to GBP 128 million
border a USD 660 million digitalisation project was announced (USD 174 million) over the six-year period.108

More than half of

global
hydropower
capacity
could be due for major
rehabilitation.

i Major technology providers included Andritz Hydro (Austria), Bharat Heavy Electricals (India), Dongfang Electric (China), GE (US), Harbin Electric (China),
Hitachi Mitsubishi Hydro (Japan), Impsa (Argentina), Power Machines (Russian Federation), Toshiba (Japan) and Voith (Germany).
ii The Stability Pathfinder approach aims to provide inertia and other vital services without generating unnecessary electricity by using technologies such
as pumped storage, gas-fired power stations and synchronous condensers. Five six-year contracts were awarded in the first stage in early 2020.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

In West Africa, a study found that with adequate management for closed-loop pumped installationsii that reduces project
and operation of current and future facilities, hydropower costs, environmental impacts and development time.119
flexibility can support VRE integration while displacing fossil The industry also is addressing the sustainability of hydropower,
fuel plants.109 The industry is embracing these trends as projects using an integrated resource management approach to focus on
combining large amounts of solar and wind with hydropower
load balancing, water quality and water supply for non-energy
or pumped storage are emerging and costs are becoming
needs (such as irrigation, flood control, sediment management
competitive.110 The 500 MW Dungowan pumped storage plant in
and responding to other requirements from communities and
New South Wales, Australia was designed as part of the 4 GW
natural resources).120 Lao PDR and other countries along the
Walcha Energy Project to provide grid support services and firm Mekong River have experienced frequent extreme low water
power.111 Relatively low wind power prices in locations such as flows due to reduced rainfall and flow modifications upstream
Québec, Canada, where hydropower is abundant, can shift the
caused by hydropower operations. To promote and co-ordinate
dispatching approach by encouraging the use of wind when it is
sustainable management of the basin, the Mekong River
available and storing water until it is needed.112
Commission released the Hydropower Mitigation Guidelines to
Projects combining hydropower reservoirs and floating solar PV provide risk management and mitigation guidance during the
increased in 2020.113 The major benefits of these hybrid systems early stages of hydropower facility design.121 Poor management
include reduced evaporation, lower energy infrastructure costs has resulted in tensions among countries along the Mekong,
and generation complementarity due to seasonalityi.114 In some Nile, Tigris and other rivers.122 To address the inherent risks
cases, this approach is proposed to compensate for the declining facing the industry, particularly in heavily hydropower-dependent
performance of some hydropower plants.115 Other synergies regions, hydropower must be transformed into a resilient energy
being explored include using hydropower to power hydrogen source in the face of climate change.123
electrolysers. Construction of one of the largest electrolysers In 2020, in response to environmental concerns, areas of the
using hydropower, with capacity nearing 90 MW, was announced Balkans including the Federation of Bosnia and Herzegovina,
in Canada, while small-scale hydrogen production facilities were Montenegro and the Serbian region of Sokobanja faced a
being pursued in Iceland.116 surge of restrictions on small hydropower developments.124 The
Innovations in 2020 included the deployment of the world’s region’s hydropower industry launched an initiative in early 2021
largest hydropower turbine, a 1  GW turbine at the Baihetan to implement international good practices in development, in
facility built by China Three Gorges Corporation.117 Advances at line with the IHA Hydropower Sustainability Tools.125 Another
small facilities included the use of fish-friendly installations that sustainability initiative led by the IHA, the Hydropower
limit the diversion of river flow by using submerged generators Sustainability Assessment Fund, aims to help hydropower
or low-head turbines with blades designed to allow safe fish developers and operators assess the environmental, social and
passage.118 The US market demonstrated increased commercial governance performance of projects that are under preparation
viability for pumped storage through an innovative configuration and development or already in operation.126

i Operators can benefit from more stable yearly generation, as solar will produce more than hydropower in the dry season, and the reverse will occur during
the rainy season.
ii The novel closed-loop installation design required the use of a submersible pump turbine in a vertical “well” to replace the traditional underground power-
house, which is one of the most expensive and riskiest components of this type of facility.

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OCEAN POWER
KEY FACTS OCEAN POWER MARKETS
The oceans contain the largest untapped source of
renewable energy. While ocean power technologiesi
  Ocean power generation continued to
represent the smallest share of the renewable energy market, they
rise in 2020, surpassing 60 GWh.
are steadily advancing towards commercialisation. Deployments
  The industry is now moving from small- in 2020 added around 2  MW, bringing the total operating
installed capacity to an estimated 527  MW at year’s end.1 Two
scale demonstration and pilot projects
tidal barrages using mature turbine technologiesii represent
towards semi-permanent installations
more than 90% of total installed capacity: the 240 MW La Rance
and arrays of devices.

MARKET AND INDUSTRY TRENDS

station in France (installed in 1966) and the 254 MW Sihwa plant
  Maintaining revenue support for in the Republic of Korea (2011). 2

ocean power technologies is considered Tidal stream and wave power are the main focus of development
paramount if the industry is to achieve efforts. Advancements in these technologies have been
greater maturity. concentrated largely in Europe, especially the United Kingdom,
which has significant resources. However, generous revenue
support and ambitious research and development programmes
in Canada, the United States and China are spurring increased
development and deployment elsewhere. 3 In 2020, the EU set
an ambitious target for 40  GW of ocean power capacity by
2050, including at least 100  MW of pilot projects by 2025 and
1 GW by 2030.4
Tidal stream devices are approaching maturity, and pre-
commercial projects are under way. Device design for utility-scale
generation has converged on horizontal-axis turbines mounted
on the sea floor or attached to a floating platform. 5 These devices
have demonstrated considerable reliability in performance, with
total generation surpassing 60  GWh by the end of 2020 (up
from 45  GWh the year before).6 A range of other concepts are
under development, designed to meet specific applications or
environmental conditions, such as providing power to remote
communities or at low-energy sites.
Wave power devices remain in the prototyping phase, and
there is no convergence on design yet owing to the complexity
of extracting wave energy from a variety of wave conditions and
the wide range of possible operating principles.7 Developers
generally have chosen one of two distinct pathways for wave
energy development: devices above 100  kW target utility-scale
electricity markets, whereas smaller devices, usually below
50 kW, are intended primarily for specialist applications (oil and
gas, aquaculture, maritime monitoring and defence). 8

i Ocean power technologies harness the energy potential of ocean waves, tides, currents, and temperature and salinity gradients. In this report,
ocean power does not include offshore wind, marine biomass, floating solar PV or floating wind.
ii These are the same in-stream technologies used in some types of hydropower plants.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

OCEAN POWER INDUSTRY Two deployments took place in the United Kingdom in 2020.
Nova Innovation (UK) completed the installation of its 100 kW
The ocean power industry faced significant challenges in 2020
turbine in the Shetland Islands. 20 This is the first of three turbines
as the COVID-19 pandemic slowed manufacturing, delayed
deployed as part of the EnFAIT (Enabling Future Arrays in Tidal)
deployments and interfered with maintenance schedules. Most
project, a EUR  20  million (USD  24.6) effort to demonstrate a
planned deployments were postponed to 2021, although some
viable cost-reduction pathway for tidal energy. 21 Nova Innovation
deployments took place and power generation continued despite
also continued to successfully operate its 0.3  MW array in the
reduced maintenance. In total, seven tidal stream devices were
Bluemull Sound in Shetland, where the turbines have generated
successfully deployed in 2020, including a three-turbine array, a large
commercial-scale turbine and smaller demonstration deployments. without incident since 2016. 22 DesignPro Renewables (Ireland)
successfully completed deployment and testing of its 60  kW
In China, the China Three Gorges Corporation (CTG) manufactured DPR60 turbine at Kirkwall in the Orkney Islands, Scotland. 23
a 500 kW tidal turbine, designed by SIMEC Atlantis Energy, and
deployed it between two islands in Zhoushan archipelago.9 The Minesto (Sweden) installed and commissioned its 100  kW
CTG also made progress on the Zhoushan tidal current energy DG100 tidal kite systemi in the Vestmannasund strait, Faroe
project, deploying a 300  kW turbine.10 Another project, led by Islands. 24 By December, it had successfully delivered electricity
Zhejiang Zhoushan LHD New Energy Corporation Limited to the Faroese grid under a 2019 power purchase agreement
(LHD), achieved cumulative power generation exceeding (signed with the Faroese utility company SEV) for up to
1.95  GWh in October 2020.11 The modular device currently 2.2  MW of installed tidal capacity. 25 Minesto also is seeking
comprises two vertical-axis turbines of 400  kW and 600  kW, the necessary permits to deploy a 100 KW device at the EDF-
and LHD is working on adding a 1  MW turbine and increasing owned Paimpol Bréhat site in France. 26 Minesto received
the capacity of the platform to 4.1  MW.12 The main structure, EUR 14.9 million (USD 18.3 million) in EU funding through the
now completed, was planned to be deployed in the first quarter Welsh European Funding Office in 2019 and completed work in
of 2021.13 The project will be the first to benefit from a temporary 2020 on its Holyhead assembly hall, which will serve as a hub
feed-in tariff of EUR 0.33 (USD 0.40) per kWh, introduced in 2019.14 for engineering and operational activities. 27 An array of up to
80  MW capacity is planned for the Holyhead Deep site, eight
In the United States, Verdant Power installed a 105 kW array of
kilometres off the coast of north-west Wales. 28
three tidal power turbines at its Roosevelt Island Tidal Energy
Project site in New York’s East River, marking the first licensed Scotland’s MeyGen tidal stream array (the world’s largest at 6
tidal power project in the country.15 As of January 2020, the MW), owned and operated by SIMEC Atlantis Energy (UK),
array had operated continuously for three months, achieving surpassed 35 GWh of electricity generation in 2020. 29 Having
100 megawatt-hours (MWh) of generation in its first 85 days.16 In entered its 25-year operational phase in 2018, it generated
Igiugig, Alaska, the Ocean Renewable Power Company (ORPC, continuously in 2019, the longest period of uninterrupted
US) redeployed its 35 kW RivGen Power System, a submerged generation to date from a commercial-scale tidal array. 30 In 2020,
cross-flow river current turbine.17 Combined with microgrid the array faced operational challenges, and three turbines were
electronics and energy storage, the system will reduce diesel use retrieved for servicing in April 2021. 31 SIMEC holds a seabed lease
in Igiugig Village by an estimated 90%.18 OPRC also continued that would allow it to build the project out to 398 MW. 32 SIMEC
construction on a second RivGen device, targeting deployment also shipped a 500 kW turbine to Japan for installation in early
in summer 2021, and received USD 3.7 million in funding from the 2021 as part of Kyuden Mirai Energy’s demonstrator project in the
Department of Energy’s Advanced Research Projects Agency.19 country’s Goto islands. 33

Tidal stream
devices generated

15 GWh
of electricity in 2020.

i Minesto’s Deep Green device comprises a turbine integrated with a wing, which is tethered to the seabed and operates in a manner similar to an airborne kite.

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 03

In Canada, the government of Nova Scotia offered a feed-in tariff Building on a successful
of between CAD  385 and CAD  530 (USD  301 and USD  415) scale test in Denmark, The EU aims to install

40 GW
per MWh for demonstration projects.34 As of the end of 2020, Danish company Wave­
five Canadian developers were approved for a total of up piston tested a full-scale
to 22  MW.35 During the year, NewEast Energy obtained an device at the Oceanic
800  kW permit under Nova Scotia’s demonstration permits Platform of the Canary of ocean power
programme, which issued permits for a total of 9.3 MW of capacity Islands (PLOCAN, Spain). capacity by 2050.
(of the 10  MW available).36 Canada committed substantial new The initial phase of the
funding to tidal projects in 2020, investing CAD  28.5  million 200  kW project was
(USD  22.3  million) in Sustainable Marine Energy‘s floating deployed in December
tidal array (up to 9  MW) and CAD  4  million (USD  3.1  million) in 2020.49 The system
Nova Innovation’s 1.5 MW array in the Bay of Fundy.37 pressurises sea water,

MARKET AND INDUSTRY TRENDS

DP Energy and Sustainable Marine Energy (both Canada) which can then be used to drive a turbine or can be pumped
continued to advance the Uisce Tapa project under development through a reverse osmosis system to obtain desalinated water.
at the Fundy Ocean Research Centre for Energy (FORCE). A second device that will produce both electricity and
The CAD  117  million (USD  91.5  million) project aims to install fresh water was slated for deployment in 2021. 50
a 9  MW array of six Andritz Hammerfest turbines and is Existing deployments continued to operate through 2020,
supported by a Canadian government grant of CAD 29.8 million passing some significant milestones. The 296 kW Mutriku wave
(USD  23.3  million). 38 BigMoon Power successfully applied to plant in Spain, commissioned in 2011, surpassed a cumulative
occupy a vacant berth at FORCE. 39 Other provinces also are 2  GWh of electricity production. 51 At the SEM-REV test site in
making progress on ocean power, particularly as a means to France, the Wavegem hybrid wave and solar platform designed
provide electricity to remote communities.40 by GEPS Techno reached 18  months of offshore testing, which
Several projects have been progressing in France. The began in August 2019. 52
HydroQuest 1 MW marine tidal turbine prototype was deployed US company Ocean Power Technologies (OPT) reported
at Paimpol-Bréhat in April 2019 and connected to the national continuous operation of its device, deployed in the Adriatic
grid in June 2019, and has operated continuously since then.41 Sea, during its first 18 months. 53 The device was leased by Eni,
Featuring a dual vertical-axes design, this cross-flow turbine which in March 2020 opted to extend the lease for an additional
turns irrespective of the flow direction, enabling the device to 18  months. 54 Amid international travel restrictions that delayed
be fixed to its foundation without any efficiency loss. DesignPro deployment of a device in Chile, OPT contracted with SeaTrepid
Renewables continued testing its 25 kW turbine at the dedicated International (US) to conduct a remote installation, training local
SEENEOH test site on the Garonne River, where it has been engineers virtually on technical procedures and installation
deployed since September 2018.42 SABELLA (France) is planning requirements. 55
to redeploy its grid-connected D10-1000 tidal energy converter
Many companies focused on technology and project
on Ushant Island in 2021 and is also working with Morbihan
development in 2020. For example, Bombora Wavepower (UK)
Hydro Energies (France) to deploy two 250  kW turbines in the
delayed a planned deployment but accelerated design work on
Gulf of Morbihan.43 In Normandy, the government approved
a 3 MW project scheduled for deployment in Lanzarote, Spain in
the transfer of a 12  MW lease in Raz Blanchard to Normandie
2022. 56 Bombora also entered into an agreement with Technip
Hydroliennes, a consortium of partners including SIMEC Atlantis FMC (UK) to develop a floating offshore wind foundation
Energy and the Development Agency for Normandy.44
incorporating wave energy. 57 The first phase of the project will
In the Netherlands, the Dutch company Tocardo acquired the integrate 4 MW of wave power and 8 MW of wind power on a
1.25  MW Oosterschelde Tidal Power Plant and subsequently shared floating platform. 58
resumed full continuous operation.45 The plant comprises five Wave Swell Energy (Australia) finalised construction of its 200
of Torcado’s T-2 tidal turbines mounted on a sluice gate of the
kW device, scheduled for deployment on King Island, Tasmania in
Oosterschelde storm surge barrier.
early 2021. 59 Also in Australia, Carnegie Clean Energy continued
Two wave power deployments took place in 2020, with most to develop its CETO 6 device, after restructuring following the
planned deployments delayed by stalled manufacturing and company’s entry into voluntary administration in 2018.60 Carnegie
pandemic-related lockdowns during the year. also is developing a wave predictor that uses machine learning to
predict wave characteristics up to 30 seconds before they reach
In China, a consortium led by the Guangzhou Institute of Energy
the device, thereby increasing efficiency.61
Conversion deployed a full-scale 500 kW wave energy converter.
The Sharp Eagle-Zhoushan converter combines electricity US-based company Oscilla Power is finishing construction of a
generation with aquaculture and was deployed as part of the 100 kW device, expected to be installed in Hawaii in 2021.62 The
Wanshan megawatt-level Wave Energy Demonstration Project, company also entered the planning stages of a 1 MW demonstration
supported by the Ministry of Natural Resources.46 The Penghu project, targeting deployment off the coast of Kerala in southern
device, based on the Sharp Eagle, completed its 18-month India.63 In the United States, the OEbuoy device developed by
testing period in December 2020.47 Construction also began on a Ocean Energy (Ireland), which was transported from the state of
second 500 kW device, Changshan.48 Oregon to Hawaii in 2019, is expected to be deployed in 2021.64

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 RENEWABLES 2021 GLOBAL STATUS REPORT

Other ocean power technologies, such as ocean thermal energy The 2020 announcement of two large private investments
conversion (OTEC) and salinity gradient, remain well short of provide some positive indications. CorPower Ocean (Sweden)
commercial deployment, and only a handful of pilot projects have secured EUR 9 million (USD  11  million) in equity funding, and
been launched. REDstack (Netherlands) successfully tested its SIMEC Atlantis concluded a share placement agreement, raising
reverse electrodialysis (RED) technology and was planning a an initial investment of GBP 2 million (USD 2.7 million), with the
first demonstration plant.65 Akuo Energy (France) announced option of increasing this to GBP 12 million (USD 16 million).71 The
plans to develop an OTEC plant on Bora Bora, French Polynesia, UK government is expected to reform its Contract for Difference
as part of the EU-funded project, Integrated Solutions for the (CfD) mechanism, separating ocean power from offshore wind,
Decarbonization and Smartification of Islands (IANOS).66 Puerto thereby increasing price competitiveness.72
Rico (US) is in the early stages of developing the Puerto Rico As of 2018, more than EUR 6 billion (USD  7.4  billion) had been
Ocean Technology Complex (PROtech) and aims to invest an invested in ocean power projects worldwide, of which 75%
estimated USD  300  million to build a 5  MW to 10  MW OTEC was from private finance.73 A 2018 European Commission
plant by mid-2027.67 implementation plan estimated that EUR 1.2 billion (USD 1.5 billion)
in funding was needed by 2030 to commercialise ocean power
The Ocean Thermal Energy Association was recently reinvigorated,
technologies in Europe, requiring equal input from private sources,
and a group of member countries of the International Energy
national and regional programmes, and EU funds.74 The industry
Agency’s Ocean Energy Systems collaboration are working to
is collaborating to develop a common evaluation framework
assess the current status and global potential of OTEC, with a
for ocean power technologies, aiming to provide clarity for all
white paper expected in 2021.68
stakeholders, including public and private investors.75
Technology improvements and steep cost reductions are
Deploying ocean energy at scale also will require streamlined
still needed for ocean power to become competitive in utility consenting processes.76 Uncertainty regarding environmental
markets. The industry has not yet received the clear market interactions often has led regulators to mandate significant data
signals it needs to take the final steps to commercialisation.69 collection and strict environmental impact assessments, which can be
The lack of consistent support schemes for demonstration costly and threaten the financial viability of projects and developers.77
projects has proven especially challenging for developers, who Current scientific knowledge suggests that the deployment of a
have struggled to build a compelling business case, and the single device poses little risk to the marine environment, although
sector remains highly dependent on public funding to leverage the impacts of multi-device arrays are not well understood.78
private investment.70 Dedicated revenue support is considered This calls for an “adaptive management” approach that responds
paramount for increasing investment certainty by providing to new information over time, supported by more long-term data
predictable returns until the industry achieves greater maturity. and greater knowledge sharing across projects.79

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 03

SOLAR PHOTOVOLTAICS (PV)

KEY FACTS SOLAR PV MARKETS
Solar PV had another record-breaking year, with
  Solar PV had another record-breaking year in new installations reaching as much as an estimated
2020. Anticipated policy changes drove much of 139  GWDCi; this brought the global total to an estimated
760  GWDC , including both on-grid and off-grid capacity.1 These
the growth in the top three markets – China, the
preliminary global numbers are uncertain, and the level of
United States and Vietnam – but several other
uncertainty is increasing year-by-year.
countries saw noteworthy expansion.
Business closures, stay-at-home orders and restrictions on
  Favourable economics have boosted interest
movement related to the COVID-19 pandemic all reduced

MARKET AND INDUSTRY TRENDS

in distributed rooftop systems. In South electricity consumption and shifted daily demand patterns. 2 The
Australia, the growth of distributed solar PV pandemic also resulted in delays in shipping and deliveries of
has made the state’s power system the first solar panels and related hardware, in customer acquisitions, and
large-scale system in the world to approach in project permitting and construction, exacerbating existing
the point at which rooftop solar PV effectively challenges in some markets. 3 Yet, while growth in some markets
eliminates demand for electricity from the grid. was below the strong expectations going into 2020, solar PV
  The solar PV industry rode a roller coaster in 2020, managed to achieve the largest increase in capacity ever seen
in a single year.4 The distributedii sector was affected more than
driven largely by pandemic-related disruptions,
the utility sector, but several countries saw surges in residential
as well as by accidents at polysilicon facilities
demand. 5 Looming policy changes at the end of the year drove
in China and a shortage of solar glass. These much of the growth in the top three markets (China, the United
disruptions, due in large part to heavy reliance on States and Vietnam), but several other countries also experienced
China as the world’s dominant producer, combined noteworthy market expansion.6 (p See Figure 25.)
with concerns about possible forced labour
in polysilicon production, led to calls in many
countries for the creation of local supply chains.
  New actors entered the sector. Competition
and price pressures continued to motivate
investment to improve efficiencies, reduce
costs and improve margins.

i For the sake of consistency, the GSR endeavours to report all solar PV capacity data in direct current (DC); where data are known to be in AC, that is specified
in the text and endnotes. Data are preliminary and a range of estimates exists; global estimates in text are based on data from International Energy Agency
Photovoltaic Power Systems Programme and Becquerel Institute. See endnote 1 in this section for further details.
ii Distributed refers to systems that provide power to grid-connected consumers, or directly to the grid, but on distribution networks rather than on bulk trans-
mission or off-grid systems. See endnote 5 for this section. For more on distributed off-grid systems for energy access, see Distributed Renewables chapter.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

FIGURE 25.
Solar PV Global Capacity and Annual Additions, 2010-2020

Gigawatts

~760
800
~760
World
+139
700 Gigawatts Total
621
600 +110
512
Annual additions
500 +104
407 Previous year‘s
400 capacity
+103
305
300
+77
228
200 178 +50
138 +40
100 +38
100 39 70 +30
+17 +31

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note: Data are provided in direct current (DC). Totals may not add up due to rounding.
Source: Becquerel Institute and IEA PVPS. See endnote 6 for this section.

Demand for solar PV is spreading and expanding as it There are still challenges to address for solar PV to become
becomes the most competitive option for electricity generation a major electricity source worldwide, including policy and
in a growing number of locations, both for residential and regulatory instability in many countries, unreliable or insufficient
commercial applications and increasingly for utility-scale grid infrastructure, and financial and bankability challenges.15
projects – even without accounting for the external costs of fossil As the level of penetration rises, the variability of solar PV is
fuels.7 This also is becoming the case for solar-plus-storage in having an increasing effect on electricity systems, raising the
an increasing number of markets. 8 In 2020, an estimated 20 importance of effectively integrating solar energy under varying
countries added at least 1 GW of new solar PV capacity, up from technical and market conditions in a fair and sustainable
18 countries in 2019, and all continents contributed significantly manner.16 In general, opposition to solar PV deployment from
to global growth. 9 By the end of 2020, at least 42 countries had local incumbents is lower than a decade ago, with many utilities
a cumulative capacity of 1 GW or more.10 now actively engaged in solar PV deployment and operations,
Solar PV plays a meaningful role in electricity generation in including distributed generation; however, opposition persists
a growing number of countries. By the end of 2020, at least in several countries and among some actors, particularly in the
15 countries had enough capacity in operation to meet at least 5% fossil and nuclear energy industries.17
of their electricity demand with solar PV.11 Solar PV accounted for The cost-competitiveness of solar PV is increasingly a driver
around 11.2% of annual generation in Honduras and for notable of investment, but generally it is insufficient on its own.18 In
shares also in Germany (10.5%), Greece (10.4%), Australia (9.9%), most countries, there is still a need for adequate regulatory
Chile (9.8%), Italy (9.4%) and Japan (8.5%), among others.12 Spain frameworks and policies governing grid connections to
and the United Kingdom broke solar generation records early in overcome cost or investment barriers in some markets and
the year, due largely to new capacity as well as to higher output to ensure a fair and level playing field.19 Government policies
resulting from clearer air during COVID lockdowns; clearer skies continued to propel most of the global market in 2020, with
during lockdowns also enabled nearly 10% more sunlight to reach feed-in tariffs (FITs) and tenders the leading policy driversi of the
solar panels in Delhi and contributed to increased output in the centralised market, and FITs and incentivised self-consumption
United Arab Emirates.13 However, smoke from wildfires in Australia or net metering the primary drivers of the distributed market. 20
and the US state of California had the reverse effect on output, (p See Distributed Renewables chapter for off-grid solar and
while also negatively affecting solar variability and forecasting.14 related policies for energy access.)

i In the United States, tax credits also continued to play an important role. See endnote 20 for this section.

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 03

Self-consumption continued to represent an important and China added 48.2 GW of solar PV capacity in 2020 (including
growing share of the market for new distributed systems in several 32.7 GW of centralised and 15.5 GW of distributediii solar PV),
countries. 21 Although still a small share of the annual market, making the year second only to 2017 (52.9  GW) for annual
a number of purely competitive (without direct government additions. 29 The market increase of 60% – driven largely by
support) large-scale systems were being constructed in 2020; pending changes to the country’s FIT structure – followed two
interest in this segment is considerable and growing rapidly. 22 consecutive years of contraction, and came despite project
For the eighth consecutive year, Asiai eclipsed all other regions construction delays early in 2020 caused by pandemic-related
for new installations, accounting for nearly 58% of global labour shortages and supply chain disruptions. 30 The central,
additions; even excluding China, Asia was responsible for around eastern and southern regions of China accounted for about 36%
23% of new capacity in 2020. 23 Asia was followed by the Americas of additions, with 64% in the western and northern regions. 31
(18%), which moved ahead of Europe (16%). 24 China continued to The leading provincial installers were Guizhou (5.2 GW), Hebei
dominate the global market (and solar PV manufacturing), with a (4.9  GW) and Qinghai (4.1  GW). 32 At year’s end, China’s total

MARKET AND INDUSTRY TRENDS

share of nearly 35% (up from 27% in 2019). 25 grid-connected capacity exceeded 253.4  GW, well above the
official 13th Five-Year Plan (2016-2020) target for the year
The top five national markets – China, the United States, Vietnam,
(105 GW). 33
Japan and Germany – were responsible for almost 66% of newly
installed capacity in 2020 (up from 58.5% for the top five in 2019 A major driver of China’s solar PV market was a rush to install
but down from around 75% in 2018, as the global market becomes projects before the national FIT was phased out at year’s end
somewhat less concentrated); the next five markets were India, for centralised as well as commercial and industrial distributed
Australia, the Republic of Korea, Brazil and the Netherlands. 26 The systems. 34 The policy changes result from a mounting deficit
annual market size required to rank among the top 10  countries in China’s Renewable Energy Development Fund, which has
remained at around 3 GWii. 27 The leading countries for cumulative caused a backlog of outstanding FIT payments for existing
solar PV capacity continued to be China, the United States, Japan, projects (only worsened by the pandemic), and from the central
Germany and India, and the leaders for capacity per capita were government’s belief that solar (and wind) power is capable of
Australia, Germany and Japan. 28 (p See Figure 26.) competing without subsidies with coal-fired power. 35

i Note that Turkey is considered to be part of the Asia region for purposes of the GSR.
ii This is the capacity addition of the Netherlands, which ranked tenth for annual installations.
iii “Distributed” solar PV in China includes ground-mounted systems of up to 20 MW that comply with various conditions, in addition to commercial,
industrial and residential rooftop systems. Distributed generation consists largely of commercial and industrial systems and, increasingly, residential
and floating projects. See endnote 29 for this section.

FIGURE 26.
Solar PV Global Capacity, by Country and Region, 2010-2020
Gigawatts
800

Rest of World
700 India
Japan
600
United States
European Union
500
China
400

300

200

100

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note: Data are provided in direct current (DC). European Union includes the United Kingdom throughout the 2010-2020 period.
Germany's share of the EU total has declined from over 58% in 2010 to just under 36% in 2020 due to growth in other EU markets.
Source: See endnote 28 for this section.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

China’s market for average declined to 4.8%.42 Minimising curtailment is a national

centralised utility systems Vietnam added an priority and is considered particularly important for utility-scale
(greater than 20  MW)
expanded considerably,
estimated “grid parity” projects, which were introduced in 2019 to help
China move away from subsidies.43 China’s output from grid-
up nearly 83% in 2020. 36
The increase is thanks in
11.1 GW in 2020, connected systems increased more than 16% in 2020, to 261
up from 4.8 GW in 2019 TWh, bringing solar PV’s share of electricity generation (from
part to the completion of
and 0.1 GW in 2018. grid-connected sources) to 3.4% in 2020 (up from 3% in 2019).44
enormous hybrid projects
– combining solar PV, The central and provincial governments are focused increasingly
wind power and energy on renewable energy integration. In 2020, China’s central
storage – by some of government issued guidance to ensure that renewable electricity
the biggest state-owned is consumed locally, to the extent possible, and governments at
companies. 37 China’s largest solar-plus-storage project (2.2 GW all levels increasingly link solar PV support and bidding rounds
of solar PV plus nearly 203 MW of battery storage) was connected to energy storage and local grid capacities.45 By the end of
to the grid in late 2020 in the desert of Qinghai province. 38 Total 2020, one-third of China’s provinces mandated that new
distributed installations also rose (27%) during the year, with solar PV installations be combined with energy storage.46
annual additions of residential systems almost doubling relative
to 2019 (to 10.1  GW) and more than making up for a decline Vietnam saw another surge in installations: after adding
in commercial and industrial installations (5.4  GW). 39 Most 4.8 GW in 2019 (up from 106 MW in 2018 and 8 MW in 2017),
of the residential capacity was added in Shandong province the country brought an estimated 11.1  GW into operation in
(4.57 GW) and Hebei greater area (4.1 GW).40 2020, raising it to third place globally for additions and eighth

Curtailment of solar energy in China averaged 2% for the year, for total solar PV capacity.47 (p See Figure 27, and Reference
unchanged from 2019, although the average rate was higher Table R15 in GSR 2021 Data Pack.) Whereas growth in 2019
during pandemic-related lockdowns in January (2.8%) and was driven by the pending expiration of Vietnam’s FIT1
February (5.6%) due to reduced electricity consumption.41 The scheme, which encouraged large ground-mounted projects,
curtailment rate continued to be highest in northwest China, most of the increase in 2020 was in rooftop systems, racing to
particularly in Xinjiang and Gansu, but the region’s annual qualify for the FIT2 before it expired at year’s end.48

FIGURE 27.
Solar PV Capacity and Additions, Top 10 Countries for Capacity Added, 2020

Gigawatts

300

+48.2
250
100 +19.2

200 Added
80
+28.7 +8.2 in 2020

2019 total
150 60
+4.9
+4.4
100 40

+4.1
50 20 +11.1 +4.1
+3.1 +3.0

0
Rest China United Vietnam Japan Germany India Australia Republic Brazil Netherlands
of World States of Korea

Note: Data are provided in direct current (DC).

Source: See endnote 47 for this section.

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 03

In total, nearly 83,000 rooftop systems were installed in Vietnam on imported solar equipment and the cancellation of some projects
in a single year, increasing rooftop capacity from less than awarded under earlier auctions due to regulatory delays.61
0.4 GW to 9.7 GW (with 6.7 GW connected in December alone), The rooftop market (1.3  GW) in India has been hampered by
and bringing the country’s total solar PV capacity to 16.4 GW.49 inconsistent government policy and restrictions, as well as
Vietnam’s interest in solar PV is largely to meet rising electricity by uncertainties related to the pandemic and pressure by
demand – which has increased 10% annually on average in recent distribution companies to discontinue net metering and adopt
years due to population growth and economic expansion – as grid usage charges.62 After falling through much of 2020,
well as to ensure energy security and reduce carbon emissions. 50 demand for rooftop systems rose towards the end of the year as
The rapid growth in solar generation has placed additional government incentives enticed residential consumers, and as the
stress on the country’s underdeveloped grid, leading to commercial and industrial sectors (the primary rooftop markets)
curtailment, and as of early 2021 Vietnam was considering saw solar as a means to reduce their operational costs.63
options for financing necessary system upgrades. 51

MARKET AND INDUSTRY TRENDS

Other Asian countries that added substantial capacity in 2020
The third largest market in Asia and the fourth largest globally was included the Republic of Korea (4.1 GW), Chinese Taipei (1.7 GW)
Japan.52 Following four years of contraction, Japan added 8.2 GW and the Philippines (1.1 GW).64 The Republic of Korea moved up
(up more than 16%) for a total of 71.4 GW – surpassed only by China two steps in the global rankings for capacity added, to eighth
and the United States.53 However, Japan’s market continued to face place, and continued to rank ninth for total capacity (15.9 GW).65
challenges related to land availability and grid constraints, which Turkey added an estimated 1  GW for a total of 9.5  GW.66 The
are helping to keep the country’s large-scale solar PV costs among Turkish market was driven by a new net metering law and self-
the highest in the world.54 In 2020, the country’s FIT was revised consumption, representing a shift away from the traditional
to focus support on systems for locally consumed generation (self- market of megawatt-scale projects.67 Pakistan also added
and community-consumption), the ability to isolate in the event capacity, as did Kazakhstan, which held auctions and brought
of blackouts, and agricultural PV (see later discussion).55 Solar online at least two large projects in 2020.68
PV accounted for an estimated 8.5% of Japan’s total electricity
The Americas represented around 18% of the global market in
generation in 2020, up from 7.4% in 2019, with the highest
2020, due largely to the United States, which continued to rank
local contributions in Shikoku (13%) and Kyushu (14%).56
second globally for both new installations and total capacity.69
India’s solar PV market contracted again, to the lowest level in five (p See Figure 28.) The country added a record 19.2  GW – up
years, and investments in the solar sector were down 66% relative 43% over 2019 and 27% above the previous peak in 2016 – for a
to 2019.57 Despite the ongoing decline, India ranked sixth globally total approaching 96 GW.70 Solar PV was the leading source of
for additions and fifth for total capacity.58 Around 4.4 GWi of solar new power capacity for the second consecutive year, accounting
PV capacity was added during the year, bringing the national for 43% of all US power capacity additions in 2020 (compared
total to 47.4  GW.59 In the large-scale market, pandemic-related with 4% a decade earlier), the largest share to date.71 The market
lockdowns and labour shortages delayed project construction and continued to be more geographically diverse, with 27  states
auctions.60 These setbacks further aggravated existing challenges, adding more than 100 MW, even as the top states for additions
such as the lack of transmission infrastructure and land permits, remained California (3.9  GW), Texas (3.4  GW) and Florida
the reluctance of distribution companies to sign power purchase (2.8 GW).72 Utility-scale solar PV (87.7 TWh) plus grid-connected
agreements (PPAs) (due to expectations that project bids at small-scale systems (41.7 TWh) generated a total of 129.5 TWh, or
auction will continue to fall at a rapid pace), the extension of duties 3.2% of US net generation in 2020.73

i For details on India, see endnote 59 for this section.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

FIGURE 28.
Solar PV Global Capacity Additions, Shares of Top 10 Countries and Rest of World, 2020

21%
Rest of World
14%
United States
Next 7 countries
8% Vietnam
Japan 6%
35% 23% Germany
India
4%
3%
China
Australia 3%
Republic of Korea 3%
Brazil 2%
Netherlands 2%

Note: Totals may not add up due to rounding.

Source: See endnote 69 for this section.

The US market was led by the utility-scale sector, which was Demand for solar-plus-
up 67% to nearly 14  GW, for a year-end total of 59.8  GW.74 storage systems was up Increased interest in
The significant jump came as developers rushed to qualify in all US sectors in 2020. home improvements
for the federal investment tax credit (ITC) before the expected It accounted for nearly during the pandemic
rate reduction at the end of the year (the rate ended up being 6% of behind-the-meter helped drive demand for

new residential
extended for two years in December 2020).75 The volume of solar systems and for
new projects announced in 2020 reached 30.6 GW, bringing the more than one-fourth
pipeline of US utility-scale solar PV projects under contract at
year’s end to 69 GW.76 Growth in this sector is driven by several
of all contracted utility-
scale projects. 84 Utility
systems
commissions in some in several countries.
factors, including self-enforced utility carbon reduction plans, the
states (e.g., Nevada)
expansion of state-level mandates through renewable portfolio
established goals for
standards (RPS laws), and large corporations with renewable or
energy storage procurement, and some utilities brought into
carbon reduction goals (p see Feature chapter).77
operation new solar-plus-storage plants, while others released
Non-residentiali installations declined (down 4%) for the solicitations for new capacity.85 Interest in energy storage for
third consecutive year and faced the worst pandemic-related large-scale plants has been driven by falling costs (of both solar
delays of any sector, adding 2.1  GW for a total of 16.7  GW.78 generation and batteries) combined with rising solar energy
In contrast, the residential market rose 11% compared with penetration, which improves the business case for projects that
2019, with a record 3.2 GW added for a total of 19.1 GW.79 The can dispatch this power to meet evening peak demand.86 Demand
pandemic caused great disruption in this sector as well, with is also growing for hybridised solar and wind power plants,
installers laying off thousands of employees and some filing encouraged by falling costs and looming tax credit deadlines,
for bankruptcy, and it forced many installers to shift sales from and as a means to optimise land use and transmission capacity
in-person to online and to make serious price cuts. 80 Battles to and to increase revenue. 87 (p See Systems Integration chapter.)
weaken state net metering laws also continued during the year.81 A handful of countries in Latin America and the Caribbean
Despite the challenges, the market picked up considerably continued to expand their solar PV capacity, despite challenging
in the second half of 2020 due in part to increased interest economic conditions, thanks largely to an abundance of solar
in home improvements. 82 Residential solar PV with battery resources, falling prices and favourable policies in some countries.88
installations also rose, particularly in California following rolling The region’s top four installers in 2020 were Brazil (adding 3.1 GW),
power outages due to massive wildfires. 83 Mexico (1.5 GW), Chile (0.8 GW) and Argentina (0.3 GW). 89

i Includes commercial, government, non-profit and community solar PV systems.

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MARKET AND INDUSTRY TRENDS

Brazil maintained its regional lead for annual additions and its second-place regional ranking for total operating capacity.100
surged past Mexico (5  GW) for total capacity, ending the year Installations in the EU-27 were up significantly relative to 2019,
with 7.7 GW. 90 Annual installations in Brazil were up 68.6% over and noteworthy additions also occurred elsewhere in the region.101
2019. 91 For the second year running, Brazil’s distributed segment The Russian Federation nearly doubled its operating capacity,
(defined as less than 5 MW) led the market for capacity added adding more than 0.7  GW for a total of 1.9  GW.102 The United
(2.5 GW), investments and job creation, driven by a national net Kingdom added 0.5 GW, above installations in the previous year
metering regulation and electricity prices rising above inflation but well below the 2015 peak (4.1  GW), bringing total capacity
rates. 92 Residential systems accounted for the largest portion to 13.9  GW.103 However, several additional large-scale projects
of distributed installations (74.4%), but commercial and rural without direct subsidies were under construction in the country,
systems also saw rising shares. 93 some incorporating energy storage to access higher market
prices.104 As part of the effort to accelerate decarbonisation, the
During 2020, the debate regarding proposed changes to Brazil’s
UK government announced plans to reopen access to Contracts
net metering mechanism was interrupted as the National
for Differencei auctions for solar PV (and onshore wind power),
Congress turned its focus to the pandemic, but a new legal
for the first time since 2015.105
framework for distributed generation was under development in
early 2021 and expected to soon become law. 94 Public energy Installations in the EU-27 were well below expectations due to
auctions for large-scale power plants were postponed, also due the pandemic; nevertheless, 2020 turned out to be the region’s
to the pandemic, but new tenders (including for solar PV) were second-best year on record, and solar PV provided more
scheduled for the years 2021-2023. 95 Large projects also moved new power capacity than any other generating technology.106
ahead in the private sector: Brazil’s largest-ever solar PPA was Around 19.3  GW was brought online, raising total solar PV
signed in March for the 330 MW Atlas Casablanca plant, which capacity by about 15%, to 140.5  GW.107 Most EU markets have
will provide electricity for Anglo-American mining operations. 96 moved beyond FITs and are propelled by the competitiveness
of solar generation – in many EU Member States, solar PV is
The mining industry also helped drive new installations in Chile,
now the cheapest incremental source of electricity and the
where a copper mining company signed a PPA in 2020 for
fastest to install.108 Economic competitiveness is elevating
around-the-clock solar energy (with battery storage) to cover
interest in self-consumption and corporate renewable power
12% of the Collahuasi mine’s electricity needs. 97 Also in Chile,
sourcing (including via direct bilateral PPAs), and is encouraging
an existing plant reportedly became the world’s first utility-scale
governments that are looking to meet national renewable energy
solar PV facility licensed to deliver commercial ancillary services
targets through tenders.109 At the same time, new challenges are
to the grid. 98 Chile’s solar PV capacity was approaching 3.5 GW
emerging, including access to grid connections, land availability
at year’s end, with another 3.9 GW under construction. 99
and planning permission (particularly in areas that already have
Europe followed the Americas for additions in 2020, with more a large installed base), and a shortening of PPA time periods with
than 22 GW added for a year-end total of 162.7 GW, maintaining the shift towards merchant projectsii.110

i The Contracts for Difference (CfD) is the UK government’s primary mechanism for supporting renewable electricity generation. Developers that win contracts
at auction are paid the difference between the strike price (which reflects the cost of investing in the particular technology) and the reference price (a measure
of the average market price for electricity).
ii Merchant projects are those with no regulated or contracted income. The electricity generated is sold into competitive wholesale markets.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

In 2020, 22 of the 27 EU been grid-connected in Europe without a government subsidy

Member States added Small-scale rooftop systems or auction programme.129 Spain’s self-consumption market
more capacity than they alone accounted for expanded nearly 30%, with tremendous growth in the residential

6.5%
had installed in 2019; sector.130 Solar PV capacity accounted for 6.1% of Spain’s
even so, nearly three- electricity generation in 2020, up from 3.5% in 2019.131
fourths of new capacity The annual market in Poland more than doubled in 2020 (2.6 GW
came online in only of Australia's total added for a total of 3.9 GW), driven by favourable self-consumption
five countries.111 Germany electricity generation policies and low-interest loans.132 Industrial consumers have started
regained its top position in 2020. turning to renewables, including solar PV, in place of coal-fired
(held for most of the past
generation.133 Other notable developments in Europe included:
two decades) from Spain, Switzerland saw a record market increase (up at least 30%), driven
and was followed by in part by a rising desire for energy self-sufficiency; in Denmark
the Netherlands (3  GW), Spain (2.8  GW), Poland (2.6  GW) and a solar initiative was under way to enable more than 400,000
Belgium (1 GW).112 The top EU countriesi for total capacity at year’s residents to become shareholders in solar parks (totalling 1 GW)
end were Germany, Italy, Spain, France and the Netherlands.113
across Denmark and Poland; and Lithuania reportedly became the
Germany saw another large jump in installations (up 27%), with first country in the world to launch an online platform that enables
nearly 4.9  GW added for a total approaching 53.9  GW.114 The consumers to buy electricity from a remote solar panel.134
commercial segment saw slower growth in 2020, but still expanded In the South Pacific, Australia continued to be the largest
slightly and accounted for 59% of the total market.115 The large-scale market by far, ranking seventh globally for both additions and
segment (>750  kW, mostly ground-mounted) accounted for less
total capacity.135 The first half of 2020 was challenging due to
than 18% of the market, but it saw substantial growth (up 61%) as a devastating bushfires, delays in finalising grid connections as
result of special tenders.116 Demand for residential rooftop systems well as the pandemic, all of which caused a lull in utility-scale
(<10 kW) nearly doubled relative to 2019, and the sector accounted
installations early in the year.136 But the fires also affected
for 23% of the annual market (up from 15%) as homeowners became thousands of kilometres of transmission and distribution lines,
increasingly motivated by environmental concerns and the desire for which drove interest in – and policies supporting – micro grids
energy independence and electric mobility.117 More than half of the and stand-alone power systems, particularly solar PV, in remote
new rooftop systems (<10 kW) were installed with battery storage.118
and rural areas.137 Overall, Australia added an estimated 4.1 GW
The 52 GW capii on solar PV systems under Germany’s feed-in of solar PV capacity in 2020 for a total exceeding 20.4  GW.138
law was officially removed in July, only weeks before the limit Despite the impacts of fires on solar output across much of the
was reached.119 In late 2020, the federal government set new country, solar PV generation rose more than 24%, to 22.5 TWh,
targets for 83 GW by 2026 and 100 GW by 2030 under the new or 9.9% of Australia’s total; small-scale rooftop systems alone
Renewable Energy Sources Act (EEG).120 As solar PV penetration accounted for 6.5% of total generation.139
continues to rise, feed-in management is playing an increasingly
The rooftop sector continued to contribute most of the capacity
important role. The EEG includes specific requirements for solar
added in Australia, with new records set for both solar PV and
systems, depending on plant size, to enable the grid operator to
home battery storage installations.140 More than 2.6 GW of solar
remotely modulate the amount of electricity fed into the grid, as PV systems under 100  kW was installed on rooftops of homes
needed.121 Solar PV produced an estimated 50.6  TWh in 2020, and small businesses in 2020, up from about 2.3 GW in 2019, for a
accounting for 10.5% of Germany’s electricity generation.122
total exceeding 13 GW.141 Households added an estimated 23,796
The Netherlands has seen steady market growth for several years, small-scale battery systems (up 5% over 2019), with a combined
driven by net metering for residential and small business systems capacity of 238 MWh.142
and tendering for larger plants.123 More than 3  GW was added The surge in demand for both solar PV and home storage
in 2020 (nearly half of which was commercial rooftop systems)
systems in Australia was driven by several factors, including
for a total of 10.2 GW.124 Interest in floating solar PV plants and
concerns about climate change, rising electricity costs,
solar carports increased during the year, and the country’s largest
supportive policies, the desire for energy independence and
ground-mounted plant (110 MW) became operational.125 For all of
pandemic-related impacts (home energy bills rose due to remote
2020, grid-connected solar PV covered around 6.6% (7.92 TWh)
work, even as solar prices continued to fall, and people had more
of the country’s electricity demand.126
time to devote to home improvements).143 By one estimate, nearly
Spain added around 2.8  GW in 2020 for a total of 12.7  GW.127 2.7 million homes and businesses across the country had rooftop
Whereas much of the capacity added in 2019 had been due to solar systems by the end of 2020.144 As of early 2021, the share
tenders held in 2017, in 2020 a large portion of installations was of dwellings with solar PV systems exceeded 20% in every state
private PPAs for projects without direct public support.128 This and territory except Tasmania; the top three were Queensland
marks the first time that such a sizeable amount of capacity has (41%), South Australia (40.3%) and Western Australia (33.2%).145

i The United Kingdom ranks third in Europe for total capacity, following Germany and Italy.
ii Exceeding the 52 GW cap would have ended feed-in payments for new systems up to 750 kW. The revised law, passed in December, maintains the feed-in
payment for systems up to 300 kW. See endnote 119 for this section.

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 03

The state of South Australia has achieved one of the highest In the Middle East, social impacts of the pandemic, combined
levels of solar penetration in the world and faces a widening with a decline in oil and gas pricesi, slowed progress in the
mismatch between supply and demand. On many days, the planning and completion of new solar PV projects.159 At the
amount of electricity entering the grid is well above the level of same time, the pandemic highlighted the importance of energy
demand, making the state’s power system the first large-scale security and increased awareness of and political support for
system in the world to approach zero operational demand due more-sustainable energy sources.160 The largest installers in the
to the growth of distributed solar PV, and requiring a number of region were Israel (0.6 GW), Oman (0.4 GW) and the United Arab
measures to maintain grid stability and manage the electricity Emirates (at least 0.3  GW).161 Dubai (UAE) completed phase 3
system.146 In response, new tariffs were introduced to encourage (totalling 0.8 GW) of its Mohammad Bin Rashid Solar Park,
a shift in consumption to peak solar hours, as well as new Jordan brought online a 46 MW plant, and Oman’s first renewable
technical requirements that enable the market operator to turn independent power producer (125  MW) began commercial
off systems remotely.147 operations.162 Oman also announced plans for a 3.5 GW project

MARKET AND INDUSTRY TRENDS

Across Australia, transmission infrastructure has not kept pace to produce hydrogen with solar PV and is targeting thousands
with the growth of renewables, especially large-scale solar (and of residential rooftop installations in Muscat.163
wind) power projects.148 Grid challenges, including insufficient Focus on distributed rooftop generation is increasing across
system strength and congestion combined with a lack of clarity the Middle East as a means to provide energy access and to
about state and federal policies, have resulted in delayed and reduce electricity bills for residential, commercial and industrial
cancelled renewable power projects, and have raised barriers to consumers.164 In 2020, Saudi Arabia launched its first regulatory
investment.149 In early 2020, frustration over grid congestion led framework for 1-2  MW grid-connected systems, and several
Victoria to break away from national electricity market rules in other countries in the region were creating initiatives to advance
order to enact legislation to upgrade transmission infrastructure distributed solar PV in the commercial and industrial sectors.165
and prioritise storage and other projects to ensure a resilient At year’s end, the top countries in the Middle East for total
energy system.150 operating capacity were the United Arab Emirates (almost
To address challenges related to utility-scale projects in 3 GW), Israel (2.5 GW) and Jordan (1.5 GW).166
particular, the Australian Energy Market Operator (AEMO) was
developing plans in 2020 for several Renewable Energy Zones
(REZs) across five Australian states; the REZs will host solar and
wind power projects co-located with energy-intensive industry,
along with energy storage and strong grid connections.151
In addition, Australia has seen a surge in small utility-scale
systems (especially around 5 MW), which are relatively easy to
grid-connect and face fewer transmission constraints.152
Other markets in the South Pacific remained small in comparison.
In 2020, New Zealand commissioned a 1 MW floating array atop
a wastewater treatment lake, the country’s largest installation,
and the Cook Islands, Fiji, Micronesia, New Caledonia, Papua
New Guinea and the Kingdom of Tonga were among the small
island states setting targets, commencing pilot programmes
or launching tenders for solar PV (plus storage in many cases)
in their efforts to reduce reliance on fuel imports and provide
universal electricity access.153 Fiji has seen rapid growth in
commercial rooftop systems since 2015 and, in 2020, moved
closer to its target of 100% renewable energy with plans to add
at least 15  MW to the national grid.154 As of 2020, Micronesia
generated more than 11% of its electricity with solar PV.155
The Middle East and Africa combined added an estimated
4  GW in 2020 for a year-end total as high as 24  GW.156 An
increasing number of countries across the region had net
metering policies in place (e.g., Israel, United Arab Emirates) or
introduced or passed new laws to that effect (e.g., Egypt, Ghana,
Kenya, Morocco, Nigeria).157 Several countries also published
requests for qualification (Saudi Arabia), floated tenders or
awarded capacity for solar PV projects (e.g., Israel, Malawi, Syria,
Tunisia, United Arab Emirates, Zimbabwe).158

i The decline in oil and gas prices decreased revenue in some countries, while falling energy prices due to lower demand also reduced the incentive to shift to
renewable energy. See endnote 159 for this section.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

Across Africa, as costs During 2020, around 80  plants of 50  MW and larger were
of solar PV (as well as Ground-mounted systems are completed (exceeding 21  GW in combined capacity), and such
batteries) fall, solar PV
is viewed increasingly
growing plants were operating in at least 49  countriesi by year’s end.179
Developers completed at least 30 projects with capacity of
as a means to achieve
a variety of objectives,
ever larger 200 MW or larger.180 In addition to those mentioned earlier, new
facilities included Spain’s 500  MW Nuñez de Balboa, Europe’s
as developers work to
depending on the then-largest solar PV plant, which will serve several clients
further reduce the price
country. These include through PPAs; and India’s 2.2  GWii Bhadla solar park, which
of solar electricity through
improving reliability and became the world’s largest with the completion of an additional
economies of scale. 300 MW.181 Numerous other large projects around the globe were
security of electricity
supply, diversifying the either under way, completed construction or came online.182
energy mix (and either reducing energy imports or increasing If ground-mounted solar PV plants are well-designed and -built,
exports), providing energy access, and meeting rising electricity competition over land can be reduced, and studies have shown
demand while limiting the growth of CO2 emissions.167 (p See that they can help to conserve biodiversity; however, large-scale
Distributed Renewables chapter for more on solar PV for energy ground-mounted plants can cover vast areas and their increasing
access.) Interest in solar energy for hospitals and other critical numbers and scale are raising concerns about potential impacts
facilities also increased as part of national responses to the on ecosystems and landscapes, grid-connection challenges
pandemic.168 Considerable challenges remain, including a lack of and the use of agricultural lands and groundwater supplies (for
suitable financing tools, lack of transparency, ongoing subsidies cleaning).183 As a result, there is increasing interest in alternatives.
for fossil fuels in many countries, social and political unrest in The potential for rooftop solar systems remains enormous, and
some countries, and a heavy reliance on tenders for new capacity many countries have established large rooftop programmes and
combined with a race to the bottom in bid prices.169 Yet, some targets.184 There are also several niche markets that minimise
of the challenges (such as lack of regulatory frameworks for land requirements, including building-integrated PV (BIPV),
independent power producers and weak transmission grids) are which is progressing only slowly, and the emergence of plans
helping to drive commercial and industrial markets for distributed among mainstream auto manufacturers, particularly in Asia,
solar PV.170 to incorporate solar cells into electric vehicles.185 Several BIPV
Several countries across Africa commissioned new capacity in projects were completed during 2020, including in India and the
2020. West Africa’s largest plant (50 MW) came online in Mali, United States; in Europe the sector is driven mainly by France
and Italy, which have targeted support schemes.186
where hydropower accounts for around half of the country’s
installed capacity but provides increasingly variable output The relatively small market for floating solar also continued its
due to hydrological changes.171 Medium-to-large projects were rapid expansion, driven by the limited availability and high costs
commissioned or began construction in several other countries, of land in many places, as well as by design innovations that are
including Egypt, Ethiopia, Ghana, Somalia and South Africa.172 helping to reduce costs.187 Floating projects bring new risks and
The Egyptian government’s gradual removal of subsidies on generally higher costs than ground-mounted facilities, but they
retail electricity prices is increasing the appeal of distributed also provide benefits (e.g., reducing land use for solar projects,
solar PV for residential, commercial and industrial uses.173 At reducing evaporation), especially where land is scarce or where
year’s end, Africa’s top countries for total capacity were South they can be combined with hydropower.188 Economies of scale in
Africa with 3.8  GW (added 1.1  GW), Egypt with around 2 GW project sizes are helping to reduce associated costs.189
and Algeria with 0.5 GW.174
Around the world, favourable economics are raising interest
in distributed rooftop systems, which gained market share
relative to large utility-scale projects, from around 35% in 2019
to around 40% in 2020; this was due mainly to strong growth
in Vietnam, as well as increases in Australia, Germany and the
United States.175 Utility-scale capacity also rose during the year,
and the size and number of large-scale projects continued to
grow.176 (Even the size of distributed systems is trending larger
in many countries.177) The move towards ever-larger ground-
mounted systems is due at least in part to the growing use
of tenders and auctions, and increasingly also to PPAs, as
developers work to further reduce the price of solar electricity
through economies of scale in construction and in operations
and maintenance.178

i Countries that added their first plants of 50 MW and larger in 2020 include Mali and Oman. See endnote 179 for this section.
ii This project totals 2,245 MW (45 MW larger than China’s plant in Quinghai).

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Most floating solar PV projects are sited in Asia, but they can SOLAR PV INDUSTRY
be found in virtually every region.190 By one estimate, more
The solar PV industry rode a rollercoaster in 2020, with shockwaves
than 60 countries had such projects under way or in operation,
of disruption driven largely by the pandemic. In early 2020, China
and total global capacity reached around 2.6  GW in 2020.191
– the dominant producer and global supplier of solar PV cells
Projects that became operational during the year included: in
and modules – closed manufacturing and distribution facilities
the Netherlands, Europe’s largest floating plant (27.4  MW) was
in several provinces.199 As China began reopening by the second
connected to the regional grid; in Ghana, the first section (5 MW)
quarter, further disruption was triggered by pandemic-forced halts
of a floating project was connected to the transmission system in the construction of solar projects in Europe, then the United
of a dam on the Black Volta River; and Chile’s largest floating States and elsewhere; at the same time, widespread economic
project was deployed under the country’s net billing scheme.192 closures reduced electricity demand and created uncertainties
As of early 2021, the largest floating solar plant in operation was over future wholesale prices in many countries, slowing investment
a 181 MW plant off the west coast of Chinese Taipei.193 Interest

MARKET AND INDUSTRY TRENDS

in new projects and the signing of PPAs. 200 By the third quarter,
in moving offshore is rising, despite the additional challenges restrictions were eased and project construction resumed in
associated with currents, waves and salt water.194 many markets. 201 Also, however, starting mid-year, accidents at
Agricultural PV – the use of the same site for both energy and crop polysilicon facilities in Xinjiang, China, as well as a shortage of solar
production – also is a rapidly emerging sector that can address glass, drove up module pricesi. 202 Despite the many challenges,
concerns associated with land use, especially with the growing new actors continued to enter the sector, and competition and
availability of bifacial systems (see later discussion).195 Rising price pressures have motivated investment in technologies across
interest in this sector is also driven by concerns about potential the value chain to improve efficiencies, reduce the levelised cost of
impacts of climate change on crops and livestock.196 While costs energy (LCOE) and improve margins. 203
are higher relative to traditional ground-mounted systems, several In response to COVID-related challenges, several countries
studies have highlighted the advantages, including improved crop supported their domestic solar industries by extending
yields, reduced evaporation, rainwater harvesting (with modules), completion deadlines for awarded capacity or modifying tenders
provision of shade for livestock or crops and protection against (e.g., Germany, France, India), or by extending deadlines for
extreme weather events, prevention of wind and soil erosion, as projects to receive incentives (e.g., the United States). 204 Spain’s
well as additional income for farmers associated with electricity Royal Decree explicitly included solar PV as a key part of the
production.197 Agricultural PV projects have been deployed for national economic recovery, as did Italy’s Relaunch Decree, while
a number of years in Japan, the Republic of Korea and India, national and state governments in India took steps to support
where there are active programmes to encourage deployment, solar PV (and wind power) operations and new investment,
and numerous pilot projects were under way during 2020 across including granting must-run status to insulate generators from
Europe, China, Israel and the United States.198 declining electricity demand. 205 (p See Policy Landscape chapter.)

Agricultural PV
is rapidly emerging as
an option for addressing
concerns related to land-
use as well as for mitigating
the potential impacts of
climate change on crops
and livestock.

i Glass prices rose sharply due to a combination of stagnating supply and the global year-end rush for solar PV installations, combined with rising interest in
larger modules as well as bifacial panels. Stagnating supply resulted from a cap on glass production capacity in China (home to 90% of global production
capacity) in response to past overcapacity in the building industry as well as environmental concerns associated with glass production. By one estimate,
shortages pushed up global solar glass prices more than 70% between July and November 2020. See endnote 202 for this section.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

Disrupted supply chains and other pandemic-related challenges In response to these concerns, the top trade group for the US
also elevated calls in many countries and regions for the creation solar industry began publicly encouraging companies to move
of local supply chains to reduce heavy reliance on a limited their supply chains out of Xinjiang and, in late 2020, announced
number of manufacturers in a single region (Asia, and mostly that it was developing a supply chain traceability protocol. 220 The
China). 206 Governments acted through both trade policy and the leading industry group in Europe called for strengthening the
direct promotion of manufacturing in an attempt to regain some EU solar industrial base to help diversify and improve Europe’s
control over the supply and price of solar products. position in the solar supply chain. 221 The situation has further
highlighted the high dependence of the industry on a relatively
In the United States, tariffs on solar-related imports from China
small number of manufacturers, located in a single region. 222
and several other countries continued throughout 2020. 207 In
November, the on-off exemption for bifacial cells and modules Globally, average module prices fell 8% between late 2019
was again revoked, and new duties were imposed on silicon metal and the end of 2020, from an average USD 0.36 per watt-peak
imports from Bosnia, Herzegovina, Iceland and Kazakhstan. 208 (Wp) to USD  0.33 per Wp.223 This was despite shortage-induced
India extended the safeguard duty on imported solar cells and price increases for both polysilicon and glass, which module
modules for another year and, in December 2020, imposed a manufacturers could not pass along to consumers. 224 By one
estimate, the global benchmark LCOEi of utility-scale solar PV
countervailing duty on solar glass imported from Malaysia. 209 The
declined 4% from the second half of 2019 until early 2020, to
country also promoted increased self-reliance through the “Make
USD 50 per MWh. 225
in India” initiative, and launched tenders and incentives linked
to the development of domestic cell and module manufacturing In 2020, tenders and auctions again saw bid pricesii drop
capacity. 210 to new lows. 226 The lowest bid prices were seen in Portugal,
Abu Dhabi (UAE) (USD  13.5 per MWh) and Qatar (just under
In 2020, the European Commission began working with industry
USD 15.7 per MWh), for the country’s first utility-scale project. 227
to promote and support solar research and development, as
Portugal’s second solar auction, for a total 700 MW under three
well as investment in manufacturing of solar technology along
separate remuneration categories (including a new category for
the whole value chain. 211 The governments of Turkey as well as
several countries in the Middle East also were encouraging the solar-plus-storage), saw a winning bid at USD 13.2 per MWh for
development of domestic industries. 212 In Egypt, for example, a a 10 MW solar PV system plus storageiii. 228
project was launched to develop a sand-to-cell complex to boost
local manufacturing. 213 Several additional countries had measures
in place to encourage domestic production or to penalise the use
of foreign-made products. 214
At the start of 2020, China announced that it would extend duties
on polysilicon from the United States and the Republic of Korea
for five more years to build a self-sufficient domestic industry. 215
China accounted for about 80% of global polysilicon production as
of 2020, up from 26% in 2010. 216
More than 45% of the world’s polysilicon is produced at
facilities in China’s Xinjiang province, with producers drawn to
the region by low costs of labour and energy (mostly coal-fired
generation). 217 In late 2020, concerns arose among investors and
others across the industry regarding allegations of the use of
forced labour for polysilicon production in Xinjiang. 218 Although
the Chinese government and China’s solar industry trade group
have denied these claims, solar industry groups in the United
States and Europe have called for increased transparency and
the upholding of human rights throughout the global supply
chain, and concerns have been raised in Australia and Japan
as well. 219

i Energy costs vary widely according to solar resource, regulatory and fiscal framework, trade policies, project size, customer type, the costs of capital, land and
labour, exchange rates and other local influences. Distributed rooftop solar PV remains more expensive than large-scale solar PV but has followed similar price
trajectories, and is competitive with (or less expensive than) retail electricity prices in many locations. In addition, price is not equal to cost and is influenced
by several factors unrelated to the costs of production including government support policies, competing technologies, level of competition, price expectations
and end-user tastes. See endnote 225 for this section.
ii Note that bid levels do not necessarily equate with costs. Bid levels differ from market to market due to varying auction designs, policies and risks, among other factors.
iii Under the auction’s rules, Portugal’s winning projects in the Fixed Premium for Flexibility remuneration modality are required to build energy storage capacity
accounting for at least 20% of tendered solar capacity to address variability, provide flexibility and other grid regulation services, and to compensate the net-
work for peaking power prices in the spot market for 15 years. See endnote 228 for this section.

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India set its own low bid record (USD 26.9 per MWh) in a Gujarat Mexico, with record-low prices for a solar PV plant (USD 15 per
auction, following a continuous decline in bid prices across the MWh) and a solar-plus-storage facility (USD 21 per MWh), which
country throughout the year. 229 Average tariffs awarded during together will replace a natural gas steam planti due to be retired
2020 were below those in 2019 and among the lowest in the in 2022. 238 In Europe, PPA prices declined slightly, at least in the
world, driven by a mix of government support policies, bidder fourth quarter, with the lowest price reported in Spain (EUR 35, or
assumptions about future equipment prices, and the participation USD 43, per MWh). 239 Prices also were low in Germany, Denmark
of international developers with access to low-cost financing. 230 and Sweden, due at least in part to high levels of renewable
Falling bids in tenders and auctions have prompted efforts to energy penetration, which depressed electricity market prices. 240
renegotiate prices under existing PPAs, an additional challenge to Global shipments of cells and modules were down in the first
the industry. In India, attempts to renegotiate prices in several states half of the year, but for all of 2020 they increased 7% relative to
have left institutions and investors reluctant to finance projects 2019. 241 Of the estimated 131.7 GW of cell/module volume shipped
under government PPAs. 231 In South Africa, the state-owned utility in 2020, around 86% was shipped by Chinese firms (including

MARKET AND INDUSTRY TRENDS

Eskom announced plans to renegotiate PPAs with renewable their facilities in Southeast Asia). 242 The top 10  companies
independent power producers from the first two bid rounds of the accounted for 71% of shipments, and all were Chinese based
national procurement programme. 232 Similar renegotiation efforts with the exception of US-based First Solar (with 4%). 243 First
were under way in Saudi Arabia during 2020. 233 Solar continued to dominate global thin film shipments, which
Outside of locations with a low cost of finance and excellent accounted for 5% of the year’s total cell/module shipments. 244
solar resources, such as Abu Dhabi or Qatar, a broad range of Despite the challenges in 2020, many companies achieved major
experts believe that very low bids, such as Portugal’s winning increases in production capacity during the year. Most of the
price, often are driven by extreme competition and the desire expansions occurred in China, but there was activity elsewhere
to access grid connections and markets. 234 In such instances, as well. 245 For example, Mexican solar module manufacturer
low bids are thought to be possible only because firms make Solarever opened the first module assembly line (500  MW per
overly optimistic assumptions about future cost reductions year) of three at its third facility in Mexico, and Turkey’s Kalyon
(ahead of project construction) or plan for merchant sales at facility (500  MW per year) came online, with processes for
the end of the contract period, betting on the merchant price manufacturing ingots, wafers, cells and modules. 246
(until the end of project lifetime) to supplement revenues. 235 In By the end of 2020, global crystalline and thin film commercial
2020, manufacturers and developers across much of the solar
cell production and module assembly capacitiesii were estimated
PV industry experienced low margins. 236
to be 203.7 GW (cell) and 248.6 GW (module), up 33% and 34%
Direct bilateral PPA prices saw mixed developments during respectively over 2019. 247 An estimated 66% of commercialiii cell
the year. In North America, average PPA prices rose throughout production capacity and 60% of module assembly capacity was
2020, after falling continuously since early 2018, due to grid located in China; the United States and Europe each were home
connection delays, permitting challenges, the step-down of to around 1% of cell capacity and 2% of module capacity, and
the federal investment tax credit as of January 2020, as well as most of the rest was elsewhere in Asia (particularly Malaysia and
pandemic-related challenges. 237 An exception was seen in New Vietnam) with much of that owned by Chinese firms. 248

Manufacturers
and developers
across much of the solar
PV industry experienced
low margins in 2020.

i Four additional solar PV-plus-storage plants in New Mexico, due for commissioning in mid-2022, will replace a large coal-fired generator in the US state.
The utility will pay in the range of USD 18-25 per MWh. See endnote 238 for this section.
ii Cell capacity is MW or GW of semiconductor (cell) capacity available to a manufacturer; module assembly capacity is that available to assemble cells into modules.
iii Commercial capacity is not the same as nameplate capacity of the equipment, which is the stated capacity under ideal conditions. P. Mints, SPV March
Research, The Solar Flare, 26 February 2021, p. 7.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

Throughout the year, manufacturers announced plans to further announced that it would end cell production in 2021, due to margin
increase production capacity in 2021 and beyond. 249 Most planned constraints. 259 SunPower (US), another long-lived manufacturer
expansion was by Chinese producers of polysilicon, wafers, cells of cells and modules, spun off its panel manufacturing and sales
and modules. 250 Tongwei Solar, for example, revealed plans to to Maxeon (Singapore) and, in early 2021, announced plans to
expand polysilicon production and to raise its cell production close its remaining US panel manufacturing facility to focus on
capacity from 20 GW to 30 GW in 2021, with a goal of expanding solar and battery sales and services. 260 First Solar (US) sold its
to 60 GW by 2022. 251 operation and maintenance business in North America due to
Elsewhere, several European manufacturers looking to regain falling margins to focus on module manufacturing. 261
market share opened or announced plans for new facilities Also in 2020, the leading US residential solar, battery storage and
in Europe. 252 For example, Ecosolifer AG (Hungary) started energy services company, Sunrun, acquired Vivent (US), a leading
commercial production of heterojunctioni (HJT) cells at a 100 MW competitor, representing the largest rooftop solar consolidation
factory, the Hevel Group (Russian Federation) launched HJT yet. 262 In August, solar manufacturer Hanwha Q Cells (Republic
cell production, and Meyer-Burger Technology (Switzerland) of Korea) acquired energy storage solutions company Growing
announced that it would shift from merely selling its production Energy Labs, Inc. (GELI, US) to expand into the US solar-plus-
equipment to using its technology to manufacture HJT cells and storage market. 263
modules, with plans to scale up to 5  GW module production As in the wind power industry, new actors including fossil
capacity in Germany by 2026. 253 In Africa, Mondragon Assembly fuel companies continued to enter the solar sector. 264 Several
(Spain) provided assembly lines for new module production
European oil and gas companies are acquiring existing solar PV
facilities in Algeria and Egypt. 254
projects as investments or are constructing and operating new
The year also saw consolidation among manufacturers and projects. 265 In 2020, BP announced a partnership with Chinese
installers, driven by pandemic-related challenges as well as longer- module manufacturer JinkoSolar to provide clean energy for
term concerns. In China, the pandemic resulted in the closure of commercial and industrial customers in China, and Spanish gas
several relatively small solar manufacturers, relieving the central grid operator Enagás signed an agreement with Anpere Energy
government of its plans to eliminate them. 255 The largest solar (Spain) to jointly produce hydrogen with solar PV, with plans to
PV manufacturer to fall in 2020, Yingli (China), was the world’s inject hydrogen into Spain’s gas network. 266
biggest panel maker as recently as 2013. 256 Aggressive borrowing Other fossil fuel companies are engaging in research and
alongside a plunge in solar prices led to years of losses and rising
development (R&D) or moving into production. US oil and gas
debt; the company entered restructuring in 2020 and was brought
company Hunt Consolidated announced that its R&D work with
under government control and renamed “New Yingli”. 257
perovskite cells had achieved efficiency performance levels of
In addition, Panasonic (Japan) and Tesla (US) ended their 18%; as of late 2020, the company owned the largest portfolio
partnership and, in early 2021, Panasonic, which entered the of perovskite solar patents in the United States and one of the
solar sector in 2008, announced plans to cease all production largest in the world. 267 In India, state-owned Coal India (the
of cells and modules by 2022, due to the pandemic and highly world’s largest coal producer) received approval in December
competitive pricing. 258 A subsidiary of Inventec (Chinese Taipei) to set up an integrated solar wafer manufacturing facility. 268

i HJT combines advantages of conventional crystalline silicon solar cells with good absorption and other benefits of amorphous silicon thin film technology.

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 03

Competition and price pressures have encouraged investment Researchers also continued working to circumvent the theoretical
in solar PV technologies across the entire value chain, efficiency limits of silicon-based solar cells by stacking cells of
particularly in solar cells and modules, to further improve different types and developing more efficient cell technologies. 281
efficiencies and reduce the LCOE. 269 As in previous years, several Perovskitesiv, in tandem with crystalline silicon or a thin film base,
new record cell and module efficiencies were achieved during continued to attract substantial research funding in an effort
2020. 270 Monocrystallinei cell technology – which lost its lead to to move closer to commercialisation. 282 Oxford PV (UK) set a
multicrystalline in 2002 and retook it in 2019 – continued to gain new record for perovskite-silicon tandem cell efficiency (29.5%)
market share (up 26 percentage points to 88% of shipments), and started ramping up production at its facility in Germany. 283
and it accounted for all expansions of silicon ingot crystallisation Saule Technologies (Poland) began printing perovskite cells
capacity in 2020. 271 As the cost differential between technologies with inkjet printers, with plans to supply a Swedish construction
has fallen, a higher priority has been placed on the higher company (Skanska Group) in 2021 for use on building façades. 284
efficiency potential of monocrystalline technology. 272 Researchers continued to focus on a number of challenges,

MARKET AND INDUSTRY TRENDS

Economics also have played a role in driving ever larger wafers including addressing the long-term stability issues and lead
and modules. 273 Manufacturers started enlarging wafers (used to content of perovskites, developing new cell designs and
make solar cells) around 2017 to optimise costs, and because it encapsulation strategies, and bringing down costs. 285
was the easiest way to increase the power of modules. 274 By 2020, Improvements in cell technology and module design have
most of the sector was increasing sizes again and, by year’s end, enabled the development of modules with higher power
most major module manufacturers were preparing to produce ratings. 286 Manufacturers were pushing 400  W in 2019, and
panels based on larger wafers. 275 The rapid shift has left many several introduced modules with ratings of 500  W and higher
smaller companies behind and has raised manufacturing costs during 2020. 287 Raising the power rating increases electricity
throughout the supply chain. 276 As a result, by early 2021 Trina output per module, thereby reducing the number needed for a
and several other large module manufacturers were working to project, reducing space requirements and associated shipping,
standardise wafer sizing. 277 land, installation and other costs. 288
Demand for higher-efficiency modules helped to steer a shift Interest continued to increase in bifacial modules, which
towards passivated emitter rear cell (PERC)ii technology, which capture light on both sides, and offer potential gains in output
accounted for the majority of cell shipments in 2020. 278 Yet, while and thus a lower LCOE. 289 Power gains range from 5% to as
monocrystalline PERC has been the focus of most manufacturing much as 30% depending on cell technology, system design
capacity expansions in recent years, the industry is already and location. 290 Uncertainties about the performance of bifacial
looking beyond PERC, with the first large manufacturers systems are falling away as the increasing number of systems
starting to produce new cell technologies that promise even in operation demonstrates the benefits. 291 However, a growing
higher efficiencies and output and offer the potential to improve demand for bifacial modules, which generally are made with
margins. 279 Passivated contact cellsiii (TOPCon) might be the next two glass panes (unlike most traditional modules), contributed
evolutionary step, requiring the upgrading of PERC production to a shortage in solar glass supply, helping to push up prices in
lines, while HJT cell technology (which requires completely the second half of 2019. 292
new production lines) also offers higher efficiencies and can be
manufactured at low temperatures and with fewer production
steps than other high-efficiency cell technologies. 280

The industry is rapidly

shifting to

new cell
technologies
to increase cell efficiencies
and output and to improve
margins.

i Crystalline technologies account for nearly all cell production. Historically, monocrystalline cells have been more expensive but also more efficient
(more power per unit of area) than multi- or poly-crystalline cells, which are made of multi-faceted or multiple crystals. See endnote 271 for this section.
ii PERC is a technique that reflects solar rays to the rear of the solar cell (rather than being absorbed into the module), thereby ensuring increased efficiency
as well as improved performance in low-light environments.
iii Tunnel-oxide passivated contact (TOPCon) cells adapt a sophisticated passivation scheme to advance cell architectures for higher efficiencies.
See endnote 280 for this section.
iv Perovskite solar cells include perovskite (crystal) structured compounds that are simple to manufacture, can be made at low temperatures, and are
expected to be relatively inexpensive to produce. Perovskites can be printed onto substrates of other materials or made as thin sheets. They have achieved
considerable efficiency improvements in laboratories. See endnote 282 for this section.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

The scale of manufacturing and demand is such that solar PV the guaranteed supply of panel waste that is needed to make
has become the major driver of growth in polysilicon production recycling economical.302 As of 2020, only the EU and the US states
and accounts for a large and growing share of global demand for of New York and Washington mandated solar panel recycling.303
glass and other materials and resources. 293 As with other energy Japan required facilities of 10  kW or larger (installed under the
technologies and electronics, solar panels are resource intensive, FIT system) to pay into a decommissioning fund for 10  years
relying heavily on aluminium, copper and silver, and on smaller after 2022; some Australian states had bans on electronic waste
amounts of minerals such as zinc, indium and lead. 294 Between in landfills (and South Africa has a similar ban, due to take
2010 and 2020, solar PV use of silver more than doubled, with the effect in August 2021); and other countries were considering or
industry’s share of global demand rising from 5.7% to more than in the process of developing requirements. 304
11%, even as silver use per cell declined 80%. 295
As of early 2021, only Europe had a single treatment line (in
Once produced, solar panels have technical lifetimes of 25-30 France) that is dedicated to recycling of crystalline silicon
years or longer. 296 Nonetheless many solar plants are already panels. 305 Other facilities in Europe (e.g., in Belgium, Germany,
being repoweredi, and the volume of decommissioned panels Italy and Spain) have integrated the treatment of silicon-based
in the coming decade is expected to be large. 297 Repowering is solar panels into existing treatment lines (for laminated flat
due mainly to ageing components, particularly inverters, but the glass products, for example). 306 A handful of facilities operate
opportunity to increase output per installation (made possible by in other countries: Japan has at least two facilities; India has a
rapid technology advances and falling prices) is leading many pilot recycling plant; and, in the United States, a small number
developers to replace panels much earlier. 298 of industry-driven facilities can handle parts of panels, and
There is a growing market for second-hand panels (which might thin film manufacturer First Solar has in-house capabilities. 307
or might not be recycled later), but most decommissioned, In Australia, Reclaim PV is testing a pyrolysis process and
damaged or faulty solar panels go to existing waste treatment or starting to ramp up a nationwide collection network, and other
recycling facilities that do not yet recover many of the materials companies in Australia are working on recycling. 308 In China,
that represent some of their potential value (e.g., silver, copper leading manufacturers have begun to research options. 309
and silicon) and environmental impact (e.g., lead). 299 Nearly On a related note, in 2020 the Republic of Korea introduced
95% of a solar panel is recyclable but, for now, many materials carbon footprint rules for solar modules – new projects will be
that could be reclaimed do not cover the costs of recycling. 300 prioritised according to their life-cycle emissions; the rules are
It is a matter of economics and volume: finding markets for the similar to those applied in Franceii for large-scale tenders. 310
reclaimed materials and scaling up treatment lines to drive down In addition, several companies from across the solar PV value
per-unit costs, both of which require a relatively high volume of chain launched the Ultra Low-Carbon Solar Alliance in 2020,
solar panels that have reached the end of life. 301 pledging to build market awareness and to accelerate the
Mandates on producers to collect and recycle panels (such deployment of solar PV modules with lower embodied carbon to
as takeback legislation), and required financing, can create reduce the carbon footprint of solar systems. 311

i In the United States, for example, utility-scale projects generally pay for themselves in about seven years; repowering the project resets the clock on
the federal investment tax credit. See endnote 297 for this section.
ii France’s tenders for large-scale solar PV plants prioritise projects using modules with low carbon footprints.

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CONCENTRATING SOLAR THERMAL

KEY FACTS POWER (CSP)
CSP MARKETS
  CSP markets grew slowly in 2020 as Global CSPi capacity grew just 1.6% in 2020 to 6.2 GW,
a result of increasing cost competition with a single 100 MW parabolic trough project coming
from solar PV, the expiry of CSP incentive online in China.1 This was down from the 600 MW commissioned
programmes and operational issues at in 2019 and was, along with 2017, the lowest annual market
existing facilities. Spain and the United growth in over a decade. 2 (p See Figure 29 and Reference Table
States, the market leaders in cumulative R16 in GSR 2021 Data Pack.) Reduced market growth comes on
installed CSP capacity, have not added the back of several challenges faced by the CSP sector in recent

MARKET AND INDUSTRY TRENDS

new capacity in seven and five years, years, including increasing cost competition from solar PV, the
respectively. expiry of CSP incentive programmes and a range of operational
issues at existing facilities. 3 Market growth also was impacted
  More than 1 GW of new capacity was by construction delays and stoppages in China, India and Chile.4
under construction in 2020 in the United
More than 1 GW of CSP projects was under construction during
Arab Emirates, China, Chile and India,
2020 in the United Arab Emirates, China, Chile and India,
although construction did not begin on any
although no new projects commenced construction during the
new projects. China was the only country
year. 5 This was the seventh consecutive year in which no new
to add new capacity during the year. CSP capacity came online in Spain, still the market leader in
  CSP costs fell 50% during the 2010s, cumulative operating CSP capacity. The United States, which
ranks second in cumulative capacity, has seen no new capacity
and there are several examples of CSP
additions in five years.6
facilities with thermal energy storage
co-located with solar PV to lower costs The majority of projects under construction during 2020 were
and increase capacity factors. based on parabolic trough technology.7 At year’s end, the plants
under construction worldwide included just over 1 GW of trough
systems, just under 0.3  GW of tower systems and a 14  MW
Fresnel system. 8 With the exception of two hybrid CSP-natural
gas plants,ii all of these plants are to include thermal energy
storage (TES). 9

i CSP is also known as solar thermal electricity (STE).

ii These hybrid plants are integrated solar combined-cycle (ISCC) facilities, hybrid plants that use both solar energy and natural gas to produce electricity.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

FIGURE 29.
Concentrating Solar Thermal Power Global Capacity, by Country and Region, 2010-2020

Gigawatts
7
China
was the only
6.1 6.2 country to add
6 new CSP
5.5 capacity in
4.8 2020.
5 4.7
4.6
4.3
Rest of World
4
3.4 Spain
United States
3 2.5

2
1.7
1.2
1

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: See endnote 2 for this section.

In China, the 100 MW CSNP Royal Tech Urat project commenced

operations in January 2020, bringing the country’s total installed The world's largest
capacity to 520  MW.10 The project, based on parabolic trough
technology, incorporates 10 hours or around 1,000  MWhi of
CSP project,
thermal storage based on molten salts, and is the largest of the at 700 MW, was under
country’s 10 operational CSP facilities.11 A number of CSP plants construction in the United
were under construction in China during 2020, although several Arab Emirates.
were delayed or taken over by new owners and contractors due
to a range of implementation challenges.12
In the United Arab Emirates, construction continued on the
Mohammed bin Rashid Al Maktoum Solar Park, consisting of a
600 MW parabolic trough facility (11 hours; 6,600 MWh), and a
100 MW tower facility (15 hours; 1,500 MWh).13 A key milestone
was achieved with the commissioning of the 262-metre solar
tower, the highest in the world.14 Once operational, the facility will
bring cumulative CSP capacity in the United Arab Emirates to
800 MW.15 Elsewhere in the Middle East, construction continued
on the 50 MW Duba 1 Integrated Solar Combined Cycle project
in Saudi Arabia.16
Several CSP facilities totalling around 300 MW were being built
in India in recent years, although some projects faced protracted
delays, and anticipated completion dates remained unclear.17 The
country operated 225 MW of CSP capacity as of end-2020.18
Chile was the only other country with CSP capacity under
construction during the year, in the form of the 110  MW Cerro
Dominador tower project (17.5  hours; 1,925  MWh).19 The plant,
which will be the first commercial CSP facility in Latin America

i The total TES capacity in MWh is derived from the sum of the individual storage capacities of each CSP facility with TES operational at the end of 2019. Individual
TES capacities are calculated by multiplying the reported hours of storage for each facility by their corresponding rated (or net) power capacity in MW.

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 03

and is expected to be operational in 2021, achieved several At the end of 2020, an estimated 21  GWh of thermal energy
construction milestones in 2020 including installation of the storage, based almost entirely on molten saltsi, was operating
220-metre solar tower and the commencement of salt melting. 20 in conjunction with CSP plants across five continents. 28 (p See
While no CSP capacity was added on the African continent, the Figure 30.) Of the 24  CSP plants completed globally since the
800  MW Midelt CSP project in Morocco was approaching the end of 2014, only two do not incorporate TES: an integrated
construction phase, and the tendering process for Zambia’s first solar combined-cycle (ISCC) facility in Saudi Arabia and the
CSP project, a 200 MW parabolic trough facility, was completed Megalim plant in Israel. 29 TES capacity, installed mainly alongside
CSP, represents a significant proportion of global non-pumped
and contractors were subsequently appointed to carry out the
hydropower energy storage capacity: while global installed
project’s civil construction works. 21 In neighbouring Botswana, a
new integrated resource plan released in 2020 targets 200 MW solar PV capacity is more than 100 times greater than CSP, the
of CSP capacity by 2026. 22 quantity of TES installed at CSP facilities around the world is
almost double that of utility-scale batteries. 30

MARKET AND INDUSTRY TRENDS

For cumulative capacity in operation, Spain remained the global
leader with 2.3 GW at the end of 2020. 23 With no new capacity
additions in seven years, Spain’s share of global CSP capacity
in operation declined from a high of nearly 80% in 2012 to just
under 40% by the end of 2020. 24 However, production from the
existing CSP fleet has increased in recent years as a result of
operational improvements, and a draft energy and climate plan
released by the Spanish government during 2020 targets the
procurement of 600 MW of new CSP capacity by 2025. 25 There
were also plans to enhance the performance of several Spanish
CSP plants by retrofitting them with energy storage. 26 Following
Spain in cumulative CSP capacity was the United States with just
over 1.6 GW of commercially operational CSP, or just under 30%
of global capacity. 27

i More than 95% of global TES capacity in operation on CSP plants is based on molten salt technology. The remainder use steam-based storage.

FIGURE 30.
Thermal Energy Storage Global Capacity and Annual Additions, 2010-2020

Gigawatt-hours 21.1 21.1

Gigawatt-
World Total
20.1 +1.0
20 hours
+3.4
16.6

+4.9 Annual additions

15 11.7
+0.5 Previous year‘s
11.2 capacity
10.5 +0.7
+0.7
9.8 9.8
10
+3.3

6. 5
+2.0
5
4.5
2.0 +2.6
+1.2

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: See endnote 28 for this section.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

CSP INDUSTRY For example, the Cerro

After several years of diversification of the CSP industry beyond

Dominador plant in Chile
is being built alongside Several
CSP plants
Spain and the United States to markets across Africa, the Middle
an existing 100  MW
East and Asia, the majority of construction activity in the sector
solar PV plant. 39 Other
was concentrated in the United Arab Emirates and China. CSP are being located
developments aim to
projects that either entered operations or were under construction alongside solar PV
integrate CSP, TES and
during 2020 involved lead developers and investors from Saudi facilities to lower overall
solar PV more closely:
Arabia, China, India and the United States. 31 Contractors were costs and boost capacity
in Morocco, the Midelt
based in China, Spain, the United States and India, with Chinese factors.
plant will be the first to
companies involved in almost half of the completed or active
incorporate an electric
projects. 32 By contrast, before 2015 most CSP companies hailed
heater to allow for
from the United States and Spain. 33
storage of energy from the adjacent solar PV facility using the
The Saudi company ACWA Power remained the leading CSP molten salt storage system.40 The hybridisation of CSP with
project developer in 2020, with more than 700  MW of projects solar PV reflects a shift away from direct competition between
under construction. 34 Other notable developers, investors or CSP and other generation resources to a more integrated and
owners of CSP plants that either entered operations or were under complementary approach that emphasises the unique benefits
construction during the year included Royal Tech (China), EIG of CSP systems that include TES, such as long-duration energy
Global Partners (United States) and at least six other developers storage.41
from around the world. 35 Some of the leading companies involved
In some cases, older CSP plants without energy storage are
in the engineering, procurement and construction of CSP facilities
being retrofitted with TES to greatly improve their overall
included Abengoa (Spain), Acciona (Spain), Brightsource (US),
functionality and economics. Some estimates indicate that
China Shipbuilding New Power Company (China) and Shanghai
the costs of implementing new TES at existing CSP plants are
Electric (China). 36
much lower than the costs of implementing equivalent battery
During the decade prior to 2020, CSP costs decreased 68%, capacity with existing solar PV.42
the largest decline for all renewable energy technologies with
Several research and development activities focused on CSP
the exception of solar PV, which experienced a more than 80%
and TES were under way in 2020. Areas of development
cost decline over the same period. 37 CSP costs have improved
included the integration of CSP and TES with other generation
as a result of multiple factors, including technological innovation,
and storage technologies, the improved reliability of mechanical
improved supply chain competitiveness, as well as increased
systems, the use of alternative heat transfer mediums and the
growth in CSP capacity in high irradiance regions which, along
application of more efficient power conversion cycles.43 The US
with increased TES capacity, has boosted the overall capacity Department of Energy announced USD 39 million in funding to
factor of the global CSP fleet. 38 support a pilot CSP project that aims to demonstrate improved
In many cases CSP and TES capacity are co-located with efficiencies through the application of a supercritical carbon
solar PV capacity to lower costs and increase capacity values. dioxide power cycle.44

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 03

SOLAR THERMAL HEATING

KEY FACTS The global solar thermal market continued a gradual
decline in 2020, with an estimated 25.2  GWth of
capacity added i worldwide, down 3.6% from 26.1 GWth
  An estimated 25.2 GWth of new solar thermal in 2019.1 Most large solar thermal markets were constrained by
capacity came online in 2020, with China, challenges associated with COVID-19, such as pandemic-related
Turkey, India, Brazil and the United States restrictions and postponed investment decisions by commercial
leading in new installations. clients, including industries and hotels. However, the reduction
was smaller than expected due to various stabilising factors.
  Residential, commercial and industrial clients
In most of the largest solar thermal markets, continuous business
in at least 134 countries operated 501 GWth ,

MARKET AND INDUSTRY TRENDS

in the construction sector during the pandemic helped maintain
enough to provide heat equivalent to the
a steady demand for systems. In many countries, the effects of
energy content of 239 million barrels of oil. trade and travel restrictions on the solar thermal market were
  China and Germany took the lead from offset at least partly by higher demand from residential owners
who spent more time at home and invested in infrastructure
Denmark in solar district heating, thanks
improvements. 2 In markets that depend strongly on subsidies,
to policy support in both countries.
changes in policy support in 2020 had a much greater influence
  A new generation of manufacturers of (positive or negative) on solar thermal demand than did the
pandemic. 3
innovative concentrating collectors
unveiled the first demonstration or By the end of 2020, millions of residential, commercial and
commercial projects. industrial clients in at least 134 countries were benefiting
from solar heating and cooling systems.4 The total operating
capacity for glazed (flat plate and vacuum tube) and unglazed
collectors (used mainly for heating swimming pools) reached an
estimated 501 GWth by year’s end, up 5% from 478 GWth in 2019ii. 5
(p See Figure 31.) These collector types provided around
407 terawatt-hours (1,465 petajoules) of heat annually, equivalent
to the energy content of 239 million barrels of oil.6

i Added capacity or new additions in this section are gross additions, whereas total capacity counts only net additions (replacement of decommissioned
systems is not included).
ii Annual additions for China in 2019 were revised (see endnote 1 for this section), and the assumptions for estimating new solar thermal capacity additions
beyond the largest 20 markets were adapted for 2019 and 2020 (see endnote 5 for this section), which also had an impact on estimates for total global capacity.

137
 RENEWABLES 2021 GLOBAL STATUS REPORT

FIGURE 31.
Solar Water Heating Collectors Global Capacity, 2010-2020

501
Gigawatts-thermal
501
500 482 478 World
472
456 Gigawatts- Total
435 thermal
409
400
374

330
Glazed
300 285 collectors
Unglazed
242 collectors

200

100

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note: Data are for glazed and unglazed solar water collectors and do not include concentrating, air or hybrid collectors. The drop in 2019 was caused by
revised annual additions for China in 2019 (see endnote 1 for this section) and new assumptions for projecting total capacity in operation for 2019 and 2020
(see endnote 5 for this section).
Source: IEA SHC. See endnote 5 for this section.

In addition to the three main types of collectors, other technologies In China, the solar thermal
such as hybrid, concentrating and air collectors are available to
meet specific heat needs. Because annual additions of these
market ended 2020 on
a high note, with sales Germany’s
technologies are small, they are not yet included in global and
national capacity statistics. By the end of 2020, hybrid – or solar
in the second half of the
year nearly making up for
green heating
photovoltaic-thermal (PV-T) – technologies provided 635 MWth the delays in construction policy
of thermal capacity (and 232 MW of electric power capacity) for activity related to COVID-
helped drive a 26%
space and water heating.7 In addition, 566 MWth of concentrating 19 during the first six
increase in sales in 2020.
solar thermal capacity provided hot water or steam for industrial months.14 Installations
and commercial customers at year’s end. 8 Around 1 GWth of air in 2020 totalled 18 GWth
collectors for drying and space heating was in operation in 2019 (25.7 million square metres
(latest data available). 9 (m2) of collector area),
resulting in a decline of only 3% from 2019 (compared with a 21%
The leading countries for new glazed and unglazed installations
drop in 2019 relative to 2018).15 At year’s end, China's operating
in 2020 were again China, Turkey, India, Brazil, the United States,
capacity was 364 GWth, or 67% of the global capacity in operation.16
Germany and Australia.10 (p See Figure 32.) China dominated
the market, accounting for 71% of new global sales, followed by The large project market in Chinai – covering a wide range of
Turkey and India (5% each).11 Most of the top 20  countries for customer groups including industry, large-scale residential
solar thermal installations (glazed and unglazed collectors) in projects, agriculture, and public institutions such as hospitals and
2019 remained on the list in 2020; the exceptions were Denmark, schools – remained stable and contributed to nearly three-quarters
the State of Palestine and Switzerland, which were replaced in (74%) of total sales in 2020, while the market for small retail solar
the rankings by the Netherlands, Morocco and Portugal.12 The water heaters made up the remaining 26%.17 Within the large
top 20 countries accounted for an estimated 96% of the global project market, the most dynamic growth was in the solar space
market in 2020.13 heating segment, totalling 1.7  GWth of newly added capacity, or
10% of all new installations.18 Prior to 2020, a total of only around
0.6 GWth of solar space heating projects was put online. 19

i Chinese statistics differ between standardised small residential solar water heaters and “engineered” solar thermal solutions, which are called the “large
project market” in the GSR and refer to larger systems used in, for example, industry, agriculture, public institutions and residential housing projects.

138
 03

FIGURE 32.
Solar Water Heating Collector Additions, Top 20 Countries for Capacity Added, 2020
Gigawatts-thermal

20

-3%

1.5 Unglazed
15
+2% collectors

1.2 -10% Glazed – evacuated

tube collectors

MARKET AND INDUSTRY TRENDS

+7%
Glazed – flat plate
10
0.9 collectors

+26%
0.6
-16%
5 -3%
-2% -10%
-8% 0
0.3 -16% +7%
+7% +1%
-44% -19%
1.5 -17% -6% -19%
0
na

M ia
er s

Po co
o

G el
Au y

ria

M us
s
nd

Tu l
P n
St l

he ly

a
ia
ey

ga
i
e
an

nd
l

ec
te raz

ic

ric

si
ai
ra

ra

ta
i

at

r
oc
Ch

rk

st
So ola

ni
ex

rtu
Sp

yp
In

re
m

st

Is

I
rla
Af
B

Au
Tu

or
C
h
d
G

ut

et
i
Un

Note: Additions represent gross capacity added. For the Netherlands, the shares of flat plate and vacuum tube collectors were estimated based on actual
shares in 2019. For Morocco, the share of collector types was not available.
Source: See endnote 10 for this section.

Although vacuum tube collectors still accounted for 73% of India's demand for
China’s newly installed capacity, the market continued to glazed collectors fell Demand from
transition from vacuum tubes to flat plate systems. 20 China’s 10% in 2020 to 1.16  GWth homeowners for
market for new vacuum tube collectors contracted 6% in 2020
(to 13.1  GWth), while new flat plate collector area grew 6% (to
(1.66  million  m2) due
to the restrictions on solar water
4.9  GWth). 21 Sales of flat plate collectors have been driven by
building codes mandating the use of solar thermal systems (or
production, sales and
installation during the
heaters
increased in Turkey,
heat pumps) in new construction and major renovations as a country’s full lockdowns
India and Brazil during
means to reduce local air pollution. 22 These regulations have in April and May and
increased the demand for both façade- and balcony-integrated partial lockdowns over
the pandemic.
applications, where flat plate collectors have been the preferred several months. 27 Even
solution. 23 so, India again ranked
Turkey’s solar thermal market, the second largest for new third for annual additions. As in Turkey, Indian solar thermal
sales worldwide, expanded slightly (up 2%) in 2020, following manufacturers reported opposing trends: for example,
stagnating sales the previous year, resulting in 1.35 GWth of newly precautionary health measures, such as more frequent hot baths,
installed capacity. 24 The 18.4  GWth of solar thermal capacity in increased the demand for solar water heaters, partly offsetting
operation at year’s end accounted for 4% of the global total. 25 the negative impact of the pandemic. 28
The pandemic affected Turkey’s market in two opposing ways. The market share of vacuum tube collectors in India grew to
In the residential sector, sales of solar water heaters increased as 88% of newly installed capacity in 2020 (up from 85% in 2019),
Turkish residents moved away from urban areas and apartment mainly because flat plate collector sales declined more strongly
buildings to villages and individual houses, boosting the (down 24%) due to higher prices resulting from rising material
renovation business and the prefabricated housing market and costs. 29 Furthermore, there was a decrease in the number of
triggering solar thermal sales. Meanwhile, sales of solar thermal public tenders that mandated systems certified by the Bureau of
systems for hotels and resorts declined. 26 Indian Standards, which so far can be fulfilled only by flat plate
collectors. 30

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 RENEWABLES 2021 GLOBAL STATUS REPORT

Karnataka state again dominated capacity additions, representing

nearly 65% of India’s total market (up from 50% in 2019), followed
by Gujarat and Maharashtra. 31 The driving force in Karnataka was
again a strict policy mandating use of the systems, overseen by
local electric utilities that deny grid access to households not
equipped with a solar water heater. 32
Brazil continued its growth trajectory, adding 992 MWth (up 7%)
of solar thermal capacity in 2020 despite COVID-19 worries,
following a 6% increase in 2019. 33 The pandemic caused demand
to fall in the first six months of the year, as commercial clients put
plans on hold and wholesalers closed their doors. 34 Sales then
rose in the second half of the year, a development attributed in
part to the recovery of the residential sector as people spent more
time at home and invested in infrastructure improvements (such
as solar pool heating and solar hot water systems); commercial
clients also took advantage of the lower interest rates available for
financing to identify energy-saving solutions that could give them
a competitive edge. 35
For the first time, Brazil's unglazed collector market, aimed
mainly at swimming pool heating, pulled ahead of the US market,
the long-term leader for this type of collector. 36 Brazil added
498  MWth of new unglazed capacity, followed by the United Preliminary numbers for glazed collectors suggest a decline
States (473 MWth) and Australia (266 MWth). 37 in 2020 (down 7%), with new installations totalling around
114  MWth .48 Sales of glazed collectors contracted, while heat
Brazil’s strong market in 2020 resulted almost solely from the
pumps gained a larger share of the residential new-build market;
competitiveness of domestically manufactured solar thermal
in addition, restrictions on the number of workers allowed at
systems compared to other water heating options, as well as
worksites during several months of the pandemic affected solar
the ongoing reduction in value-added tax (VAT), enjoyed by
thermal salesi.49
solar thermal products but not other water heating options. 38
Meanwhile, the implementation of two previously announced The European Union (EU-27) remained the second largest
policy support programmes was temporarily postponed regional market after Asia in 2020. 50 However, additions
because of the pandemic. 39 The federal government delayed (estimated at 1.4  GWth) were down 15% from 2019.51 The total
the launch of the new social housing programme Casa Verde capacity in operation in Europe at the end of 2020 was an
e Amarela, which was to succeed Minha Casa Minha Vida, the estimated 37.5 GWth , accounting for 7% of the global total.52 The
main programme behind the increase in Brazil’s solar thermal four leading countries in 2019 (Germany, Greece, Poland and
capacity between 2009 and 2014.40 Law PL 107 from 2019, Spain) saw mixed results in 2020, with strong growth in Germany
stipulating the use of solar energy in all municipal and federal and declines in Greece, Poland and Spain, resulting largely from
government institutions in the city of São Paulo, also did not changing policies and the impacts of the pandemic.53
enter into force.41 Germany extended its leading position in Europe and reversed
The United States, the fifth largest market for the three main its decade-long market decline, ranking sixth globally for
types of solar thermal collectors in 2020 (with 505  MWth), new installations. Annual sales were up 26% in 2020, to reach
suffered a sharp decline (down 16%).42 This resulted from 450 MWth , or around 83,000 new solar thermal systems for the
a severe drop in sales of glazed collectors (down 71%) due to year. 54 A key driver of growth was the new national support
COVID-19 restrictions and to the end of a major support scheme, scheme to accelerate decarbonisation of the heat sector,
the California Solar Initiative, in July 2020.43 Meanwhile, demand launched at the start of 2020, which covers 40% of the cost of
in the unglazed segment fell only 3%, which led its share in newly replacing an outdated oil heater with a new solar-supported gas
added capacity to increase to 94% (from 81% in 2019).44 The condensing boiler. 55
United States continued to rank third globally for total operating A high volume of grant applications in the last quarter of 2020
capacity, with 18 GWth at the end of 2020.45 helped fuel optimism for continued growth in 2021. 56 Germany
Australia ranked seventh, following Germany for solar thermal reached 13.9 GWth in operation at the end of 2020, accounting for
sales, adding 380 MWth of new capacity in 2020, down slightly 3% of total global capacity. 57
from 2019.46 The Australian solar thermal market has been The solar thermal market in Greece, again the second largest for
dominated by unglazed collectors, which have fluctuated new additions in Europe, contracted significantly (16%) in 2020
between 260  MWth and 280  MWth each year since 2013.47 (for the first time since 2013), with only 213  MWth installed. 58

i The restrictions affected the glazed solar thermal market more than the unglazed market because the glazed market is aligned heavily with new home builds.

140
 03

The drop was caused by reduced sales during lockdowns in district heating plant, in Ludwigsburg, with a solar capacity of
the first half of the year, when shops were closed and internet 10.4 MWth.66 By year’s end, the country had 41 solar district heating
sales were insufficient to offset the decline in direct sales. 59 plans in operation totalling 70 MWth of capacity.67 Five additional
Spain came in third place in Europe in 2020, ahead of Poland plants, with a combined capacity of 22.5 MWth, were being planned
(due to a large market decline in Poland, rather than to expansion or in the installation phase and were expected to come online in
in Spain). The Spanish solar thermal market fell 10% (adding 2021; they included a 13.1  MWth system in Greifswald that, once
131 MWth), in line with the year’s housing market decline, whereas operational, will overtake the Ludwigsburg plant to become the
Poland’s market plunged 44%, with 113  MWth added.60 The country´s largest solar district heating plant.68
contraction in Poland was attributed to the pandemic and to a The strong market in Germany was driven by supportive
phasing out of the emission reduction programme, which aimed framework conditions, including grants from two programmes:
to improve local air quality by subsidising renewable heating the Municipal Climate Change Showcase Programme and
systems purchased and distributed by municipal administrators.61

MARKET AND INDUSTRY TRENDS

Heat Networks 4.0. The Municipal Showcase Programme has
Although most solar thermal capacity continued to be installed provided grants since January 2020 to cover up to 80% of the
for the purpose of water heating in individual buildings, the use of investment cost of municipal activity in the areas of greenhouse
solar thermal technology in district heating expanded further gas reduction, smart infrastructure and wastewater treatment.69
during 2020, and in an increasing number of countries. The vast Heat Networks 4.0 has provided support to utilities since
majority of new solar district heating capacity added was again mid-2017 for feasibility studies and the construction of fourth-
(in descending order) in China, Germany and Denmark. generation district heat networksi, where at least half of the heat
In China, the solar district heating market shifted in 2020 from injected into the grid must come from renewables.70 Thanks in
being purely state-financed to being partly commercial, with large part to these programmes, German utilities increasingly consider
orders from the housing industry. Whereas in 2019, three publicly solar heat to be an economically feasible alternative, promising
funded solar district heating systems were commissioned in stable heat prices over a period of 25  years, compared to the
Tibet (totalling 52 MWth), in 2020 only one such plant (7.9 MWth) volatile prices of natural gas and biomass.71
was erected, at a college in Lhasa.62 Across China, newly installed Denmark continued to lead globally for total district heating
solar thermal capacity for space heating (for both district heating capacity, with more than 1 GWth in operation at the end of 2020.72
and heating of large buildings) increased by a significant 1.7 GWth , However, the country brought online only one small solar district
due to green heating policies aimed at replacing coal boilers in heating plant and three extensions during the year, increasing
the country’s north to improve air quality.63 For this new capacity, total capacity by 10 MWth .73 This is down sharply from 2019, when
the statistics do not differentiate between central space heating 10 new district heating plants and 5 extensions were added for a
projects for blocks of flats or larger buildings (which would be total of 134 MWth .74 The market contraction was due to increasing
considered solar district heating) and decentralised space competition from heat pumps, driven by policy changes.75 As
heating units for rural, single-family houses.64 of mid-June 2019, solar heat was no longer eligible to fulfil the
Germany passed Denmark for new installations of solar district energy savings mandates for utilities, whereas heat pumps were
heating by bringing online six new plants (totalling 22 MWth) in 2020, included in the mandate until the end of 2020.76 At the beginning
following the completion of five new systems (totalling 7.1 MWth) in of 2020, the Danish Energy Agency also began providing grants
2019.65 The 2020 additions included Germany‘s then-largest solar for heat pumps, triggering additional demand.77

The top markets for

solar industrial
heat
in 2020 were China,
Mexico and Germany.

i Fourth-generation heat networks operate at lower temperatures of around 60 degrees Celsius (°C) to reduce heat losses, extend pipe lifetimes and create the
best conditions for injecting heat produced with renewable sources.

141
 RENEWABLES 2021 GLOBAL STATUS REPORT

Demand for new solar district heating systems increased in other on 20 different renewable and energy efficiency options for
existing European markets as well. In France, the market picked decarbonising the district heating grid for over 1 million people in
up in response to an attractive investment grant for large solar the capital city of Ulaanbaatar; among the options is a 49 MWth
heat systems.78 At the start of 2020, France had only a handful of solar district heating plant. 84
solar district heating plants, with the largest commissioned in 2018
With support from the EU project KeepWarm, pre-feasibility
(1.6  MWth) in Châteaubriant; by the end of 2020, three additional
studies for the integration of solar fields in district heating networks
systems were under construction with a combined capacity of
with a total capacity of 37.5 MWth were carried out in the Croatian
7.4 MWth, including a 4.2 MWth field in Narbonne that will be France's
cities of Samobor, Velika Gorica and Zaprešić.85 Solar district
largest solar district heating plant when it comes online in 2021.79
heating also attracted more attention in Serbia and Kosovo during
Austria's subsidy scheme for large and innovative solar thermal 2020 because of the continued support from the EBRD for (pre-)
projects again saw results in 2020, with the inauguration of three feasibility studies.86 In early 2021, feasibility studies were under
new solar district heating fields totalling a combined 4.7  MWth.80 way in Pančevo (Serbia) and Priština (Kosovo) for at least 70 MWth
This represented a change from 2019, when no solar district heating of solar district heating plants.87 The Serbian towns of Bor and
plants were commissioned in Austria.81 A much higher budget for Novi Sad had completed pre-feasibility studies, and Novi Sad's
the subsidy scheme, starting in April 2021, is expected to drive up municipal council was proceeding with the next planning step.88
demand for large-scale applications in the coming years.82
In addition to solar district heating, central solar hot water
Sweden also had a new plant under construction at the end of systems for large residential buildings, hospitals, sport clubs
2020. Once completed in 2023, the 1.5 MWth solar district heating and prisons sold well in Brazil, China and Turkey during 2020.
plant in Härnösand, north of Stockholm, will be the country’s In total, at least 57  large solar thermal systems of at least
largest solar district heating field using concentrating collectors. 83 350  kilowatts-thermal (500  m2) each, used either for district
The global solar district heating market also diversified into heating or for central hot water, were added globally in 2020. 89
new markets in both Europe (Croatia, Kosovo and Serbia) and These capacity additions of 93 MWth brought the total number
Asia (Mongolia, driven by public funding for pre-feasibility of large collector fields to at least 471  systems (1.8  GWth) by
and feasibility studies). In Mongolia, the European Bank for year’s end (including glazed and concentrating solar thermal
Reconstruction and Development (EBRD) funded a study collectors). 90 (p See Figure 33).

FIGURE 33.
Solar District Heating, Global Annual Additions and Total Area in Operation, 2010-2020

Number of systems added

World
Total 471
Systems
Collector area in m2
80 3,000,000
Cumulative
Number of systems collector area
added outside Europe in operation
70 2,650,000
Number of systems outside
Europe
added within Europe
60 2,250,000

50 1,825,000
Cumulative
collector
40 1,500,000 area in
operation
in Europe
30 1,125,000

20 750,000

10 375,000

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note: Includes large-scale solar thermal installations for residential, commercial and public buildings. Data are for solar water collectors
and concentrating collectors.
Source: See endnote 90 for this section.

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 03

MARKET AND INDUSTRY TRENDS

The additions in 2020 appear to represent a decline from the 74 subsidies.101 In Germany, continued funding since 2012 resulted in
large systems reported by technology suppliers as commissioned the commissioning of 10 new plants (totalling 1.5 MWth) in 2020.102
in 2019. 91 However, one large Chinese project developer, which Only one or two industrial solar heat systems were commissioned
was responsible for 36% of the plants completed in 2019, failed each in Austria, Belgium, Cyprus, Italy, Malaysia, Morocco, the
to report any large systems for 2020 despite completing several Netherlands, Niger and Turkey.103
projects; this suggests that the world market remained more or
Although many solar technology suppliers reported delays in
less stable in 2020. 92
installation and construction, some megawatt-size plants were
Also during the year, several international organisations published successfully commissioned in 2020. The top plants for new
a joint report emphasising the need to decarbonise industrial capacity demonstrated the variety of collector types typically
heat demand. 93 However, this urgent call for carbon-free heat used for SHIP plants globally. The largest new installation, at
solutions did not appear to stimulate demand for the use of new 10.5  MWth , used flat plate collectors to heat the greenhouses
solar thermal systems to provide process heat for industry. Only of a freesia farm in the Netherlands.104 The largest plant with
74 solar heat for industrial processes (SHIP) projects, with vacuum tube collectors (4.6  MWth) supplies heat in China to
a total capacity of 92 MWth , came online in 2020, down from 86
a factory in Sanya in Hainan province.105 The largest SHIP
projects and 251 MWth in 2019. 94 Multiple factors contributed to
plant with concentrating collectors (3.9  MWth), used for drying
the relative decline: for example, the pandemic delayed the closing
agricultural products, started operation in May 2020 in Ganzhou,
of contracts and the installation of ordered projects, and India’s
Tibet (China).106 Two 3.5 MWth plants also came online – one in
SHIP market declined in 2020 following the expiry in March of the
Tibet with vacuum tube collectors for greenhouse heating, and
national support programme for solar concentrating systems. 95
one in Turkey with parabolic trough collectors providing heat to a
In the United States, Glasspoint, which was responsible for a
packaging factory.107
large share of the global SHIP capacity added in 2019 (180 MWth
of solar steam capacity commissioned in Oman), closed its doors Hybrid or PV-T collectors, which are solar thermal collectors
in May 2020. 96 mounted beneath solar PV modules to convert solar radiation into
both electrical and thermal energy, have supplied only niche markets
By year's end, at least 891 SHIP systems totalling more than
792  MWth were supplying process heat to factories worldwide.97 in recent years; thus, their capacity is not included in global and
The top markets in 2020 were again China (30 new projects), national capacity statistics. Since PV-T collectors have begun to gain
Mexico (16) and Germany (10), followed distantly by India and Spain popularity in a number of countries in recent years, market data are
(3 each).98 China's demand for solar industrial heat was triggered included in this report for the first time.108 In 2020, 36 manufacturers
by government support policies to activate the economy after the globally reported PV-T capacity of at least 60.5 MWth (connected to
pandemic, which helped drive an increase in the reported number 24 MW-electric), up strongly from 46.6 MWth in 2019.109
of new projects from 26 in 2019 to 30 in 2020. 99 The largest markets in new PV-T additions in 2020 were, in order
Solar industrial heat plants in Mexico are cost competitive with of capacity added, the Netherlands, China, France, Ghana and
fossil fuels such as liquefied petroleum gas (LPG), fuel oil and Germany.110 Demand among residential and commercial clients in
diesel, suggesting the potential for further market growth.100 these countries has been driven by the ability to produce both heat
In many other countries, however, achieving competitiveness and electricity from the same roof space, therefore generating a
against oil and natural gas depends on investment support higher yield per area.111 In the Netherlands, China and Germany,
subsidies for SHIP systems or the elimination of fossil fuel subsidy schemes also have played a role in triggering demand.112

143
 RENEWABLES 2021 GLOBAL STATUS REPORT

SOLAR THERMAL HEATING INDUSTRY margins in contracted projects.120 The company continued to
operate a small maintenance unit to fulfil its long-term service
The global solar thermal industry experienced mixed results in
and warranty contracts with clients.121
2020. Most large manufacturers reduced production volumes
due to disruptions in the movement of labourers and goods Despite the demise of Arcon-Sunmark’s manufacturing
during several months of the pandemic.113 However, a small and development division, the company’s know-how and
number of producers profited from growing demand triggered assets remained partly available in the sector. Greenonetec
by new support policies (as in Germany) and from continuously (Austria) acquired the production line for large-scale collector
high national demand from the construction industry and solar panels, targeting the growing solar district heating market in
mandates in some provinces (as in China).114 Europe.122 In addition, Viessmann (Germany) engaged a team
China’s solar thermal industry, which saw virtually no impact from of Arcon-Sunmark’s planners and sales experts to strengthen
COVID-19, continued two major trends from previous years: a its commercial solar heat project development unit, and
high share of large systems for domestic commercial clients, and Solareast Group (China) bought shares in the company’s
increasing domestic sales of flat plate collectors.115 Consequently, Asian business.123
Chinese companies again dominated the list of the world´s largest US-based Glasspoint closed its doors as well in 2020, due in
manufacturers of flat plate collectors, holding the top six positions: part to uncertainty resulting from the COVID-19 pandemic. In
in the lead was SunEast Group (including the Sunrain and Micoe March, the company was forced into liquidation after existing
brands), followed by Jinheng Solar (with its export brand BTE Solar), shareholders from the oil industry decided to halt the additional
Haier (the majority owner of the Austrian company Greenoneteci funding that was required to keep it operational.124 Glasspoint
until December 2020), Linuo Paradigma, Sangle and Fivestar.116 had been in charge of installing the world’s largest solar steam-
Excluding Greenonetec, which had no sales in China, the other six producing plant in Oman, which reached a capacity of 360 MWth
Chinese flat plate collector producers increased their combined in early 2020.125 The company’s difficulties started in 2019, when
sales volume 12% in 2020, growing faster than the domestic flat implementation of a 850  MWth solar steam-producing project
plate collector market overall (up 6%).117 Industry consolidation in in the Belridge oilfields of California was delayed due to a lack
China continued, with only large solar equipment manufacturers of financing; this was followed by a halt in the extension of the
implementing the rising number of solar space heating projects Oman project because the client did not approve the third phase
and responding to central procurement offers for solar water at the beginning of 2020.126
heating equipment for big construction projects.118 Outside China, Medium-sized European technology suppliers signed a number
the combined sales volumes of the 14 largest flat plate collector of new contracts during 2020 using improved business models
manufacturers fell 9% on average in 2020, buffered slightly by that help to reduce the risk and the heat costs for clients investing
strong sales growth in Germany.119 in large-scale solar heat systems; these included solar heat
Global leaders in large solar heat project development also were contracts and sales of complete production lines. NewHeat
affected by declines in the number of contracted projects and (France) secured a bank loan of EUR 13 million (USD 16 million) in
setbacks in project development in 2020. Arcon-Sunmark, the September for a pool of five large commercial solar heat systems
market leader in solar district heating from Denmark, closed in France, totalling 28  MWth .127 As an energy service company,
its collector factory and stopped project development in mid- NewHeat offers solar heat contracts to two industrial sites and
June, after several years of high fluctuations in turnover and low three district heating utilities.128

COVID-19 restrictions

slowed
installation work
on solar industrial heat
plants already under
contract.

i In December 2020, Greenonetec founder re-acquired the 51% ownership stake that was sold to Chinese Haier in May 2017.

144
 03

In April 2021, Kyotherm (France), which specialises in financing Increasing awareness of solar thermal technologies by end-
renewable heat projects, commissioned, together with its customers in the Russian Federation fuelled optimism in 2020
subcontractors (among others NewHeat, Savosolar of Finland for investing in solar component factories. During the year, St.
and Sunoptimo of Belgium), Europe’s largest solar industrial Petersburg saw the ramping up of two factories by privately
heat plant, a 10  MWth project for a malting facility in France.129 owned Russian companies: the engineering firm Silagnis started
Kyotherm, with its network of solar thermal project developers, producing heat pumps and solar collectors, and Solar Fox
continued contractual negotiations with commercial heat increased its manufacturing volume of solar air collector units.140
consumers in the United States and India, with the first contracts A strong and committed supply chain of around 80 turnkey
expected to be signed in 2021.130 SHIP suppliers offered solar heat solutions to industrial clients in
In early 2021, Absolicon (Sweden) signed its 13th letter of interest 2020, despite the challenges of the pandemic.141 Four out of five
thus far, with a potential buyer for its complete parabolic trough companies confirmed that the pandemic delayed the closing of
SHIP contracts in 2020, because of economic uncertainty among

MARKET AND INDUSTRY TRENDS

collector production line, which has a typical annual capacity of
100,000 m2.131 The purchasers intend to invest in new production potential customers.142 Three out of four suppliers also confirmed
lines and are located around the globe, including in Ecuador, that COVID-19 restrictions slowed installation work on plants
Ghana, India, Kenya, Mexico, Spain, Turkey and Uruguay.132 With already under contract.143 Consequently, only 15 of the around 80
this strategy, Absolicon aims to reduce technology costs by SHIP suppliers commissioned at least one project during the year,
enabling its buyers to produce solar collectors close to a large compared to 25 companies that put up at least one plant in 2019.144
number of potential heat customers in sun-rich countries.133 Linuo Paradigma (China) was the 2020 market leader in both new
Concentrating solar heat solutions are commonly used to projects and newly added SHIP capacity, reporting 22 projects
produce temperatures above 100°C, even though other collector totalling 58 MWth in 2020.145 High demand in China was triggered
types, such as high-vacuum flat plate collectors, are able to reach by government support policies to activate the economy, which
temperatures up to 180°C.134 Such systems use concentrating helped industrial clients invest in SHIP plants.146 Modulo Solar
collector technologies with smaller dimensions (length and (Mexico) realised the second largest number of SHIP plants,
width) than for concentrating solar thermal power plants and with 13 new small systems that totalled 0.8 MWth .147 The second
provide heat for processing as well as for steam networks in largest company for SHIP capacity in 2020 was SunEast Group
hospitals or district heating. An increasing number of collector (China), which reported the completion of five systems with a
manufacturers have met the challenge of providing such high- total of 8 MWth .148
temperature solutions. By the end of 2020, 23 solar industrial heat Project developer Kyotherm had to postpone (to 2021) the
suppliers based in China, Europe, Mexico and North America commissioning of its 10 MWth SHIP plant at a malting factory in
were producing concentrating collectors, dominated by parabolic central France because of travel restrictions in Europe during the
trough producers (14 companies) then Linear Fresnel (7) and pandemic.149 Similar restrictions affected other manufacturers,
concentrating dish (2) producers.135 such as VSM Solar (India) and Absolicon (Sweden), which were
A new generation of developers and manufacturers of innovative unable to execute confirmed orders.150 Although the number
concentrating collector technologies established in recent years and capacity of new SHIP plants were down in 2020, the large
revealed their first demonstration or commercial projects in 2020. number of delayed plants under contract fuels hope that the
These technology providers rely on a wide range of concepts market will increase again in 2021.151
aimed at further lowering the cost of energy by reducing the
quantity of material input per unit and by improving performance.
The largest new producer, established in 2016, is WuCheng
Energy based in Inner Mongolia, China, which signed contracts
in 2021 to build a commercial 82  MWth district heating plant
with parabolic trough collectors in the northern Chinese city of
Handan, slated to start construction in summer 2021.136
Solarflux Energy Technologies (US) relies on a dish receiver
that, as of early 2021, had been shipped to China, India, Mexico,
Qatar and the United States to be used in demonstration projects
(totalling 650 m2).137 Four other start-ups – Skyven Technologies
(US), True Solar Power (Spain), Umbral Energia (Mexico) and
Heliac (Denmark) – were developing new solar collectors that
consist of a heliostat array focusing on a receiver.138 Concentrating
collector companies in the technology prototype stage included
Alto Solution (France), with a new parabolic trough unit, and
Heliovis (Austria), which is developing a concentrator housed in
an inflatable cylindrical foil-walled tunnel.139

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 RENEWABLES 2021 GLOBAL STATUS REPORT

WIND POWER
KEY FACTS WIND POWER MARKETS
An estimated 93  GW of wind power capacity was
installed globally in 2020 – including more than
  The world added a record 93 GW of wind
86.9 GW onshore, the highest yet, and nearly 6.1 GW offshore.1
power capacity in 2020, led by China and the
This record-breaking market was 45% above the previous
United States. Both countries broke national high, in 2015 (63.8  GW), and represents an increase of nearly
records for new installations, driven in part by 53% relative to 2019 installations. 2 For several months of 2020,
pending policy changes. The rest of the world pandemic-related restrictions disrupted supply chains, rendered
commissioned about the same amount as much of the wind energy workforce unavailable, resulted in
in 2019, but several additional countries had postponed or cancelled auctions and delayed investments, and
record-breaking years. forced delays or cancellations to project construction in many
countries, particularly in the onshore sector. 3 But even with the
  For the first time, global capital expenditures global health, economic and political challenges, by year’s end
committed to offshore wind power in 2020 total global wind power capacity was up 14% over 2019 and
surpassed investments in offshore oil and gas. neared 743 GW (707.4 GW onshore and the rest offshore); this
was double the capacity in operation worldwide only six years
  The industry continued to face perennial earlier, at the end of 2014.4 (p See Figure 34.)
challenges exacerbated by the pandemic,
The rapid growth in 2020 was due to a dramatic increase in China
but maintained momentum in technology
as well as to a jump in the United States in advance of policy
innovation in continuous pursuit of an ever changes; the rest of the world installed about the same amount of
lower levelised cost of energy. (net) additional capacity as it did in 2019.5 The pandemic added to
previously existing financing, infrastructure, policy and regulatory
  Wind power accounted for a substantial
challenges in some countries, while other countries (in addition
share of electricity generation in several to China and the United States) saw record installations during
countries in 2020, including Denmark (over 2020, including Argentina, Australia, Chile, Japan, Kazakhstan,
58%), Uruguay (40.4%), Ireland (38%) and the Norway, the Russian Federation and Sri Lanka.6 New wind farms
United Kingdom (24.2%). reached full commercial operation in at least 49 countries, down
from 55 countries in 2019, and at least one country, Tanzania,
brought online its first commercial project.7 By the end of 2020,

FIGURE 34.
Wind Power Global Capacity and Annual Additions, 2010-2020
Gigawatts

743
800
743
World
700
650 +93 Gigawatts Total
591 +61
600
540 +51
488 +54
Annual additions
500
433 +55 Previous year‘s
400 370 +64 capacity
319 +52
300
283 +36
238 +45
198 +41
200
+39
+38
100

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note: Totals may not add up due to rounding.

Source: GWEC. See endnote 4 for this section.

146
 03

more than 100  countries had some level of commercial wind Kingdom (24.2%), Portugal (24%), Germany (23.2%) and Spain
power capacity, and 37 countries – representing every region – (21.9%).15 Uruguay (40.4%) and Nicaragua (27.6%) also achieved
had more than 1 GW in operation. 8 high shares of generation from wind energy, and shares were high
Rapidly falling costs per kilowatt-hour (both onshore and at the sub-national level in several countries.16 Globally, wind power
capacity in operation accounted for an estimated more than 6% of
offshore) have made wind energy ever more competitive and
total electricity generation in 2020.17
allowed onshore wind power to compete head-to-head with
fossil fuel generation in a large and growing number of markets, For the 12th consecutive year, Asia was the largest regional
often without financial support. 9 The economics of wind energy market, representing nearly 60% of added capacity (up from
have become the primary driver for new installations.10 Outside of 50% in 2019), with a total of nearly 348.7 GW by the end of 2020;
China (which had a feed-in tariff, or FIT) and the United States almost 56% of new capacity was in China alone.18 Most of the
(with tax credits and state renewable portfolio standards, or RPS), remaining installations were in North America (18.3%), Europe
global demand for wind power in 2020 was driven largely by other (14.8%) and Latin America and the Caribbean (5.0%).19 The only

MARKET AND INDUSTRY TRENDS

policy mechanisms including auctions (or tendering).11 Corporate regional markets that did not expand in 2020 were Europe, where
power purchase agreements (PPAs) are playing a growing role in the pandemic pushed many installations into 2021, and Africa
some markets, particularly in the United States and Europe but and the Middle East, which remained stable. 20
also increasingly in Latin America and Asia. In 2020, however, the China widened its lead for new capacity (both onshore and
capacity contracted globally through corporate PPAs was down offshore) and was followed distantly by the United States, which
29% relative to 2019, to 6.5 GW.12 was well ahead of Brazil, the Netherlands and Spain; these
Wind power provides a substantial share of electricity in a growing five countries together accounted for just over 80% of annual
number of countries. In 2020, wind energy generated enough to installations, with China and the United States alone responsible
provide an estimated 15% of the annual electricity consumption in for nearly 74%. 21 Other countries in the top 10 for total capacity
the EU-27, and much higher shares in at least five individual Member additions were Germany, Norway, France, Turkey and India. 22
States.13 Wind energy met an estimated 48% of Denmark’s electricity (p See Figure 35 and Reference Table R18 in GSR 2021 Data
demand in 2020 and accounted for nearly 58.6%i of the country’s Pack.) Although the list of the biggest markets changed
total generation.14 Other European countries with wind generation significantly relative to 2019, the top 10 countriesii for cumulative
shares of at least 20% for the year included Ireland (38%), the United capacity were unchanged from those in both 2018 and 2019. 23

i The difference between generation (electricity produced within a country’s borders) and consumption is due to imports and exports of electricity, as well as to
transmission and distribution losses (which vary considerably across countries).
ii The top countries by additions in 2019 were China, the United States, the United Kingdom, India, Spain, Germany, Sweden, France, Mexico and Argentina. The top
10 for cumulative capacity in the years 2018-2020 were China, the United States, Germany, India, Spain, the United Kingdom, France, Brazil, Canada and Italy.

FIGURE 35.
Wind Power Capacity and Additions, Top 10 Countries for Capacity Added, 2020
Gigawatts

300 +52.0

250 80 Added in 2020

2019 total
200 +1.7
60
+10.8
150
+16.9 +1.1
40
100
+1.7
80
20 +2.3 +1.3
50
+2.0 +1.2
+1.5
0
In
Tu
Fr
N
G
Sp
N
Br
Un
Re
Ch

or
er

d
et

an

rk
az

ia
st

i
in

m
he
te

w
in

ey
ce
il
a

ay
an
d

rla
fW

St

y
n
at
or

ds
es
ld

Note: Numbers above bars are gross additions, but bar heights reflect year-end totals. Germany's net additions were slightly below those of Norway.
Source: See endnote 22 for this section.

147
 RENEWABLES 2021 GLOBAL STATUS REPORT

China had its biggest year yet for new installations, despite Overall, an estimated 16.6  TWh of potential wind energy was
pandemic-related delays to grid connections early in the year. 24 curtailed in China during 2020 – an average of 3% for the year,
The estimated 52 GW (48.9 GW onshore and 3.1 GW offshore) down from 4% (16.9  TWh) in 2019, and below the national
added in 2020 was about what the entire world installed in 2018, government’s targeted cap (5%). 36 Curtailment remained
and almost double China’s 2019 installations, and brought the concentrated mainly in Xinjiang, Gansu and Western Inner
country’s total wind power capacity to an estimated 288.3 GW. 25 Mongolia, but all three regions continued to see reductions
Around 72  GW (including 3.1  GW offshore) of wind power relative to previous years. 37 China’s generation from wind energy
capacity was integrated into the national grid in 2020, with was up 15% (to 466.5  TWh), and wind energy’s share of total
281 GWi considered officially grid-connected by year’s end. 26 generation continued to rise steadily, reaching 6.1% in 2020 (up
The Chinese market was driven primarily by a rush to install from 5.5% in 2019). 38
onshore projects that had to be grid-connected before the end of Elsewhere in Asia, Turkey’s annual installations nearly doubled
2020 to receive the expiring national feed-in tariff. 27 The offshore relative to 2019, with 1.2  GW added for a total approaching
market also faces a FIT qualification deadline (see discussion later 9.3  GW (all onshore).39 For the first time since 2017, Turkey was
in this section). 28 During the year, the central government reaffirmed among the top 10 countries globally for capacity added, ranking
plans for onshore wind power (and solar PV) to achieve grid parity ninth.40 Around 5 GW of new capacity was under construction
by 2021. 29 The policy changes result from a mounting deficit in as of early 2021.41 Turkey is working to expand its renewable
China’s Renewable Energy Development Fund, which has caused energy capacity to lessen the country’s heavy reliance on
a backlog of outstanding FIT payments for existing projects (only imported energy, create jobs and reduce the national carbon
worsened by the pandemic), and from the central government’s footprint.42 Wind energy accounted for 8.4% of Turkey’s
belief that wind (and solar) power is capable of competing without electricity generation in 2020.43
subsidies with coal-fired power.30 In 2020, China accounted for
67% of the 33.7 GW onshore wind capacity awarded globally in India fell from fourth to tenth place globally for additions,
auctions, and most of China’s awarded capacity was based on the experiencing its lowest annual additions since at least 2006;
grid-parity scheme.31 however, it continued to rank fourth for total capacity at the end
of 2020.44 India added 1.1 GW for a year-end total of 38.6 GW, all
The majority of China’s wind power capacity continues to be
operating onshore.45 Installations peaked in 2017 (4.1  GW) and
in the north and west of the country, and at the end of 2020
(aside from a slight uptick in 2019) have declined since auctions
wind power accounted for more than 20% of total capacity in
were introduced to the wind tendering process in 2017.46 The
several provinces in these regions. 32 However, deployment has
number and diversity of local investors in India’s wind power
continued to shift towards China’s demand centres in the more
sector also have declined since the shift to auctions, while
populated regions in the central east and south, which together
installations have become more concentrated geographically.47
accounted for 40% of newly installed capacity in 2020. 33 The top
regions and provinces for official grid-connected additions during At the end of 2020, the top Indian states for total capacity were
the year were East Inner Mongolia (6.8  GW), Henan (6.6  GW), Tamil Nadu (9.4 GW), Gujarat (8.2 GW) and Maharashtra (5 GW),
Shanxi (5.5 GW) and Hebei (5.2 GW). 34 As the main wind regions which together accounted for nearly 59% of the country’s total
in China approach saturation, with ongoing curtailment and wind power capacity.48 Across India, wind energy generated
fewer sites available for deployment, the country’s wind sector around 5% of all electricity during 2020; despite the increase in
is increasingly looking to distributed options and in particular to capacity, output fell 24% during the peak wind season (June to
offshore wind along China’s extensive coastline, where economic September) compared to 2019, due mainly to a significant and
activity is concentrated. 35 unusual drop in wind speeds, and it was down 5% for the year.49

The United States

added more
capacity
in the final three months of
2020 than in any previous
year except 2012.

i Statistics differ among Chinese organisations and agencies as a result of what they count and when. See endnote 26 for this section.

148
 03

India’s wind sector has faced challenges associated with grid Wind energy accounted for 8.4% of US utility-scale electricity
connection and permitting, land acquisition and (during the generation in 2020, up from 7.3% in 2019 and nearly four times the
pandemic) significant project construction delays.50 By mid-year, share a decade earlier.66 In Texas, the country’s largest electricity
a large amount of the capacity tendered in 2017-18 was not yet consumer by far, wind energy passed coal for the first time and
online, due to these challenges and to low winning tariffs that accounted for nearly 20% of the state’s utility-scale generation.67
some developers have deemed unviable, making it difficult to Wind energy saw higher shares for the year in at least 10 other
obtain financing. 51 The Indian government announced plans to states, including Iowa (58%), Kansas (43%), Oklahoma (35%)
remove tariff caps from future wind (and solar) power tenders, and North Dakota (31%).68 The Southwest Power Pool (SPP),
eliminating a key limitation on investor interest; even so, in late a regional transmission organisation, became the first US grid
2020, two European companies stated that they would not operator to see wind energy become the top source of electricity,
participate in India’s auctions, despite the country’s large resource surpassing both coal and natural gas.69 The SPP, which covers
potential, due to low tariffs combined with land acquisition and some of the windiest states in the central plains corridor, has a

MARKET AND INDUSTRY TRENDS

grid connection problems. 52 robust transmission system and relies on accurate forecasting,
Japan placed fourth in Asia with record additions of almost a diverse mix of generators and an efficient wholesale market
0.6  GW (double the country’s 2019 installations) for a total of to manage high shares of variable renewable energy.70
(p See Systems Integration chapter.)
4.4  GW. 53 The increase in projects under development both
onshore and offshore was driven by the country’s generous Despite the many advances across the United States, developers
feed-in tariff. 54 Kazakhstan brought 0.3  GW online during the continued to report challenges related to raising tax equityii for
year, as the oil-rich country looks to green its energy mix and projects already in development due to economic uncertainty,
achieve 50% renewable electricity by 2050.55 Other countries limited tax equity supply and tight lending standards.71 New projects
in the region that installed new wind power capacity in 2020 increasingly are facing challenges related to project siting and
included Chinese Taipei (74 MW), Pakistan (48 MW added), the resource availability, as well as grid congestion.72 Many of the best
Republic of Korea (160 MW, including 60 MW offshore), Sri Lanka areas for wind power projects in some states, such as California,
(88 MW) and Vietnam (125 MW), where the market was driven have already been developed or have established prohibitions on
by a planned FIT expiration, a decline in the capital cost of wind new development, while grid congestion and related transmission
turbines and rapid growth in electricity demand. 56 upgrade costs have led to the cancellation of several wind (and
The Americas added a record of nearly 22  GW (up 62% over solar) power projects – including many that had already secured
2019), with most (72%) installed in the United States. 57 The PPAs – in nearly every region of the country.73
country commissioned 16.9 GW of new capacity in 2020, up 85%
over 2019 installations. 58 US capacity brought online in the fourth
quarter alone exceeded annual additions for every preceding year
except 2012. 59 For the ninth year running, the oil and gas state of
Texas was the leader in annual wind power installations (4.2 GW),
followed by Iowa (1.5  GW), Wyoming (1.1  GW), Illinois (1.1  GW)
and Missouri (1 GW).60 At year’s end, US total capacity reached
122.5  GW, enough to power more than 38 million average US
homes.61 Texas continued to lead for total capacity (33.1  GW),
with 27% of the US total; if Texas were a country, it would rank
fifth globally for cumulative installations.62
As in past years with record additions, the US market was
propelled by the impending phase-out of the 100% federal
production tax crediti (PTC) at year’s end, which was granted a
one-year extension in late 2019, and extended again at the end
of 2020.63 Demand from corporations also played a role, as did
utilities (through direct ownership and, primarily, through PPAs)
aiming to meet customer preferences, sustainability goals and
mandates under state RPS laws.64 US wind power PPAs for the
year totalled 5.4 GW, down relative to the previous two years due
at least in part to uncertainty caused by COVID-19.65

i The PTC gives wind energy generators a tax credit of roughly USD 0.02 per kilowatt-hour for electricity fed into the grid. Starting in 2021, the credit was scheduled
to decline steadily and to end in 2025. In light of delays and supply chain issues caused by the pandemic, the commissioning deadline for projects that began
construction in 2016 and 2017 was extended by one year; in December 2020, the PTC was legally extended for a further year at 60% of the full credit rate.
ii Essentially, trading the monetary value of the federal PTC (the future stream of tax credits to be received upon project completion) for upfront capital in order
to develop a project.

149
 RENEWABLES 2021 GLOBAL STATUS REPORT

Canada had a relatively slow year in 2020 (adding less than Europe added 13.8  GW of new wind power capacity in 2020
0.2 GW), and most of the remaining installations in the Americas (down nearly 7% relative to 2019), of which 21% is operating
were in Latin America and the Caribbean.74 Even as the region offshore, bringing the region’s total to nearly 210.4 GW.87 Onshore
was hard-hit economically by the pandemic, a record 4.7 GW of additions were below expectations due largely to commissioning
new capacity came online, with Brazil ranking third globally for delays resulting from COVID-19-related supply chain disruptions
additions and eighth for total capacity.75 Wind power has become and restrictions on the movement of people and goods, as well
the region’s fastest growing power source, with around 33.9 GW as continued permitting delays in some countries (particularly
of wind power capacity operating across at least 26 countries at Germany). 88 As in other regions, the diversity and number of
year’s end.76 investors has declined in recent years with the phase-out of
Brazil added 2.3 GW, three times the country’s 2019 installations, FITs. 89 Even so, 2020 was Europe’s third biggest year for new
installations, after 2017 and 2019. 90
for a total of 17.7  GW.77 The significant increase was thanks to
capacity deployed through local PPAs, driven by wind energy’s Outside of the EU, annual additions were up the most in Norway
competitive prices in Brazil.78 The government cancelled auctions and the Russian Federation, both with record installations.
in 2020 due to the pandemic but rescheduled them for 2021.79 Norway added 1.5 GW of capacity onshore, for an onshore total
Wind energy accounted for 9.7% (56.5 TWh) of the country’s total of nearly 4 GW. 91 Europe’s largest wind farm (1 GW Fosen) was
2020 electricity generation. 80 completed in Norway, despite the country’s low power prices and
Argentina (1 GW) and Chile (0.7 GW) followed Brazil in the region, protests over the project’s potential impacts on local reindeer
both with record years. 81 Mexico (0.6 MW), Panama (66 MW) and herders. 92 The Russian Federation increased its capacity more
than four-fold (adding 0.7  GW), as capacity awarded in a 2018
Peru (38 MW) also added capacity. 82 After two years of ranking
among the world’s top 10 installers, Mexico’s market declined 45% auction began to come online, for a year-end total of 0.9 GW. 93
Although the Russian Federation remained the world’s only major
in 2020 due to policy and regulatory changes undertaken since
economy just beginning to develop a domestic wind market and
a new federal administration took office in late 2018 – including
industry, the awarded capacity (3.3 GW in total) should continue
the cancellation in 2019 of government-led electricity auctions. 83
The changes have eroded the competitiveness of electricity from to come online through 2024. 94
wind energy and other renewable sources, creating significant In the United Kingdom, which just a year prior was the top installer
uncertainty for potential private investors and developers. 84 in Europe and the third largest globally, additions fell 75% in 2020
Social acceptance issues and limited grid connection availability to 0.6  GW, most of it added offshore, for a cumulative total of
also have hampered Mexico’s wind energy development. 85 PPAs 24.2 GW.95 After five years with no public support for onshore wind
for corporate procurement in Mexico nearly dried up in 2020, (or solar) power, the UK government announced in 2020 that the
whereas Brazil signed a record 1  GW of corporate renewable technology will again be allowed to participate in the Contracts
energy PPAs that year. 86 for Difference schemei. 96 Wind generation rose 18% relative to
2019 due to increased capacity and even more so to favourable
wind conditions, particularly offshore, where output increased
26% and exceeded onshore generation for the first time. 97 During
the year, more than 100 wind farms across the United Kingdom
were participating in a flexibility market trial, enabling them to
provide balancing services; industry governance codes require
new UK wind farms to provide “power available” signalsii. 98
Most new capacity in Europe was installed in the EU-27,
which brought online nearly 10.8  GW (8.4  GW onshore and
2.4  GW offshore), or net additions of 10.4  GW (accounting for
decommissioning). 99 Across the 27 Member States, 16 added
capacity during 2020, down from 18iii in 2019.100 Annual additions
were slightly below those in 2019, with installations down in all
but a handful of countries.101 The EU ended the year with a total
of 179.3 GWiv, including 164.7 GW onshore and 14.6 offshore.102

i The Contracts for Difference (CfD) is the UK government’s primary mechanism for supporting renewable electricity generation. Developers that win contracts
at auction are paid the difference between the strike price (which reflects the cost of investing in the particular technology) and the reference price (a measure
of the average market price for electricity).
ii A power available signal is a live data feed available to engineers in the control room of the UK’s National Grid ESO. The data provide engineers with the
potential maximum power output of a generator (in this case a wind farm) at any given time, enabling control systems to calculate each generator’s response
and reserve capability; this in turn allows the generator to compete with other generators to provide real-time response and reserve services. See endnote 98
for this section.
iii This figure excludes the United Kingdom for the sake of comparison.
iv Note that the EU cumulative data are lower than those reported for end-2019 because they no longer include the United Kingdom, which ended 2020 with
around 24.2 GW (13.7 GW onshore and 10.4 GW offshore).

150
 03

The community structure

of the Dutch Zeewolde
project helped to
increase social

MARKET AND INDUSTRY TRENDS

acceptance,
easing permitting and
reducing risk for potential
financers.

The EU’s annual wind power market was again fairly concentrated, Germany placed third in the EU (and all of Europe) and sixth
with the top five countries – the Netherlands (added 2  GW), globally for new capacity, but total additions were the country’s
Spain (1.7 GW), Germany (nearly 1.7 GW), France (1.3 GW) and lowest in a decade.116 Germany added almost 1.7 GW (1.4 GW net)
Sweden (1 GW) – accounting for 70% of the total.103 Although it for a total of 62.6 GW (54.9 GW onshore and 7.7 GW offshore).117
was not among the top countries, Poland also saw a substantial Offshore installations (0.2 GW) were down 80% relative to 2019;
jump over 2019 with 0.7 GW installed (up from 0.05 GW), helping onshore additions increased nearly 33% after two years of
to balance the decline in other countries.104 The leading countriesi decline following Germany’s shift from a feed-in policy to tenders,
for cumulative capacity at year’s end were Germany, Spain, but were at their second-lowest level since 2010.118 Even so, wind
France, Italy and Sweden.105 output was up 4% and wind energy accounted for 23.6% (131
The Netherlands was the top installer in Europe and ranked TWh) of national gross electricity consumption during 2020,
fourth globally, adding nearly 2  GW (up from 0.3  GW in 2019) exceeding brown coal (lignite) for the second consecutive year.119
for a cumulative total of 6.8  GW.106 Most of the new capacity In recent years, most of Germany’s auctions for onshore capacity
was offshore, with the country’s largest offshore project have been undersubscribed (including six of seven in 2020), and
fully commissioned in December.107 Onshore in mid-2020, a annual deployment has fallen significantly. Factors behind the drop
cooperative of 200 local residents, farmers and other investors include restrictive siting legislation in some states, complex planning
closed turbine supply contracts and financing for a repowering procedures and a decline in local proponents as the number of
project near Amsterdam.108 Once completed in 2021-2022, the local investors has fallen and projects increasingly are planned
0.3 GW Zeewolde project is expected to be the largest onshore by a relatively limited number of participants (mostly larger-scale
wind farm in the Netherlands and the largest community-owned developers); these developments together have resulted in a lack
wind power project in Europe.109 The community structure helped of permitted projects eligible to compete in the tendering process.120
increase social acceptance of the project, easing permitting and As of mid-2020, the onshore wind permitting process took more
reducing risk for potential financers.110 The Dutch government than two years, compared to the historical average of 10 months.121
aims to increase community ownership from only a small fraction Uncertainty about possible changes to setback distancing rules
of wind power capacity in 2020 to 50% of new wind (and solar) also has reduced investments in new onshore capacity; in mid-
projects by 2030.111 2020, the federal government gave states the final authority on
Spain ranked second in the region and fifth globally for new distancing rulesii.122 Germany’s New Renewable Energy Sources Act
(EEG 2021), passed at the end of 2020, set a new target for a total of
capacity, adding more than 1.7 GW for a total of 27.4 GW.112 While
71 GW of wind power onshore (and 20 GW offshore) by 2030.123
down from the 2.2  GW brought online in 2019, and below the
government’s target (set in 2020) of 2.2  GW per year to 2030, For the EU and the United Kingdom combined, wind energy
it is a significant increase over annual installations during the generated an estimated 458 TWh in 2020 (up from 417 TWh in
years 2009 through 2018.113 In late 2020, Spain approved an order 2019) and met around 16.4% of total electricity demand (13.4%
that regulates a new auction mechanism for wind and other with onshore and 3% with offshore wind).124 The 1.9 percentage
renewable power capacity for the 2020-2025 period.114 Wind point share increase relative to 2019 resulted from additional
energy accounted for 21.9% of Spain’s electricity generation capacity, windy conditions early in the year and a drop in
in 2020.115 electricity demand due to COVID-related restrictions.125

i If the United Kingdom were still an EU member, the country would rank third in the EU for total capacity, and the top five list would remain unchanged from 2019.
ii New federal provisions allow states to set minimum distances between turbines and residential areas at 1,000 metres. See endnote 122 for this section.

151
 RENEWABLES 2021 GLOBAL STATUS REPORT

In the South Pacific, Australia continued to account for China added a record 3.1  GW of offshore capacity, raising the
the majority of new installations, while New Zealand added total 44% to around 10  GW.143 More capacity might have been
capacity (0.1 GW) for the first time since 2015.126 For the second commissioned in 2020, but progress was stalled by bottlenecks
consecutive year, Australia saw records for both installations and including supply chain issues and a lack of offshore turbine
output, with 1.1  GW brought online at 10 new wind farms for a installation vessels.144 Developers rushed to finalise projects
total approaching 7.4  GW (all onshore).127 Renewable capacity before the end of 2021, when the national FIT for offshore wind
under corporate PPAs also achieved a new capacity record, with power is scheduled to end.145 Jiangsu, Fujian and Guangdong
wind power accounting for 41% (the rest being solar PV) of the together were home to more than 80% of China’s offshore
1.3  GW contracted in 2020.128 Community engagement also is capacity in operation at the end of 2020.146 These and other
playing a growing role in Australia, with the industry increasingly coastal provinces have set offshore wind capacity targets totalling
recognising the importance of benefit sharing with the local nearly 60 GW of capacity by 2030.147
community for successful project development.129 Elsewhere in Asia, the Republic of Korea added 60  MW of
Wind power again was Australia’s largest renewable source of offshore wind power capacity; Japan launched its first offshore
electricity, producing 22.6  TWh (up 16% over 2019), or 9.9% of wind auctions, including one for a floating wind farm; and Chinese
the country’s total generation.130 Among the individual states, the Taipei had three projects under construction offshore with a total
highest local shares of generation occurred in Victoria (29.7%), capacity of 0.7 GW.148 The Republic of Korea aims for 12 GW of
South Australia (25.9%) and New South Wales (20.4%).131 The offshore capacity by 2030, and in December 2020 Japan released
rapid increase in the number and capacity of large wind (and a vision document that calls for 10  GW of offshore capacity by
solar) power projects and their output continued to challenge the 2030 and 30-45 GW by 2040.149
grid, with ongoing connection and transmission issues; several In July 2020, a PPA was signed for the entire output of a 0.9 GW
state governments announced renewable energy zones that are wind project (the world’s largest-ever renewable energy PPA at
expected to ease pressure on the grid.132 (p See Solar PV section the time) off the west coast of Chinese Taipei that is due to begin
in this chapter.) construction in 2025.150 To date, relatively few corporate deals
Africa and the Middle East combined installed over 0.8 GW of have been signed globally for offshore wind energy, but corporate
wind power capacity, nearly the same amount as in 2019, despite the interest is increasing due to the large scale of generation, high
pandemic’s impact on supply chains and project installation.133South capacity factors, fairly uniform generation profile and falling
Africa accounted for nearly 63% of these additions with more costs.151 Six new offshore PPAs also were signed in Europe, for
than 0.5  GW added, followed by Senegal (0.1  GW), which fully projects in Belgium, Germany and the United Kingdom, following
commissioned its first commercial wind farm, and Morocco (nearly the first six in 2018-19.152 PPAs have become an increasingly
0.1 GW), where several additional projects were under construction.134 important means for developers to guarantee revenue over the
Jordan, Iran, Egypt and Tanzania also added capacity, with Tanzania long term, especially in the case of exposure to wholesale market
completing its first commercial wind project.135 At year’s end, price (as with “zero-subsidy” bids at auction).153
13 countries in Africa and 5 in the Middle East had a total of 7.3 GW Europe remained home to most of the world’s offshore capacity.
of wind power capacity (all onshore), with most of it in South Africa The region added 2.9 GW in 2020 (down 20% from 2019) in nine
(2.5 GW), Egypt (1.5 GW) and Morocco (1.3 GW).136 completed wind farms, bringing the regional total to 25  GW.154
Countries in the region are installing wind (and solar) power to The Netherlands more than doubled its offshore capacity
diversify their energy mix, lower per unit electricity costs while (adding 1.5  GW) and accounted for more than half of Europe’s
meeting rising demand, reduce reliance on imported electricity installations; it was followed by Belgium (0.7 GW), which had a
and fuels, and free up more of their own oil and gas for export.137 record year, the United Kingdom (0.5  GW), Germany (0.2  GW)
For example, to eliminate its heavy reliance on imported and Portugal (nearly 17 MW).155 UK installations were the lowest
electricity from Ethiopia, Djibouti was planning its first utility- since 2016, not because of faltering commitment but because of
scale wind project (59  MW) in 2020, and Ghana was planning
for 1 GW of wind capacity to reduce reliance on fossil fuels and
hydropower, which has seen output decline with reduced river
flows.138 However, both Africa and the Middle East continued
to face challenges to further wind power deployment, including
uncertain or unsupportive policy and power market frameworks,
bottlenecks in transmission infrastructure and off-taker risk.139
In the offshore wind power segment, five countries in Europe
and two in Asia, as well as the United States, connected nearly
6.1  GW in 2020, increasing cumulative global offshore capacity
to more than 35.3  GW.140 Wind turbines operating offshore
accounted for 6.5% of all newly installed global wind power
capacity in 2020 (down from 10% in 2019) and represented 4.7%
of total capacity at year’s end (down from 5% in 2019).141 China led
the sector for the second year running, accounting for just over
half of new installations, and Europe installed most of the rest.142

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a gap between government contracting rounds, and foundations 55.9  GW was in interconnection queues by mid-year.165 Actual
were installed to prepare sites for enormous future wind farms.156 installations remained low, however. The country’s first project
Germany saw its lowest numbers in nearly a decade, with no installed in federal waters, a 12 MW piloti off the coast of Virginia,
new offshore wind power projects under construction at year’s was completed during 2020, bringing total US offshore capacity
end as all projects planned under tenders had been installed. to 42 MW.166
However, under a new offshore wind energy law that entered Other US developments in 2020 included: New York state issued a
into force in December 2020, Germany is set to increase offshore second solicitation for 2.5 GW; Rhode Island announced a request
tender volumes significantly.157 Portugal’s additions of two floating for proposals for 0.6 GW; Massachusetts approved contracts for
turbines completed the Windfloat Atlantic wind farm.158 Europe’s the 0.8 GW Mayflower Wind project; the Icebreaker project on
total floating capacity reached 62 MW, and the pipeline for floating Lake Erie moved forward after years of permitting battles; and
wind projects in the region for the next decade exceeds 7 GW.159 Louisiana began investigating the potential for offshore wind in

MARKET AND INDUSTRY TRENDS

At year’s end, five countries continued to host nearly all of the Gulf of Mexico to create jobs and reduce greenhouse gas
Europe’s offshore capacity: the United Kingdom (42%), Germany emissions.167 In early 2021, the 0.8  GW Vineyard Wind project
(31%), the Netherlands (10%), Belgium (9%) and Denmark (7%).160 (Massachusetts) was granted final federal approval.168
The year brought a record EUR 26.3 billion (USD 32.3 billion) of By the end of 2020, 18 countries (12 in Europe, 5 in Asia and 1 in North
financing for 7.1  GW of future capacity (including transmission America) had offshore wind capacity in operation, unchanged from
infrastructure) off the coasts of the United Kingdom, Germany 2019.169 The United Kingdom maintained its lead for total capacity
and France; this is up from EUR  6  billion (USD  7.37  billion) in (10.4 GW), followed by China (10 GW), which overtook Germany
2019.161 In 2020, several countries increased their future targets (7.7 GW), the Netherlands (2.6 GW) and Belgium (2.3 GW), both
for offshore wind power capacity, including the United Kingdom of which overtook Denmark (1.7 GW) in 2020.170 Europe was home
(boosted its 2030 target from 30 GW to 40 GW) and Germany to around 70% of global offshore capacity (down from 75% in 2019
(increased its 2030 target from 15 GW to 20 GW).162 As of early and 79% in 2018), with Asia (mostly China) accounting for nearly
2021, total government commitments for offshore wind power by all the rest.171 (p See Figure 36.) Around the world, an additional
2030 reached 111 GW.163 82  GW of offshore capacity was under construction, had been
Targets also were increased in the United States, with six eastern approved through regulatory processes or had reached financial
states aiming to bring online a combined 28.1  GW of offshore close.172 Global capital expenditures committed to offshore wind
wind power capacity by the 2030-2035 period.164 By early 2020, power surpassed investments in offshore oil and gas for the first
state procurement commitments totalled 28.9 GW, and another time in 2020.173

i This proof-of-concept project was a step towards development of a 2.6 GW project in the same area, scheduled to be brought online in phases between 2024 and 2026.

FIGURE 36.
Wind Power Offshore Global Capacity by Region, 2010-2020

35
Gigawatts
35
35 World
Gigawatts Total
30 Rest of World 29
China
25 Europe 23

20 18.7

14.2
15
11.9
10 8.5
6.8
5.2
5 3.9
2.9

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note: Totals above 20 GW are rounded to nearest GW. Rest of World includes the rest of Asia as well as North America.
Source: See endnote 171 for this section.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

The decommissioning of tenders in some countries; and the lack of available land with good
wind turbines that had The pandemic added to wind resources.182 Permitting delays also have been prevalent, due
reached the end of their existing challenges, but in some cases to local opposition as the number of participants
service life, or were
ripe for refurbishment several declines and the size of developers and the scale of projects increase;
in 2020, delays worsened as government staff was reassigned
on economic grounds,
totalled an estimated
developments to pandemic-related matters.183 In another ongoing challenge,
downward pressure on bid prices in some markets is affecting
0.5  GW in 2020, across fed hope manufacturers and developers, even as a lack of investment and
10 countries.174 In Europe, for the year to come. competition in other markets has driven bid prices up.184
seven countries decom­
In several countries, governments responded by extending
missioned almost 0.4 GW
deadlines to account for pandemic-related delays.185 By the end
of capacity, all of it
of 2020, new policy commitments had helped stimulate record
onshore, led by Germany (222  MW), Austria (64  MW) and
investments in new projects.186 The year saw new entrants
Denmark (62  MW), with smaller amounts in Belgium, France,
(including fossil fuel companies) to the wind power sector, and
Luxembourg and the United Kingdom.175 The United States
wind turbine manufacturers and developers expanded further into
decommissioned around 74 MW of capacity, with the remainder
removed from operation in Japan and the Republic of Korea.176 new sectors.187 The industry continued to better integrate wind
Decommissioning does not necessarily mean the end of a project, energy into existing electricity grids and to improve technologies to
but can pave the way for repowering with more advanced and increase output and further reduce the cost of energy.188
efficient technology; some of the decommissioned projects were By one estimate, from the second half of 2019 to the same period
repowered. (p See Industry section below.) in 2020, the global benchmark levelised cost of energyi (LCOE)
from new wind power projects fell 17% onshore (to an average
WIND POWER INDUSTRY USD 41 per MWh) and 1% offshore (USD 79 per MWh).189 Cost
reductions are the result of several factors, including more
Even as the global market expanded and several countries had a
powerful and efficient turbines that can capture more wind and
strong year, the global wind industry continued to face perennial
economies of scale with larger projects, which reduce per unit
challenges that were exacerbated by the pandemic. Nonetheless, a
costs of installation, operation and maintenance.190
number of developments fed hope for the year to come, including:
remedial policy adjustments in several countries, ongoing Auctioned capacity in 2020 was down 26.5% relative to 2019 but
technology development and innovations, growing attention to reached the second highest level on record, with a global total of
climate change mitigation and wind energy’s potential role, and 35 GWii (including 33.7 GW onshore).191 Activity plummeted early in
increasing interest among industry actors and governments in the year, due mainly to pandemic-related postponements in some
advancing floating wind technologies and green hydrogen. key markets, but increased over the second half of 2020 relative
Particularly early in the pandemic, the wind industry was affected to the same period in 2019.192 China accounted for two-thirds of
by restrictions on movement of labourers and supplies.177 the total wind power capacity auctioned and awarded, with most
Turbine assembly generally requires components produced in of this for onshore projects to be built without direct government
numerous countries around the globe, and lockdowns disrupted support.193 Thirteen other countries or regions held wind-specific
supply chains.178 Restrictions also slowed project permitting or renewable energy auctions, including several in Europe as well
and development (particularly onshore), which was especially as Ecuador, India and the US state of New Jersey.194
challenging for developers racing to complete projects before Resultsiii from auctions vary widely depending on local conditions
support policies changed or expired at year’s end, or before fixed and costs, project scale and other factors.195 For example, Europe’s
commissioning deadlines.179 Short-term declines in electricity winning onshore bids during 2020 were in the range of EUR 42.4
demand and prices led asset owners to reduce operation and to EUR  69.2 (USD  52 to USD  85) per MWh, compared with
maintenance (O&M) budgets; these downward trends also EUR 21 to EUR 67 (USD 25.8 to USD 82.3) per MWh in 2019.196
adversely affected demand for turbines and new projects and While declining costs and fierce competition in auctions and
curtailed access to financing for onshore wind, which slowed the tenders have driven down average bid prices in many markets,
signing of PPAs and investment in new onshore projects.180 The bids have been stable or even rising in others. Relative to earlier
result was reduced margins for turbine manufacturers (suppliers of auctions, prices for onshore wind power in 2020 were down
both machines and, increasingly, O&M).181 significantly in France and Greece.197 In contrast, prices were up
These troubles all added to existing challenges, including: the in Italy, where all three auctions for solar PV and wind power
lack of grid access and unreliable grid systems; poorly designed were undersubscribed, due in part to permitting challenges.198

i Note that energy costs vary widely according to wind resource, project and turbine size, regulatory and fiscal framework, the cost of capital, land and labour,
exchange rates and other local influences.
ii Unless noted otherwise, mentions of auctions and tenders as support mechanisms presume wind technology-specific tenders or those specific to renewables in
general. Technology-neutral tenders (open to non-renewables) do not constitute a support mechanism, although such tenders can and do draw successful bids
from renewable energy developers.
iii Note that bid levels do not necessarily equate with costs. Bid levels differ from market to market due to varying auction designs, policies and risks, among
other factors.

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 03

In Germany, winning bid levels for onshore capacity were fairly Wind project, due for commissioning in 2025; the levelised price
stable through the year, but remained higher than at auctions over 20 years was USD 58.47 per MWhi (13% below the levelised
in 2017 and early 2018, and above the statutory tariffs under the price of the relatively nearby Vineyard Wind project in 2018),
country’s previous Renewable Energy Act.199 setting a new benchmark for US offshore wind. 210
In India, several wind tenders in recent years resulted in The wind industry has seen more than 100 turbine suppliers
relatively low levels of competition, as policy, regulatory and over the years, with a peak of 63 suppliers reporting installations
market uncertainty have shifted the sector towards developers during 2013; the number has declined rapidly since 2015, with 33
with greater risk-taking capacity. 200 The inconsistent regulatory in 2019, but might have climbed slightly in 2020, due to the rush of
environment and lack of suitable sites in most Indian states for installations in China. 211 The six leading manufacturers captured
wind power project development have contributed to the rise 75% of the capacity installed in 2020 (up from 64% in 2017). 212
in wind tariffs since 2017 and helped to increase the relative The top six turbine suppliers in 2020 were Vestas (Denmark), GE

MARKET AND INDUSTRY TRENDS

attractiveness of solar PV. 201 Renewable Energy (GE, US), Goldwind, Envision (both China),
In the offshore sector, the Netherlands held its third tender for Siemens Gamesa (Spain) and Mingyang (China), together
which the winning project (due online by 2023) will receive only accounting for more than 63 GW of installations. 213 Vestas stayed
the wholesale price of electricity and will pay an annual rent for on top for the fifth consecutive year, GE delivered record global
seabed rights. 202 The winning consortium of Shell and Eneco volumes and benefited from a strong home market – as did
plans to build a 759 MW project that will include floating solar Goldwind (which also suppled more than 1  GW of turbines for
PV and battery storage, and to use the electricity generated to overseas markets for the first time), Envision and Mingyang – and
produce hydrogen. 203 Offshore wind tenders also were held in Siemens Gamesa dropped from third in 2019 to fifth in 2020, but
the US state of New Jersey (bid price pending as of early 2021) led the offshore market. 214 Chinese manufacturers took 10 of the
and France, where the winner of a tender for 1 GW off the coast of top 15 places, thanks to the dramatic increase in China’s onshore
Normandy is expected to be announced in 2022. 204 installations; the role of most Chinese firms beyond the domestic
In some countries where auctions are putting growing price market remains limited. 215
pressure on markets, direct PPAs are becoming increasingly Senvion (Germany) and Suzlon (India), both among the top 10 in
important. 205 In Brazil, for example, returns to developers can be 2017, and Germany’s Enercon (eighth in 2019), all continued to
higher through PPAs than in national electricity auctions. 206 struggle due to declining sales in their home markets. 216 Even top
PPA prices trended upwards in Europe through most of 2020 manufacturers suffered losses for the year, closed factories and
but generally declined in the fourth quarter. 207 In the United laid off workers, despite selling more turbines (by capacity), as
States, prices under PPAs for onshore wind power capacity rose the highly competitive market combined with pandemic-related
throughout 2020, with steeper increases starting in the second costs and delays to further squeeze profit margins. 217 Both Vestas
and GE reported that their orders for new turbines had fallen
quarter; the pandemic was among the factors driving up prices,
slightly relative to 2019. 218 Legal battles among manufacturers
in addition to grid connection delays, permitting challenges and
escalated in 2020 and into 2021 over intellectual property as they
the fact that the windiest sites with easy grid access have already
sought to maintain or gain control over key markets. 219
been developed. 208 This increase followed a steady decline in US
average PPA prices since 2009. 209 In the offshore segment, in To further diversify their portfolios in key markets, wind power
early 2020 developers signed PPAs with six utilities in the US developers and turbine manufacturers continued expanding
state of Massachusetts for electricity from the 0.8 GW Mayflower into new sectors during 2020. 220 Ørsted (Denmark), the largest

In some countries where

auctions put growing price
pressure on markets,

direct PPAs
are becoming increasingly
important.

i The combined price for electricity and renewable energy credits under the Mayflower Wind project will come to USD 77.76 per MWh on a nominal levelised
basis for the two phases of the project. See American Clean Power Association, ACP Market Report – Fourth Quarter 2020 (Washington, DC: 2021), p. 16,
https://cleanpower.org/resources/american-clean-power-market-reportq4-2020.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

offshore wind developer and operator, took the final investment should allow for larger bases and thus taller hub heights to
decision in late 2020 to develop a large solar PV project in the US capture stronger winds, while also reducing transport-related
state of Texas under a long-term PPA, bringing the company’s costs and challenges. 232
solar portfolio to 1.1  GW under construction. 221 Chinese turbine The world’s then-longest blade – LM Wind Power’s 107 metre
manufacturers are turning to solar PV and other avenues to
blade – was certified for use in November 2020. 233 The move
diversify their business as national subsidies are phased out. towards ever-longer blades for use onshore and offshore has
Mingyang, for example, has developed a solar and financing lease affected supply chain strategies, including the increasing
business, while Goldwind has expanded into water treatment, outsourcing of production. 234 Even so, the number of blade
and Envision acquired Automotive Energy Supply Corporation suppliers declined by about one-third from 2016 to 2020 as small-
(Japan) to move into energy storage and batteries. 222 and medium-sized manufacturers were unable to compete on
Manufacturers also focused on technology innovation, building R&D investment, costs and global presence. 235 In 2020, both
largely on existing concepts. 223 The fact that nearly all major GE and Siemens Gamesa closed blade manufacturing facilities
wind power markets are auction driven (including new, emerging to cut costs and because of the facilities’ inability to handle
markets) has pressured the industry to continuously reduce costs larger blades and the falling demand for the smaller blades they
and achieve the lowest possible levelised cost of energy. 224 One produced. 236
ensuing trend in recent years has been a move to turbines with In 2020, the average size of turbines delivered to market was 2%
lower specific power (the ratio of capacity to rotor swept area). This larger than in 2019 (2.76 MW), at 2.81 MW (2.7 MW onshore and
results in less energy production per square metre of rotor area 6.0 MW offshore). 237 In late November, the last of 77 MHI Vestasi
but offers several benefits that help reduce the LCOE, including 9.5 MW turbines – the largest turbines installed thus far – was
lower generator costs and savings on other components, as well installed at a site off the Dutch coast. 238 Just one of these turbines
as higher capacity factor and reduced variability of output, which has nearly as much power capacity as the combined total of the
lowers balancing costs and can increase the value of the turbine’s first two offshore wind farms, off the coast of Denmark. 239
generation to the grid system. 225
Turbines are set to get only larger as manufacturers race to build
Turbines for use onshore and offshore continued to get larger
the biggest and most powerful units, especially for offshore use.
and taller during 2020, enabling them to capture more energy
In 2020, GE increased the power rating of its Haliade-X prototype
from the wind to make wind-generated electricity economical in
to 13 MW, and later boosted it to 14 MW for use in the UK’s Dogger
more locations. 226 Onshore turbines in the 5 to 6-plus MW range
Bank wind farm, with installation set to begin in 2025. 240 Siemens
were introduced by GE, Nordex (Germany), Siemens Gamesa,
Gamesa released a 14 MW turbine that can be boosted to 15 MW
and Vestas, and Mingyang launched a 6.25  MW machine. 227
and should be commercially available starting in 2024. 241 By mid-
Several companies also launched new smaller machines for low-
2020, several Chinese manufacturers had entered the fray, with
wind sites, including those targeted to wind conditions in specific
Dongfang commissioning a 10  MW prototype and Mingyang
markets. 228 Goldwind was working on new turbines for low- and
announcing an 11  MW hybrid drive (the world’s largest), which
medium-wind speeds (both onshore and offshore) and new
it expects will be commercially available in 2022. 242 Not to be
hybrid tower concepts to further reduce the LCOE as China’s
left behind, Vestas became the first to launch a 15 MW turbine
FITs come to an end. 229
(upgradable to 17 MW) in early 2021. 243
Taller turbine towers and longer blades have affected everything
from design to manufacture, transport and installation (and related
costs). 230 To address the challenges associated with transporting
taller towers, Nordex launched a facility in Spain (the company’s
12th such factory) based on a mobile concept that enables
concrete towers to be produced and assembled locally, reducing
logistics costs as well as transport distances. The facility can be
dismantled and reassembled in new locations. 231 GE announced
a partnership with a robotics firm and a building manufacturer
to develop 3-D printed
concrete bases for on-site
Larger, taller wind turbines
production of turbine
are able to capture more
towers. The process
energy, making wind-
generated electricity

economical
in more locations.

i Note that Vestas acquired Mitsubishi Heavy Industry’s (MHI) shares in MHI Vestas in late 2020, and the company was integrated back into Vestas.
See endnote 238 for this section.

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 03

Offshore developers are taking advantage of larger turbines as 125 GW of renewables capacity by 2030, with much of this being
soon as they become available, with several orders placed for offshore wind power. 254
these mega-turbines during 2020. 244 Larger, higher-efficiency Among developments in 2020, Total (France) made its first major
turbines mean that fewer turbines, foundations, converters, investments in offshore wind power, acquiring stakes in projects
cables, less labour and other resources are required for the same in UK waters and announcing plans to develop a 2.3 GW floating
output, translating into faster project development, reduced risk, project off the Republic of Korea, and Eni (Italy) also entered the
lower grid-connection and O&M costs, and overall greater yield, UK market, acquiring 20% of the UK Dogger Bank project. 255
all particularly important for the offshore sector. 245 Both Equinor (Norway), a pioneer in floating wind technology, and
Floating turbines offer the potential to expand the areas where Neoenergia (Spain) were looking at the possibility of developing
offshore wind energy is viable and economically attractive offshore wind projects in Brazil, and Equinor and BP (UK) partnered
because they can be placed where winds are strongest and to develop offshore wind capacity in the United States. 256 Shell
most consistent, rather than where the sea-floor topography is (Netherlands) is partnering on several offshore projects, and

MARKET AND INDUSTRY TRENDS

suitable. 246 Costs are about double those of fixed bottom turbines (along with German utility Innogy) is a major backer of the Steisdal
but continue to fall as technologies advance, and the sector is TetraSpar, a new floating foundation that promises easier assembly
ready for full commercialisation. 247 In late 2020, an MHI Vestas and installation, and thus lower costs. 257 Also, Australian oil and gas
(now Vestas) 9.5 MW turbine became the largest yet installed for explorer Pilot Energy announced plans to undertake a feasibility
use in a floating project, off the coast of Scotland. 248 study into a 1.1 GW project off the coast of Western Australia as
Throughout 2020, several major wind power developers – part of its effort to diversify beyond fossil fuels. 258
including Enel (Italy), Equinor (Norway), Ørsted, RWE (Germany) Several Asian and European utility companies have begun
and Vattenfall (Sweden) – unveiled plans to produce hydrogen moving into offshore wind power technology and project
or methane with wind energy. 249 In addition, Siemens Gamesa development, especially in the floating sector. 259 In 2020, two of
and spin-off Siemens Energy were developing an offshore India’s largest fossil fuel and electricity companies partnered to
turbine with a fully integrated electrolyser to produce hydrogen develop renewable energy projects, including offshore wind. 260
directly. 250 Several oil and gas companies also announced plans Offshore wind is not without its challenges. There are concerns
or launched partnerships to develop hydrogen projects linked to that the offshore sector is growing so quickly – in the number
offshore wind power. 251 of projects and the scale of turbines – that it will outpace the
As offshore wind power has advanced (and particularly floating number, size and ability of installation vessels to transport and
technologies), major oil companies have begun investing large lift large components. 261 As of late 2020, only four vessels were
and growing amounts of money into the sector, which is one capable of handling the next generation of offshore turbines,
of the areas (in addition to geothermal) where the skill and such as GE’s Haliade-X. 262 In addition, new offshore markets still
knowledge transfer from oil to renewable energy is most clear. 252 face challenges that Europe and China have addressed, including
As of early 2021, oil majors accounted for only 5% of offshore developing supply chains, a trained workforce and associated
capacity in operation, but from early 2019 to March 2021 they won infrastructure such as ports, rail links and grid infrastructure. 263
about half of offshore wind power tenders awarded outside of The United States, for example, had no offshore wind factories
China. 253 European oil majorsi have a combined target of at least as of 2020; however, at least six states were competing during

i Excludes Shell, which did not have a stated target as of early 2021.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

the year to host them, announcing plans to build manufacturing solutions for recycling and reusing their composite materials,
facilities and to transform ports and marine terminals into hubs and on developing blades with entirely different materials. 273
for an offshore wind industry, and some states announced plans Related developments in 2020 and early 2021 included: GE signed
to start training workers. 264 a contract with Veolia North America to use decommissioned
Around the world, and particularly onshore, major manufacturers blades as raw material in place of coal, sand and clay for cement
are focused increasingly on the repoweringi segment. 265 production; the DecomBlades consortium (Denmark) launched
Historically, repowering has involved the replacement of old to find sustainable recycling solutions for composite materials
turbines with fewer, larger, taller, and more efficient and reliable in blades; a consortium of 10 companies and technical centres
machines at the same site, but increasingly operators are launched the Zero wastE Blade ReseArch (ZEBRA) project
switching even relatively new machines for larger and upgraded in Europe to develop the world’s first fully recyclable blade of
turbines (including software improvements) or are replacing thermoplastic resin; and US researchers validated the structural
specific components (partial repowering). 266 Bigger blades, integrity of thermoplastic composite blades, determining that
new rotors and improved mechanics all can boost efficiency they could be more efficient and robust, manufactured on site,
and provide better monitoring of wind speed and direction, and the material could be melted and reused. 274
increasing output by 10% or more, and without the challenges of An increasing number of manufacturers also are focused on
interconnection and permitting hurdles. 267 making wind turbines sustainable in their production as well as
In the United States, project owners partially repowered 2.9 GW at end of life, and trying to do so in a way that is cost effective in
at existing projects in 2020, slightly below 2019 levels but 130% order to remain competitive. 275 After achieving its 2019 goal to
above 2018 levels. 268 Repowering in the country was driven by the become carbon-neutral in early 2020, Siemens Gamesa turned
looming expiration of the federal PTCii at year’s end (later extended its attention to its international supply chain. 276 Also in 2020,
in December) and by the significant technology improvements Vestas (which achieved 100% renewable electricity in 2013)
of recent years. 269 Repowering increased somewhat in Europe joined RE100 and set a target to become carbon neutral by 2030
(345 MW) through projects in Germany (339 MW) and smaller through its own corporate actions; Vestas also announced plans
amounts in Greece, Luxembourg and the United Kingdom. 270 to eliminate non-recyclable waste from manufacturing, operating
Repowering in China has been limited to date. 271 and decommissioning of its wind turbines by 2040. 277 Early in
2021, Envision committed to achieving carbon neutrality for its
As the earliest fleets of wind turbines reach retirement age, and
operations by 2022 and for its value chain by 2028. 278
components are replaced, concerns are increasing about what
to do with turbines and components at the end of their life. p See Box 7 for developments in the small-scale wind power
Although most of a turbine can be used on another wind farm sector.279 Also see Sidebar 6 on the following pages for a summary
or recycled, blades are made of complex composite materials of the main renewable energy technologies and their characteristics
that are difficult and expensive to recycle. 272 Efforts have focused and costs.280
on repurposing old blades (e.g., as sound barriers) or developing

An increasing number of
manufacturers are focused on
making wind
turbines
sustainable
in production as well as at
end of life.

i Repowering refers to the process of replacing turbines within an existing wind farm with newer turbines. If the majority of components (including foundation)
are replaced, a project is considered repowering; replacement of only specific components is consider partial repowering. See endnote 265 for this section.
ii Repowering a project enables owners to reset the clock on 10 years’ worth of US federal tax credits, encouraging the replacement of parts of existing turbines
well ahead of the end of their original life expectancies. Looming expiration of the tax credit drove increased activity. See endnote 269 for this section.

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 03

BOX 7. Small-scale Wind Power

Small-scalei (up to 100  kW) wind turbines are used for a key export markets largely dried up due to reduced or
variety of on- and off-grid applications, including defence, discontinued feed-in tariff programmes. US domestic sales
rural electrification, water pumping and desalination, rose slightly in 2019 (from 1.1 MW in 2018 to 1.2 MW in 2019)
battery charging, telecommunications and to displace diesel as imports fell; but domestic small-scale turbine sales were
in remote locations. The annual global market continued well below their annual totals early in the decade.
to shrink in 2019 (latest data available) in response to
At least in the United States, however, things were looking up
onerous local permitting and planning laws, inconsistent
in 2019 and early 2020 with evidence that a 2018 extension of
policy support as well as unfavourable policy changes (e.g.,
the federal investment tax credit for small-scale wind power,

MARKET AND INDUSTRY TRENDS

introduction of market caps, removal of incentives), and
combined with public research and development (R&D)
ongoing competition from relatively low-cost solar PV.
funding to improve competitiveness, could enable small and
By one estimate, 42.5  MW of new small-scale wind power distributed wind power to turn the corner in the country.
capacity was installed in six countries during 2019, down from US R&D efforts also were under way to make wind power
an estimated 47 MW in 2018 and 114 MW in 2017. Due to a lack technology a plug-and-play component in hybrid systems
of data, these estimates do not include off-grid systems even and microgrids, among other options.
in large markets, or installations in additional countries. At the
Italy, which has been an important market in past years, also
end of 2019, more than 1 million small-scale turbines (totalling
received a boost from a new FIT incentive that was enacted
at least 1.7 GW) were estimated to be in operation worldwide.
in mid-2019. Following a decline in total capacity due to
China continued to be the largest market with an estimated decommissioning (8.2 MW in 2018 and 2.6 MW in 2019), an
23 MW installed in 2019, down from 30.7 MW in 2018. Japan estimated 8  MW of new small-scale wind power capacity
added 17  MW, followed distantly by the United States with was installed in the first half of 2020.
1.4  MW, a 7% annual reduction that continued the country’s
Elsewhere, the small-scale wind sector is seeing the
downwards trend in small-scale turbines; much of the new
emergence of several start-up companies, including
US capacity was for retrofit projects. Other important markets
Diffuse Energy (Australia) and Alpha 311 Ltd (UK), which
included Germany (0.5  MW), the United Kingdom (0.4  MW)
manufactures vertical-axis turbines that are attached to
and Denmark (0.2 MW).
existing light posts located near roads or rail lines. New uses
Markets declined during 2019 in all of these countries except for small-scale turbines under consideration or development
Japan, where installations were up nearly 32% over the include mining, small microgrids and data centres.
previous year. By June 2020, Japan had more than 5,000
projects (108  MW) approved under a new FIT system, and i Small-scale wind systems generally are considered to include turbines
that produce enough power for a single home, farm or small business
only a small portion of these was already in operation.
(keeping in mind that consumption levels vary considerably across
In response to shrinking domestic markets, the number of countries). The International Electrotechnical Commission sets a limit
at around 50 kW, and the World Wind Energy Association and the
producers of small-scale wind turbines in China and the American Wind Energy Association as well as the US government
United States has declined sharply in recent years, with define “small scale” as up to 100 kW, which is the range also used in
the GSR; however, size varies according to the needs and/or laws
manufacturers relying heavily on export markets, which also of a country or state/province, and there is no globally recognised
have been in decline. US-manufactured exports, for example, definition or size limit.
fell below 0.5  MW in 2019, down from 2015 (21.4  MW), as Source: See endnote 279 for this section.

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 RENEWABLES 2021 GLOBAL STATUS REPORT

SIDEBAR 6. Renewable Electricity Generation Costs in 2020

Renewable power costs continued to decline in 2020, keeping Cost reductions for onshore wind were driven by declining
with trends from the past decade. The mature technologies turbine prices and by reductions in balance-of-plant costs and
such as hydropower, bio-power and geothermal, typically are operation and maintenance costs. At the same time, costs have
dispatchable and low-cost power sources, and are competitive been reduced through continued improvements in wind turbine
in regions where unexploited resources exist. However, technology (e.g., larger turbines, higher hub heights and larger
the decade was notable for the rapid improvements in the swept blade areas), wind farm siting and reliability that have
competitiveness of solar and wind power technologies. led to an increase in average capacity factors, with the global
The levelised cost of electricity (LCOE)i of utility-scale solar PV weighted average rising from 27% in 2010 to 36% in 2020iv.
fell 85% between 2010 and 2020, from USD  0.381 per kWh to For offshore wind, the LCOE of newly commissioned projects
USD 0.057 per kWh. (p See Figure 37.) Over the decade, utility- fell 48% from USD 0.162 per kWh in 2010 to USD 0.084 per kWh
scale solar PV became competitive with the lowest-cost new in 2020. Annual values for the global weighted average total
fossil fuel-fired capacityii. Cost declines were driven primarily by installed costs, capacity factors and LCOE are relatively volatile
falling module prices and reductions in balance-of-systemiii costs, given the small number of projects added in some yearsv.
which tumbled between 2010 and 2020 as module efficiency From 2010 to 2020, total installed costs fell around 32%, while
improved and manufacturing was scaled up and optimised. As capacity factors increased from 38% in 2010 to 42% in 2019,
a result, the total installed cost of utility-scale solar PV fell 81% before dropping back to 40% in 2020. The drop in the global
over the decade. weighted average capacity factor in 2020 was driven by new
The LCOE of onshore wind power fell 54% between 2010 and plants being commissioned mainly in China, where offshore
2020, from USD 0.089 per kWh to USD 0.041 per kWh. The total wind farms still predominantly use smaller offshore wind turbine
installed cost of newly commissioned onshore wind projects fell designs and are in areas with lower-quality wind resources (e.g.,
from USD 1,970 per kW to USD 1,355 per kW during the decade. inter-tidal or near shore).

i All references to LCOE and total installed costs in this sidebar are global weighted averages. Note also that costs are very location- and project-specific,
and cost ranges can be substantial; the LCOEs presented here should be considered in the context of the country- and region-specific project cost ranges
outlined in International Renewable Energy Agency (IRENA), Renewable Power Generation Costs in 2020 (Abu Dhabi: 2021), which provides further details
on the LCOE methodology.
ii The fossil fuel-fired power generation cost range varies by country and fuel, but overall is estimated at between USD 0.055 per kWh and USD 0.148 per kWh.
The lower bound represents new coal-fired plants in China.
iii Balance-of-system and balance-of-plant costs encompass the full project costs, including labour, hardware, permitting, grid interconnection, etc.
iv The global weighted average capacity factor for newly commissioned onshore wind projects in 2020 reported here is uncertain given that the geographic
distribution of new capacity connected to the grid in China in 2020 was not available when the analysis was undertaken.
v The growth in new markets in recent years, both within Europe (where offshore wind's first markets developed) and globally, have made year-on-year cost
comparisons difficult.

160
 03

The LCOE of concentrating solar thermal power (CSP) fell 68% Between 2010 and 2020, the LCOE of bio-power projects was
from USD 0.340 per kWh to USD 0.108 per kWh between 2010 volatile. By the end of the decade, it had remained at around
and 2020. These costs declined into the middle of the range of the same level as in 2010 at USD 0.076 per kWh – still at the
the cost of new capacity from fossil fuels despite only several lower end of the cost of electricity from new fossil fuel-fired
projects being commissioned in recent years. Similar to solar PV, projects.
the decline in the cost of electricity from CSP has been driven by
For the same period, the LCOE of hydropower rose 16%, from
reductions in total installed costs. Yet, technology improvements
USD  0.038 per kWh to USD  0.044 per kWh. This was still
that have spurred improved economics of thermal energy
lower than the cheapest new fossil fuel-fired electricity option,
storage also have played a role in increasing capacity factors.

MARKET AND INDUSTRY TRENDS

despite the 10% year-on-year increase in costs in 2020.
For bio-power, geothermal and hydropower, the installed
The global weighted average LCOE of geothermal has ranged
costs and capacity factors tend to be project specific. This,
between USD 0.071 per kWh and USD 0.075 per kWh since
coupled with different cost structures in different markets,
2016. The LCOE of newly commissioned plants ended up at
results in considerable year-to-year variability in global
the lower end of this range in 2020 at USD  0.071 per kWh,
weighted average values, particularly when deployment is
having declined 4% year-on-year.
relatively thin and the share of different countries or regions
in new deployment varies significantly.

FIGURE 37.
Global Levelised Costs of Electricity from Newly Commissioned Utility-scale Renewable Power Generation
Technologies, 2010 and 2020
2020 USD/kWh

   


 





0.4
95th percentile
0.381



0.3 Average cost

- 85 % -68 % -54% -48 % 5th percentile

0.2




0.108 
0.1
 
0.084 
0.057
0.039

0
2010 2020 2010 2020 2010 2020 2010 2020

Source: IRENA. See endnote 280 for this chapter.

161
04
Oorja – a company working at the intersection between agriculture and clean energy –
finances and installs distributed solar energy systems for farming purposes.
 04

04
DISTRIBUTED
RENEWABLES FOR
ENERGY ACCESS

INTRODUCTION
KEY FACTS istributed renewables for energy accessi (DREA) play
D an increasingly important role in delivering energy
access in developing countries, providing electricity
  By the end of 2019, 90% of the global population to between 5% and 10% of the population in several countries.1
had access to electricity, although one-third (p See Figure 38.) These systems deliver a wide range of
still had to cook with polluting fuels. Only 4% services, including electricity for lighting, appliances, productive
of people living in rural sub-Saharan Africa had uses, cooling, irrigation and water pumping, as well as energy for
access to clean cooking solutions. cooking and heating.

  Sales of off-grid solar systems fell 22% in 2020, Renewables-based electric power systems have proven
valuable in rural and peri-urban communities that are difficult
as businesses were affected by the effects of
or costly to reach through grid electrification programmes.
the COVID-19 pandemic such as lockdowns,
Distributed renewables can provide affordable electricity access
supply chain issues and economic downturn.
that can be scaled up over time, powering not only households
Sales improved in the second half of the year. but also businesses and community services, such as health
  Financing for off-grid solar companies increased care and education. In recent years, solar photovoltaics (PV) has
slightly by around 1%, with a much larger shift become the technology of choice for off-grid electricity access,
but many other renewable access solutions are in place (for
from equity finance to debt and grant funding.
example, mini-grids based on mini-hydropower or small wind
  While many mini-grid projects were delayed, in turbines to power households).
several countries new solar mini-grids were
commissioned specifically to power healthcare
facilities as an emergency response to COVID-19.
  Overall, clean cooking continues to attract
only a fraction of the estimated funding needed
to achieve universal access; however, 25 clean
cooking companies were able to raise
USD 70 million in 2019, a 63% increase i See Sidebar 9 in GSR 2014 for more on the definition and conceptualisation
compared to the 32 companies that raised of DREA. Note that since 2018 the GSR has used the terminology “distributed
renewables for energy access” to distinguish from “distributed renewable
USD 43 million in 2018. energy” (DRE) that has no link to providing energy access.

163
 RENEWABLES 2021 GLOBAL STATUS REPORT

FIGURE 38.
Top 7 Countries with the Highest Electricity Access Rate from Distributed Renewable Energy Solutions, 2019

Share of population...
Nepal 9.7%
...connected to
hydropower mini-grids
Rwanda 9.0%
...connected to
Mongolia 7.7% solar PV mini-grids
...using solar home systems
(>50 W)
Kenya 6.8%
...using solar home systems
(11-50 W)
Vanuatu 6.2%

Fiji 6.1%

Bangladesh 5.0%

0% 2% 4% 6% 8% 10%

Note: Data in figure include solar home systems and mini-grids but exclude solar lights.
Source: See endnote 1 for this chapter.

Providing clean cookingi remains the biggest energy access whereas in urban areas, electricity, liquefied petroleum gas (LPG)
challenge and has seen the least progress in recent years. Many and ethanol are most frequently used. While a switch to LPG
people in the developing world have little choice than to cook has improved health outcomes in many countries, clean cooking
using traditional biomass systems, such as indoor open fires or ultimately needs to align with decarbonisation objectives.4
inefficient cook stoves. This results in high levels of household air Cooling is a critical aspect of the provision of modern energy
pollution with serious health impacts that fall disproportionately services. Without access to sustainable coolingii, labour
on women. 2 Clean cooking solutions exist but are not always productivity often remains low, agricultural produce goes to
available or affordable. 3 In off-grid settings, renewables such waste, and health care is compromised (for example, vaccine
as biogas and improved biomass cook stoves can play a role, storage is not possible). 5 In the rural areas of many developing
countries, lack of electricity access is the main reason for the
lack of cooling, whereas in urban areas the key factors are a poor
standard of housing and the intermittency of electricity supply.6
Distributed renewables can enable the use of cooling, especially
when combined with efficient appliances.
The coronavirus pandemic has led to renewed focus on the
importance of energy access. Evidence has emerged about the
links between long-term exposure to particulate matter from
air pollution and the risk of mortality from COVID-19.7 As the
crisis has progressed, the challenges of health care and vaccine
roll-out in the absence of reliable access to electricity have
become increasingly clear. 8 (p See Box 8.) Renewables-based
energy systems have been highlighted as offering solutions to
these energy access problems, as well as providing economic
opportunities during the recovery phase. 9

i As per the guidelines of the World Health Organisation for indoor air quality linked to household fuel combustion, access to clean cooking facilities means access
to (and primary use of) modern fuels and technologies, including natural gas, liquefied petroleum gas (LPG), electricity and biogas, or improved biomass cook
stoves that have considerably lower emissions and higher efficiencies than traditional three-stone fires for cooking.
ii Sustainable cooling includes efficient fans, air conditioners, refrigerators and other cold storage, ideally run on renewable electricity. In addition, it covers
measures to reduce the need for cooling through insulation, shading, reflectivity or ventilation.

164
 04

BOX 8. Energy Access, Health and COVID-19

A lack of access to modern energy services has implications vaccine alliance GAVI has been investing in solar direct-
for health and the provision of medical services. Cooking drive refrigerators, which can store vaccines at constant
with polluting fuels has been linked to 4  million premature temperatures using ice banks instead of batteries. These
deaths from illnesses such as chronic obstructive pulmonary refrigerators have already been transformative in remote and
disease, and people with these diseases also are at higher under-immunised areas. While they are not able to operate
risk of severe cases of COVID-19. At the same time, a lack at the very low temperatures that some COVID-19 vaccines
of electricity access greatly restricts the available treatment require, they are suitable for vaccines that only need to be
options for COVID-19 and other diseases. Crucial equipment stored at ordinary fridge temperatures. Cold storage during
such as ventilators and oxygen generators require constant transport is also crucial, and innovations such as cool boxes
electricity to function, but 60% of healthcare facilities in 46 with solar-powered batteries can provide a solution for
middle- and low-income countries lack a reliable power transport to remote locations.
supply. In rural areas of sub-Saharan Africa, there is often no In response to the COVID-19 pandemic, many donor
electricity at all. programmes have allocated funds to support the

DISTRIBUTED RENEWABLES
FOR ENERGY ACCESS
Reliable electricity is essential for vaccine storage, and electrification of health services. For examples, Power
all of the COVID-19 vaccines that are approved or under Africa, funded by the US Agency for International
development require refrigeration, some as low as minus 70 Development (USAID), redirected programme funds to
degrees Celsius. Solar-powered vaccine refrigerators have provide USD  2.6  million in grants to off-grid companies for
been available since the 1980s but often fail due to short electrification of rural and peri-urban health clinics.
battery lifetimes or lack of regular maintenance. The global Source: See endnote 8 for this chapter.

OVERVIEW OF ENERGY ACCESS clean cooking options.19

The assessment of clean After seven consecutive
Globally, billions of people continue to lack access to modern cooking progress is years of improvements,
energy services. The biggest deficit is in clean cooking, with a constrained by data lim- the number of people

without access
third of the world’s population, or 2.6 billion people, still relying itations. 20 In September
on polluting fuels (mostly traditional use of biomass) in 2019.10 2020, new data on the
The trend for electricity access has been more positive, with state of access to modern to electricity in Africa
90% of people globally having access to electricity in 2019, up energy cooking services was estimated to have
from 80% in 2010.11 However, modelling data for 2020 suggest provided a more granular increased in 2020.
that this trend may have reversed due to the pandemic; in Africa, assessment than was
2% fewer people had access to electricity in 2020.12 available previously. 21
Progress in clean cooking remains slow and is focused on These data suggest an even higher deficit in access, with an
relatively few countries. Although more than 1  billion people estimated 4 billion people out of a sample of 5.3 billion people
gained access to clean cooking between 2010 and 2018, most across 71  countries lacking access to modern energy cooking
of this improvement was in Asia.13 In China and India, more services in 2020. 22 Only 12% of rural households had access to
than 450 million people achieved clean cooking access, but such services, compared to 38% in urban areas. 23 Sub-Saharan
these two countries still account for nearly half of the global Africa had the smallest share of the population with access,
population without access.14 Many countries in Latin America at 10%, whereas Latin America and the Caribbean and East
and the Caribbean have high rates of access to clean cooking, Asia had the highest shares, at 56% and 36% respectively. 24
but notable exceptions include Haiti (only 6% access), Guatemala (p See Figure 39.)
(46%), Honduras and Nicaragua (both 55%).15 The electricity access deficit has improved for some years,
Sub-Saharan Africa continues to lag, with the number of people with the number of people lacking access decreasing from 801
gaining access to clean cooking not keeping up with population million in 2018 to 759 million in 2019. 25 However, large variations
growth.16 Large differences exist between rural and urban areas: persist among and within regions. Sub-Saharan Africa lags
the average access rate in rural sub-Saharan Africa is only 4%, the most, accounting for three-quarters (570 million) of people
whereas in urban areas it reaches 31%.17 Nigeria and Ethiopia globally without electricity access. 26 Although access in urban
have the largest populations in the region without access to clean areas of sub-Saharan Africa reached 78% by 2019, access in
cooking, a total of 275 million people in 2018.18 In Ethiopia, the rural areas was only 25%. 27 In some African countries – such
problem is primarily rural, whereas Nigeria has large urban and as Chad, Congo and Djibouti – rural electricity access rates are
rural deficits, with only 21% of its urban population able to access as low as 1%. 28

165
 RENEWABLES 2021 GLOBAL STATUS REPORT

FIGURE 39.
Population with Access to Modern Energy Cooking Services, by Region, 2020

Modern energy
cooking services
(Tier 4 and above)

Transition
(Tiers 2 and 3)

No modern energy
cooking services

Latin America and

the Caribbean Sub-Saharan Africa South Asia East Asia South-East Asia

15 % 10%
56 % 27% 36 % 21%
17% 33 %
54 % 55 %

29 % 73 % 19 % 31% 24 %

Note: Data based on a 71-country sample of 5.3 billion people representing 90% of lower- and lower-middle-income countries. Modern energy cooking
services refers to a household context that has met the standards of Tier 4 or higher across all six measurement attributes of the Multi-Tier Framework (MTF).
The MTF for cooking includes six attributes: exposure, efficiency, convenience, safety, affordability and fuel availability. To measure progress, each attribute
has six tiers, ranging from 0 to 5.
Source: ESMAP. See endnote 24 for this chapter.

In developing
Latin America Asia,
andurban electricity accessAfrica
Sub-Saharan rates were South
99% inAsia In the Middle South-east
East, Yemen remained theEast
Asia onlyAsia
country with a
thewith
2019, Caribbean
rural areas close behind at 94%. 29 The access rate significant electricity access deficit (53%) in 2019. 36
in Cambodia 15% the most, 17%
increased from 23% in 2010 to 75% in
27% 21% 36% 33%
56% 15%
In many countries, renewables (both on-grid and off-grid) have
2019. 30 India and Indonesia also made big improvements, with played an important role in enabling greater electricity access,
their rates rising from 67% (Indonesia) and 68% (India) in 2010 especially in rural areas. 37 However, in several countries the recent
to near-universal access in 2019. 31 The People’s Democratic successes have been based mostly on grid expansion using
Republic of Korea 29% was the only country in the 73%region19%
with fossil 54%
fuels. Indonesia’s
24% move to55%
universal31%
energy access was
access rates below 50% (reaching only 26% in 2019). 32 accompanied by a 155% increase in coal consumption, whereas
Central and South America reached very high average electricity renewables have increased very little and contributed only 16% of
access rates (97%) in 2019. 33 Haiti again was an exception, with national electricity generation in 2019, up slightly since 2010. 38 In
only 39% access overall and a mere 12% in rural areas. 34 Bolivia, India, electricity access rose from 68% to almost 100% during this
Honduras and Panama had rural access rates below 80%. 35 period, while coal’s share of electricity generation increased from
67% to 71%. 39 Bangladesh’s electricity access improvement (from
46% to 83%) was accompanied by large increases in natural gas
and oil generation.40
In Cambodia, on the other hand, hydropower has played a
major role in the country’s improved energy access. Electricity
access jumped from 23% in 2010 to 75% in 2019, while at the
same time hydropower generation increased from 32 gigawatt-
hours (GWh) to 4,370  GWh.41 Ethiopia’s more than doubling in
electricity access since 2010 also is based mostly on hydropower
(with some additional wind generation in recent years), whereas
in Kenya geothermal has played a big role.42 Electricity access in
Kenya increased from 18% in 2010 to 85% in 2019, and renewable
energy generation doubled over the same period, with its share
increasing from 69% to 82%.43

166
 04

Although much of this renewables-focused expansion has been

driven by larger-scale, grid-connected systems, distributed
TECHNOLOGIES AND MARKETS
renewables increasingly play a role in providing electricity Renewables-based systems have enabled greater energy access
access. In 2019, solar home systemsi supplied electricity to nearly in many countries and often represent the most cost-effective
8 million people in Bangladesh, 4.4  million people in India and solution, especially when solar systems are used to provide
3.4 million people in Kenya.44 electricity in low-density rural areas. 54 For access to clean
cooking, renewable options such as improved biomass stoves,
Despite overall progress in electricity access, the trend is currently
biogas, ethanol and solar cookers already make a contribution,
measured based on household consumption levels, which masks
and renewables-enabled electric cooking has begun to play a
the ongoing lack of sufficient electricity for other activities, such
role as well.
as productive uses that can allow people to get out of poverty.45
In addition, unreliable connections remain a significant problem. Renewables deployment for energy access has grown strongly
Across Africa, only two-thirds of people connected to the grid in recent years, although the COVID-19 pandemic had an
have electricity most of the time.46 impact in 2020. 55 As lockdowns spread across countries, energy
access companies initially struggled to maintain operations, and
Worldwide, the provision of cooling is affected by low, unreliable
the resulting economic crisis affected people’s ability to make
or unaffordable electricity supply. In 2021, more than 1  billion
payments for their existing power supply or to purchase new
people – two-thirds of them in urban areas – were considered at
systems. 56 In August 2020, of 600  energy access companies

DISTRIBUTED RENEWABLES
FOR ENERGY ACCESS
“high risk” because of no access to electricity, low incomes, and
surveyed in 44  countries, 70% reported significant disruptions
other factors, with a lack of cooling threatening their health and
from the pandemic, with 30% having to either pause all activity or
safety.47 In Asia, the highest risk populations are predominantly
cease operations entirely. 57 in several countries, however, the off-
the urban poor, whereas in sub-Saharan Africa the rural poor are
grid sector was recognised as providing essential services and
affected most.48 This reflects both different population dynamics
was allowed some degree of continued operation.58 Investment
as well as varying levels of electricity access.49
also picked up later in the year, and some sectors such as off-grid
Between 2020 and 2021, the number of people in rural areas at solar proved surprisingly resilient. 59
high risk from a lack of cooling is estimated to have increased
faster than those at risk in urban areas, primarily due to the poverty
CLEAN COOKING
impact of the COVID-19 pandemic.50 India, Indonesia, Nigeria,
Bangladesh and Pakistan were among the top 10  countries for The global clean cooking market is dominated by liquefied
both rural and urban poor at risk.51 India saw the fastest rise (13%) petroleum gas, with almost 2 billion people cooking with LPG.60
in people at risk in rural areas, affecting an additional 14 million In the 71 countries with a clean cooking deficit in 2019, 37% of
people.52 China and India accounted for 36% of the growth in poor people overall used LPG as a cooking fuel; however, LPG shares
urban settings, with an additional 6.8 million people at risk.53 In exceeded 70% in urban areas of South Asia, South-East Asia
rural areas, distributed renewables can provide cooling needs, from and Latin America and the Caribbean.61 Electricity also was used
simple fans connected to solar home systems to sophisticated increasingly for cooking, with its share more than doubling from
refrigeration units based on solar PV. 4% in 2010 to 10% in 2019.62
Renewables-based clean cooking solutions include improved
biomass cook stoves and more efficient fuels (for example,
pellets and briquettes), biogas, ethanol, solar cookers and electric
cooking linked to renewables-based electricity such as solar
or hydropower mini-grids. These options are being promoted
mostly through national and donor-funded programmes and
tend to involve some form of performance-based incentive or

A lack of access to
cooling threatens the

health and
safety
of at least 1 billion
people worldwide.

i Solar home systems are off-grid solar systems, rated at 11 watts (W) and above, that can be used for lighting and to power small electrical appliances.

167
 RENEWABLES 2021 GLOBAL STATUS REPORT

subsidy.63 Even where clean cooking solutions are prevalent,

households commonly practice “fuel stacking” and continue
to use some traditional cooking methods, often to meet socio-
cultural expectations.64
With traditional uses of biomass still dominant in cooking in
most of the developing world, improved biomass cook stovesi
have been a focus of donor, non-governmental and government
programmes for several decades.65 Of the many types of
improved cook stoves, very few meet World Health Organization
guidelines for emissions.66 However, no comprehensive data
are available on distribution of the stoves, and data for 2020 are
particularly scarce.
Recent programmes include the Bangladesh Improved Cookstove
Programme, initiated jointly by Bangladesh’s Infrastructure
Development Company Limited (IDCOL) and the World Bank
in 2013; by the end of 2020, the programme had distributed
2.4 million improved cook stoves, with a target of 5 million by the
end of 2023.67 On a smaller scale, in Kenya, the Results-Based Biogas can be a solution in areas where agricultural residues,
Finance programme of the Energising Development (EnDev) animal or human wastes are locally available.70 An estimated
multi-donor partnership delivered around 80,000 improved 125 million people use biogas for cooking globally, a figure that
biomass and ethanol cook stoves (as well as 21,000 LPG stoves) has been broadly constant over the last decade.71 Most people
between 2016 and 2019, reaching half a million people.68 A new cooking with biogas live in Asia (99.7%), with the bulk of the
phase starting in January 2020 aimed to deliver 40,000 additional production per capita occurring in China, Nepal, Vietnam, India
highly performing cook stoves by March 2021.69 and Bangladesh.72 (p See Figure 40.)

i An improved cook stove is a biomass stove that is more efficient and emits less emissions than a traditional stove or three-stone fire. An array of diverse
technologies exist, which vary considerably in terms of efficiency and emissions.

FIGURE 40.
Per Capita Production of Biogas for Cooking, Selected Countries, 2015 and 2020

Cubic metres per capita

0.5
10 2015 2020

8 0.4

6 0.3

4 0.2

2 0.1

0.5
0 0
Ch

Vi
N

In

Rw

Ba

Ke

Bu

Se

Et

Ug

Ta
et
ep

di

hi

nz
ne
in

ny
ng

rk

an
an
na

op
a
al
a

an
in
a

ga
lad

da
da
m

ia
a

ia
l
Fa
es
h

so

Source: IRENA. See endnote 72 for this chapter.

168
 04

In Africa, production DISTRIBUTED RENEWABLES FOR ELECTRICITY ACCESS

While most of the 125 million remains small but
Pico solari and solar home systems have played a growing
people who cook with increased 28% between
role in the provision of energy access, with more than 180 million
biogas live in Asia, 2015 and 2020.73 This
units sold over the last decade. 83 Apart from bringing electricity
African biogas occurred mostly
Rwanda, Senegal and
in
to the homes of over 100 million people, these units allow some
2.6  million people to run a business. 84 During the COVID-19
production has increased the five countries covered
pandemic, many countries officially designated off-grid solar
28% in the last five years. by the Africa Biogas
companies as “essential services”, enabling them to operate at
Partnership Programme
least partly during lockdowns. 85
(Burkina Faso, Ethiopia,
Kenya, Tanzania and The global market for off-grid solar systems grew a record 13%
Uganda). More than in 2019, the highest increase of the preceding five-year period. 86
38,000  biogas digesters were installed during Phase II of the Similar, if not higher, expansion had been expected by the industry
programme, implemented by Hivos and SNV between 2014 and in 2020, but the pandemic led to a significant slowdown. 87 Sales
2019 with funding from EnDev and the Netherlands Directorate- of affiliatedii systems fell 22% compared to 2019, with cash sales
General for International Cooperation.74 Although well below the (especially of solar lanterns) experiencing the biggest reductions
targeted 100,000 installations, the programme was successful (30%), while PAYGo sales declined only 1.7%. 88 The business

DISTRIBUTED RENEWABLES
FOR ENERGY ACCESS
in establishing markets for private sector biogas companies.75 operations of off-grid solar companies were disrupted because
Funding was approved for a follow-up biogas programme funded of lockdown measures that restricted the movement of goods
by the Dutch government through EnDev, expected to start and sales staff, as well as supply chain issues. 89 While businesses
during 2021.76 were affected mainly during the early months of the crisis, two-
thirds of off-grid companies still reported lower sales in the
Electric cooking is already cost effective for many people
second half of 2020 compared to 2019. 90
connected to national grids or off-grid small-scale hydropower,
and battery-supported electric cooking linked to solar-hybrid Around 6.6 million affiliated off-grid lighting products were sold
mini-grids is expected to become cost effective by 2025.77 To during 2020. 91 Portable solar lanterns (up to 3 W) accounted for
achieve this, the focus has been on linking renewables-based 64% of this, with another 18% of sales for larger light systems
solutions to efficient cooking appliances such as electric pressure of up to 10 W. 92 In addition, 1.2 million solar home systems were
cookers (which greatly reduce the cost of electric cooking sold, with all but 49,000 systems having an output smaller
compared to traditional electric hotplates) and on reducing than 100 W. 93 Appliance sales linked to off-grid solar products
the demand on the system during peak times.78 However, high also decreased, with a total of 946,000 appliances sold in 2020
upfront equipment costs remain a challenge, which could be compared to almost 1.2 million in 2020. 94 Television sales proved
addressed by “Pay-As-You-Go” (PAYGo) providers adding these more resilient than fan sales, with decreases of 3% and 31%
cookers to the services they offer.79
The electric cooking market is in the early stages of development,
especially for the direct current appliances required for off-grid
settings. 80 In 2020, the Global LEAP Awards launched the first-
ever competition for highly energy-efficient electric pressure
cookers suitable for use in both off-grid and weak-grid settings. 81
Solar cookers (such as parabolic cookers and solar ovens) offer
another clean cooking solution. Globally, more than 4  million
solar cookers had been distributed by early 2021, providing clean
cooking solutions to an estimated 14.3 million people. 82

i Pico solar systems/products refer to off-grid systems rated up to 10 W, used

primarily for basic lighting and mobile phone charging.
ii Affiliated products are those sold by companies that are connected to any of the partner organisations involved in the semi-annual GOGLA sales data
reporting process.

169
 RENEWABLES 2021 GLOBAL STATUS REPORT

respectively. 95 Solar water pump sales plunged more than 60%, of energy access.104 Of the identified 5,544 mini-grids operating
although this was due at least in part to bulk procurement in 2019, in energy access settings in March 2020 (with a total capacity
which did not happen in 2020. 96 of 2.37 GW), 87% were renewables-based.105 Solar PV has been
the fastest growing mini-grid technology, incorporated into
Regionally, the biggest reduction in off-grid solar product sales
55% of mini-grids in 2019 compared to only 10% in 2009.106
in 2020 occurred in South Asia, with a 51% drop compared to
(p See Figure 42.)
2019. 97 East Africa, which remained by far the largest market,
saw a dip of 10% (mostly in cash sales), whereas sales in Central Mini-grid development used to be driven by utilities and non-
Africa and West Africa increased despite the pandemic, up 22% governmental organisations (NGOs), but in recent years
and 9% respectively. 98 West Africa experienced a small reduction private developers also have entered the space.107 In 12 sub-
(3.6%) in cash sales, but PAYGo sales increased 23%, while in Saharan African countries with high electricity access deficits,
Central Africa both segments increased (up 8% for cash sales renewables-based mini-grid connections installed by private
and 71% for PAYGo sales). 99 (p See Figure 41.) developers increased from just 2,000 in 2016 to more than 41,000
in 2019, mostly in East Africa.108 Over 200,000 people, as well as
Kenya, India, Ethiopia, Uganda and Nigeria were the top five businesses, schools and health facilities, have been connected
off-grid solar markets globally by sales volumes.100 The largest through these mini-grids.109 The rapid growth has been linked to
reductions occurred in India, where sales dropped 54% in 2020 policy and regulatory changes, as well as to donor programmes
(the country had already experienced a 31% reduction in 2019).101 that have provided incentives to developers.110
In Ethiopia, where off-grid solar sales had more than doubled in
While most mini-grid developers are small-scale companies or
2019 to just over 1 million products, sales dropped 40% in 2020.102
start-ups, some are beginning to reach scale; in late 2020, Husk
Nigeria was the only one of the top five markets where sales
Power became the first company globally to install 100 community
increased in 2020, although by less than 1% (compared to a 5%
mini-grids, which also serve 5,000 business customers.111 In recent
increase in 2019).103
years, large and international corporations such as EDF, Enel,
In addition to stand-alone solar systems, renewables-based ENGIE, Iberdrola, Shell and Tokyo Electric also have joined the
mini-grids are recognised increasingly as an important facilitator mini-grid market, generally by taking over or investing in smaller

FIGURE 41.
Sales Volumes of Affiliated Off-Grid Solar Systems, Selected Regions, 2019 and 2020

Million units
5
2019
-10% 2020
4

Change in %

-51%
2

+9%
1 -41% +22% -44% -53% +6%

0
a
a

ia

ric t

ci ia

be ica

a
Af as
c
ric

ric

ric
As

Pa As
fri

fic

an
rib er
th E
Af

Af

Af
tA

Ca Am
h

or le

st
ut
st

rn
N idd

Ea
ra
es
Ea

So

he
nt

& tin
W

&
Ce

ut
La

So
&

Note: Affiliated products are those sold by companies that are connected to any of the partner organisations involved in the semi-annual GOGLA sales data
reporting process, including GOGLA members and companies selling products that meet Lighting Global Quality Standards.
Source: GOGLA. See endnote 99 for this chapter.

170
 04

FIGURE 42.
Shares of Installed Mini-Grids by Technology, March 2020

50% 21% Hydropower

Solar PV

13% Solar hybrid

11% Diesel / Heavy fuel oil

DISTRIBUTED RENEWABLES
FOR ENERGY ACCESS
Biomass
2% 3.2%
Other

Note: Figure refers to currently operational (functioning) mini-grids in energy access settings. Solar hybrid mini-grids combine solar PV with other power
sources such has hydropower or wind power but most frequently with diesel generators. Where totals do not add up, the difference is due to rounding.
Source: Mini-Grids Partnership. See endnote 106 for this chapter.

companies.112 Although private sector interest in mini-grids has several clinics.121 Recent mini-grid activity has occurred in several
Other
grown, most developers have relied on public funding such as countries of francophone West Africa. Benin in 2020 selected
grants or results-based financing from donors, although some 11 companies to construct solar mini-grids serving 128 localities
2 3.2 Biomass

50
form of subsidy is also common for grid-based electricity.113 % % its Off-Grid Clean Energy Facility.122 In early 2021, Togo’s
under
In Africa, the COVID-19
Solar PV pandemic impacted % the mini-grid11sector
%
Rural Electrification and Renewable Energy Agency announced
the first 129 localities to be electrified by its mini-grid programme,
more than the rest of the solar industry in 2020 due to complex Diesel / Heavy fuel oil
logistics and difficulty accessing remote areas.114 Many projects and Senegal’s Rural Electrification Agency launched a tender for
under development or being tendered were slowed or put on the electrification of 117 villages through solar mini-grids.123
hold.115 However, some progress occurred. Nigeria, which has % one 13 Solar hybrid
In East Africa, Kenya has been the most active mini-grid market
of the largest mini-grid support programmes under its National with almost 200 sites in operation in 2019.124 Renewvia Energy
Electrification Project, aims to electrify 300,000 households and commissioned another three solar mini grids in 2020, with a total
30,000 local enterprises through private sector-driven solar- capacity of 87.6  kW in Kenya’s Turkana and Marsabit counties,
hybrid mini-grids by 2023.116 With funding from the World Bank% 21 serving two communities and a refugee camp in an electrification
and the African Development Bank, it offers minimum subsidy project supported throughHydropower
the EnDev RBF facility.125 Meanwhile
tenders and performance-based grants.117 In 2020, Nigeria’s Rural Kenya Power launched a tendering process in early 2021 to
Electrification Authority (REA) commissioned several installations hybridise 23 older diesel mini-grids, mostly with solar.126 In
under the project, including two solar hybrid mini-grids with a Central Africa, a 1.3 MW solar-hybrid mini-grid installed by Nuru
combined capacity of 135  kW developed by Renewvia Energy in the city of Goma, in the Democratic Republic of Congo, was
and a 234 kW solar hybrid mini-grid installed by local developer put into service in February 2020.127
GVE Projects Limited that will power nearly 2,000 households.118 In Asia, Bangladesh’s 170 kW BREL solar mini-grid project came
Nigeria’s REA also developed several solar mini-grids for use online in early 2020, financed by IDCOL as part of its solar mini-
at hospitals and other healthcare facilities as an emergency grids initiative for islands and other remote areas.128 This brought
response to COVID-19.119 Health facilities were a focus of the total under this initiative to 27  projects, with a combined
several other donor-driven mini-grid initiatives as well. Power capacity of 5.6 MW.129 In the Americas, in late 2020, the national
Africa, funded by USAID, redirected USD  4.1  million in grants Rural Electrification Program (PERMER) in Argentina’s remote
to off-grid companies in 2020 for rural and peri-urban health Rio Negro province repowered two mini-grids (22  kW and
clinic electrification, including through mini-grids.120 In Lesotho, 40  kW), which previously ran on LPG, with solar PV and wind
OnePower together with SustainSolar aim to supply seven power as well as storage; this increased electricity access for
containerised solar mini-grids under Power Africa to electrify 100 families from 16 to 24 hours.130

171
 RENEWABLES 2021 GLOBAL STATUS REPORT

BUSINESS MODEL INNOVATIONS rural households; with it, the company aims to reach a wider
segment of the global market.135 The initial target markets are the
In most developing countries, grid-based electricity access is Democratic Republic of the Congo, Kenya, Rwanda and Togo,
the domain of state-owned electric utilities. In contrast, off-grid but Bboxx aims to expand into further markets in 2021.136
renewables are much more reliant on the private sector and
Pico solar and solar home systems remain the most common
on innovative business models. Business models vary greatly
renewables-based electricity access solutions using PAYGo
among off-grid renewables providers. Over the last decade,
models, with 2.2  million affiliated systems sold worldwide in
PAYGo systems have enabled energy access for millions of off-
2020.137 In Rwanda, a new pilot PAYGo solution was launched
grid consumers, mostly through solar home systems, although
in October 2020 when ENGIE Energy Access teamed up with
PAYGo also has made inroads into productive uses such as
OffGridBox to deploy containerised solar PAYGo.138 This supplies
solar water pumping and even clean cooking. PAYGo companies
clean drinking water, electricity for recharging and Wi-Fi from
typically provide either a “lease-to-own” or a “usage-based”
solar-powered containers equipped with electricity storage,
payment model.131
water purification systems and a WI-FI hotspot.139 Customers get
In 2020, 84% of affiliated solar home systems were sold on a a battery, LED (light-emitting diode) lights, phone chargers and
PAYGo basis.132 Traditionally, many PAYGo companies providing a water canister and pay a small fee for recharging and refilling
solar home systems focused on basic services such as lighting from the system.140
and phone charging, or possibly a small television. Increasingly,
Beyond households, a number of PAYGo solutions exist in
companies have expanded their offerings to bigger systems
agriculture, particularly for solar irrigation. SunCulture, which
that power a broader range of appliances, such as fans and
already offered solar irrigation kits on a “pay-as-you-grow” basis
refrigerators, as well as bundling in other services.
in Kenya, announced a new partnership in December 2020 with
For example, the product range of M-Kopa, which operates in Bboxx and EDF to bring solar irrigation to 5,000 farmers in Togo
Kenya, Nigeria and Uganda, includes three sizes of solar home using the PAYGo model.141 The government of Togo will provide
systems, solar fridges for small businesses and smartphones. a subsidy to halve the costs of the systems to make them more
For customers who have made reliable payments on a PAYGo affordable for farmers.142
product, the company also offers services such as clean biomass
PAYGo also has advanced in the clean cooking sector, for
cook stoves, entertainment packages and even financial services
example for ethanol, a renewable cooking fuel that is relatively
such as loans (for example, for hospital stays).133 Bboxx (UK) also
easy to distribute.143 The traditional model has been centralised
has branched out into home entertainment and joined forces in
bottling and bulk distribution, but in 2019 KOKO Networks
2020 with the French media company Canal+ to sell televisions
launched a new decentralised distribution model with the
and decoders with its solar home systems in Togo and the
fuel infrastructure company Vivo Energy in Nairobi, Kenya.144
Democratic Republic of the Congo.134
Customers pay digitally for the fuel, which is then dispensed by
While many companies have offered higher-value services for 700 ethanol vending machines (Koko Points) in corner shops
better-off customer segments, affordability remains a major across the city.145 KOKO Networks also sells its own ethanol
problem for many communities, especially in more-remote rural stoves, and by August 2020 it was serving 50,000 households.146
areas with high levels of poverty. In August 2020, Bboxx launched In June 2020, the company was rewarded a results-based
a new product (bPower20) – a package of 20  W solar panels finance project for a further 250,000 connections under the
and new improved batteries – targeted specifically at low-income Dutch SDG 7 programme.147

172
 04

Most clean cooking PAYGo is dominated by small LPG start-ups

– such as KopaGas and PayGo Energy – but in July 2020 ENGIE
FINANCING FOR RENEWABLES-
Africa, a major player, announced a new partnership with the BASED ENERGY ACCESS
PAYGo gas company PayGas in South Africa to support two new
With less than a decade left before 2030, even prior to the COVID-
LPG refilling stations that can service 4,000  homes.148 PayGas
19 pandemic the total investment in energy access was far below
plans to scale its operations to other African countries.149
what has been estimated as needed to achieve SDG 7.159 The
Similar to the solar irrigation sector, public funding is often energy access finance that was available mostly bypassed the
needed to support private sector business models that operate countries with the greatest access deficit, and very little of the
in the clean cooking sector. To drive further innovation in clean already small amount of finance was dedicated specifically to
cooking, in 2020 the Clean Cooking Alliance launched the renewables-based energy access systems.160
Cooking Industry Catalyst, which aims to demonstrate new
Clean cooking suffers from the largest investment gap overall
viable and scalable business models.150
and remains well below the estimated annual USD  4.5  billion
Business models for mini-grids for rural electrification vary, required to achieve universal access by 2030.161 However, positive
with different combinations and approaches to ownership and developments have occurred, with overall finance for clean
operation, service delivery and billing. Many mini-grids are owned cooking tripling from USD 48 million in 2017 to USD 131 million
by national utilities, whereas others are under private, community in 2018 (most recent data available).162 Most clean cooking

DISTRIBUTED RENEWABLES
FOR ENERGY ACCESS
or hybrid ownership.151 There is no proven business model that funding comes from the public sector, with international donor
works everywhere, and as of late 2020 no private mini-grid and development finance institutions providing two-thirds of
company was profitable.152 In general, revenues per customer financing in 2018, nearly half of it as grants.163 The public sector is
remain low, and low consumption is a systemic problem.153 also very active in the delivery of the funded activities, with 44%
Expanding consumption is critical to the success of mini-grid of the funding passing through public channels (compared to
business models, with many companies focusing on developing only 14% for electricity access).164 Private finance plays a relatively
productive uses, which also are increasingly supported through small role, with just under one-quarter of funding in 2018, while
donor funding. carbon markets provided another 16%.165
In 2020, the Energy and Environment Partnership Trust Fund Finance for electricity access in the 20 countries with the
(EEP Africa) approved funding to support several innovative highest access deficit increased 25% between 2017 and 2018 to
mini-grid business models that include productive uses. In reach USD 43.6 billion.166 In some countries, more than 95% of
Rwanda, EEP is supporting East African Power in developing electricity finance went to grid-connected renewables, mini-grids
a hydropower plant and mini-grid that will service not only and off-grid solutions; however, these accounted for only 14% of
households but also community buildings and an agricultural the total energy access funding in 2018, and, overall, renewables-
centre of excellence, as well as a women’s aquaculture business based systems received only around 1.5% of the total.167
to improve socio-economic development.154 In Uganda, ENGIE
Unlike in clean cooking, private investment has been a key driver
Equatorial is receiving EEP support to deploy four solar-hybrid
of off-grid electricity access, accounting for 78% of funding in
mini-grids, with an industrial park as an anchor client.155 The
2019.168 While public financing halved compared to the previous
project also includes an incubation programme that enables local
year, major increases in funding occurred from several types of
women entrepreneurs to access asset financing for productive
private investors. Private equity, venture capital, infrastructure
use appliances.156
fund and institutional investors increased their off-grid funding
Some companies involve communities to identify needs and from USD 193 million in 2018 to USD 290 million in 2019, while
how to grow demand. Miowna SA, a joint venture of PowerGen corporations more than tripled their investment during this
and Sunkofa Energy, won a competitive tender run by the Benin period, from USD  22  million to USD  68  million.169 The latter
Off-Grid Clean Energy Facility in 2020 to electrify 40 villages in focused mostly on East Africa and South-East Asia.170 (p See
the country.157 Miowna worked with communities and other local Figure 43.)
stakeholders to identify innovative value propositions through
productive uses that will help increase local incomes and make
the mini-grids viable.158

More than

2 million solar
products
were sold on a pay-as-
you-go basis in 2020.

173
 RENEWABLES 2021 GLOBAL STATUS REPORT

FIGURE 43.
Annual Commitments to Off-Grid Renewable Energy, by Type of Investor, 2013-2019

USD million
500
460 Others

429 Undisclosed

391 Government agencies and

400 intergovernmental institutions
Commercial finance institutions
Individuals
300
300 Corporations and business
associations
243
Development finance institutions
Institutional investors
200
Private equity, venture capital
and infrastructure funds

101
100

21
0
2013 2014 2015 2016 2017 2018 2019

Source: IRENA and CPI. See endnote 170 for this chapter.

The COVID-19 pandemic affected finance flows to the energy CLEAN COOKING SECTOR FINANCING
access sector, particularly mini-grids.171 Some attempts have
In 2019, 25 clean cooking companies were able to raise
been made to help companies struggling with these effects. The
USD 70 million, a 63% increase compared to the 32 companies
Energy Access Relief Fund was established with the aim of raising
that raised USD 43 million in 2018.175 Around three-quarters
USD  100  million to provide unsecured, low-cost, subsidised
of the funding went to companies offering renewables-based
loans, with funding from donors including the Green Climate
solutions, with biomass stoves and biogas accounting for 25%
Fund.172 In late 2020, the African Development Bank launched
and 19% respectively of the capital raised.176
the USD  50  million COVID-19 Off-Grid Recovery Platform to
provide relief and recovery capital to energy access businesses.173 In 2020 and early 2021, several renewables-focused clean cooking
Additionally, the Shine Campaign made available grants of companies managed to raise new capital. Improved cook stove
between USD 3,000 and USD 10,000 to smaller players.174 manufacturer BURN (Kenya) partnered with the crowdfunding
platform Bettervest (Germany) in an attempt to raise more than
EUR 1 million (USD 1.2 million) in working capital.177 Bettervest
also raised over EUR  300,000  (USD  360,000) for Kenyan
biomass briquette company Sanergy in early 2021.178 One of
the companies involved in the African Biogas Partnership

Investment in the

largest clean
cooking
companies
increased 63% in 2019.

174
 04

FIGURE 44.
Shares of Off-Grid Solar Financing, by Type of Funding, 2012-2020
%
100
Debt
90 Equity

80 Grant

70

60

50

40

DISTRIBUTED RENEWABLES
FOR ENERGY ACCESS
30

20

10

0
2012 2013 2014 2015 2016 2017 2018 2019 2020

Note: The data cover financing for off-grid solar such as solar home systems, solar lanterns and solar-powered appliances (e.g., water pumps) but exclude
solar mini-grids.
Source: GOGLA. See endnote 186 for this chapter.

Programme, Sistema.bio, received a USD 1.35 million loan facility Much of the 2020 off-grid solar funding flowed to Africa. Lumos
from the Dutch Development Bank FMO in late 2020 to scale up received USD 35 million in financing from the US International
its operations in Kenya.179 In addition, Connected Energy, which Development Finance Corporation to further expand in
offers a smart meter specifically for biogas systems, attracted Nigeria.187 Bboxx secured a USD  4  million loan from the Off-
USD 1.25 million in funding.180 Grid Energy Access Fund of the Energy Inclusion Facility to
Although sales revenues provided 80% of the total revenues of expand in the Democratic Republic of the Congo.188 Oolu closed
clean cooking companies in 2019, this was being supplemented a USD 8.5 million Series B investment round involving several
by grants and results-based finance, as well as carbon offset impact investors to further develop its operations in West Africa.189
revenues.181 The latter experienced a five-fold increase between UpOwa signed a EUR  3  million (USD  3.6  million) debt facility
2018 and 2019 to USD 5.2 million, with almost all of the carbon with EDFI ElectriFI to enable expansion in Cameroon.190 Easy
offset funding going to biomass stove manufacturers.182 Solar, which operates in Sierra Leone and Liberia, announced
a USD  5  million round of funding including a USD  3  million
Series A Equity led by global impact investor Acumen and
OFF-GRID ELECTRICITY ACCESS SECTOR FINANCING Dutch development FMO, in addition to a USD  2  million debt
The COVID-19 pandemic impacted financing for off-grid facility from investment platform Trine.191 Fenix International,
companies in 2020, but not to the extent that was initially a subsidiary of ENGIE, secured a USD  12.5  million loan from
feared. In the case of off-grid solar, the overall volume of funding the European Investment Bank to support the deployment of
for affiliated companies was up slightly at USD  316  million 240,000 solar home systems in Uganda.192
compared to USD 312  million in 2019.183 The main impact Energy+, a less well-established Malian-owned and managed off-
has been a reduction in equity funding of 46%, due mainly grid solar company, secured USD 1 million through a combination
to problems in carrying out on-the-ground diligence, which of debt, equity and grant financing from Venturebuilder, Cordaid
made it difficult to complete equity transactions.184 Most of and the US African Development Foundation.193 Easy Solar,
this reduction was due to strategic corporate deals falling together with Altech of the Democratic Republic of the Congo
from USD 76 million in 2019 to USD 8.5 million in 2020.185 The and Deevabits of Kenya, also received unspecified loans from
reduction in equity funding was compensated by an increase the newly established Sima Angaza Distributor Finance Fund,
in both debt and grant funding, mostly from governments and which aims to provide capital for the last-mile distribution
development finance institutions.186 (p See Figure 44.) sector.194 In addition to the finance provided to companies

175
 RENEWABLES 2021 GLOBAL STATUS REPORT

focused on household solar systems, solar-powered irrigation PUBLIC FUNDING AND INITIATIVES
supplier SunCulture closed a Series A investment round of
While the private sector has been driving much of electricity
USD  14  million in late 2020; investors included Energy Access
access funding, development finance institutions (DFIs), bilateral
Ventures, Électricité de France, Acumen Capital Partners and
donors and other funders such as philanthropic foundations
Dream Project Incubators.195
continue to commit funding to energy access. This funding takes
Crowdfunding continued to play an important role for off-grid solar various forms including grants, results-based finance, guarantees,
companies. In the first half of 2020, crowdfunding transactions loans and other debt facilities and can be used to support
were mostly refinancing of earlier loans.196 For example, the governments, development partners such as NGOs, or private
initial response of UK crowdfunding platform Energise Africa to sector companies in implementing energy access programmes.
the pandemic focused on refinancing the existing debt of seven
Off-grid energy access funding by DFIs has consistently
companies, raising just over GBP 1.5 million (USD 2.0 million).197
lagged behind funding for on-grid electrification. 209 In 2019,
By late 2020, the platform had not only resumed its normal
DFIs committed an estimated USD  1  billion – around 12% of
lending activities but also launched its first funding campaigns
their total energy funding commitments – to off-grid electricity
both for solar projects in the small and medium-sized enterprise
access. 210 DFI funding for clean cooking, meanwhile, totalled only
sector and outside of Africa, raising a total of GBP  1.9  million
USD 78 million in 2018, even though the lack of access to clean
(USD 2.6 million) for Candi Solar to provide solar energy to such
cooking affects many more people than the lack of electricity
enterprises in South Africa and India.198
access. 211 In 2020, most of the significant new energy access
While funding for the off-grid solar sector has held up during commitments from DFIs were again focused on electricity
the COVID crisis, funding for the mini-grid sector dropped by access, with a few exceptions as set out below.
almost a third, with the biggest reduction occurring in equity
The World Bank approved USD 150 million in financing to improve
finance.199 However, by late 2020 some activity had resumed,
access to modern energy for households, enterprises and public
with, for example, Dutch development bank FMO investing
institutions in Rwanda, both on- and off-grid. 212 Although the
USD 5 million in Husk Power in October 2020. 200 Winch Energy
majority of the funding will go to electricity access, the project
in early 2021 mobilised USD 16 million for 49 mini-grids in Sierra
includes the Bank’s largest clean cooking commitment in Africa,
Leone and Uganda through NEoT Off-grid Africa, a platform
and the first project co-financed by the recently launched Clean
developed by Électricité de France, Mitsubishi and Meridiam. 201
Cooking Fund (CCF). 213 The CCF will provide USD 20 million for
The funding includes some grants through development
clean cooking, with USD 10 million as grants and USD 10 million
aid from Germany, the European Union (EU) and the United
as loans. 214 The project targets 2.15 million people, leveraging
Kingdom. 202 Also in early 2021, Nigerian start-up Havenhill
an additional USD  30  million in public and private sector
Synergy obtained USD  4.6  million local currency funding
investments. 215
for 22 solar mini-grids from the Chapel Hill Denham Nigeria
Infrastructure Debt Fund. 203 In Burundi, the World Bank agreed to provide USD  100  million
in grants for the Solar Energy in Local Communities programme
Funding in 2020 was not just limited to companies supplying
(SOLEIL), which will double the rate of electricity access in the
renewables equipment but also those providing enabling
country, with a focus on rural areas. 216 The World Bank also
services. For example, Angaza, which sells software for solar
approved USD 52.9 million in financing for the Lesotho Renewable
PAYGo solutions, raised USD  13.5  million from East African
Energy and Energy Access Project, aimed at expanding electricity
energy impact fund KawiSafi Ventures and Total Carbon
access in remote areas of the country. 217 In Haiti, the World Bank
Neutrality Ventures, the venture capital arm of energy company
approved USD  6.9  million additional financing for the Haiti:
Total (France). 204 Total was also one of several investors providing
USD  12  million Series A financing to SparkMeter, a provider of
grid management services to hard-to-reach communities. 205
Acumen invested an unspecified amount in Solaris Offgrid, a
social enterprise providing PAYGo software. 206
A new innovative financing instrument was launched in early 2021
by South Pole and Positive.Capital Partners with the support of
several foundations. 207
The D-REC Initiative
will provide funding The Green Climate Fund
for renewables-based committed

USD 300 million

energy access projects
by selling third-party-
certified renewable energy to renewables-based
certificates to companies energy access projects
interested in going beyond in 2020.
their corporate renewables
commitments. 208

176
 04

Renewable Energy for All project, specifically to provide

renewable energy solutions for at least four priority healthcare
facilities involved in the response to COVID-19. 218
The African Development Bank (AfDB) made its first significant
investment in clean cooking in late 2020 with a USD  5  million
commitment to the SPARK+ Africa Fund, with another
USD  10  million for the Fund coming from the European
Commission. 219 SPARK+ Africa, which targets total investment of
USD 50-70 million, is a new impact investment fund launched by
Enabling Qapital and the Clean Cooking Alliance to provide debt
and equity financing to enterprises that manufacture, distribute
and finance clean cooking solutions across sub-Saharan Africa. 220
The AfDB, jointly with the European Commission, KfW, the Clean PHILANTHROPIC AND INNOVATION FUNDING
Technology Fund, Norfund and other investors, also committed a
Significant announce­ments in philanthropic funding in 2020
total of USD 160 million to the first close of the Facility for Energy
included the Rockefeller Foundation committing USD  1  billion
Inclusion, a fund to improve electricity access across Africa

DISTRIBUTED RENEWABLES
FOR ENERGY ACCESS
over a three-year period to catalyse a green recovery from
through small-scale renewable energy and mini-grid projects. 221
COVID-19, building on Rockefeller’s existing work on mini-
To further support mini-grids, the AfDB approved a USD 7 million
grids. 232 A key focal area is scaling distributed renewable energy
grant from the Sustainable Energy Fund for Africa (SEFA) for
across developing countries, in addition to equitable access to
technical assistance. 222
COVID-19 tests and vaccines. 233
The European Union provided a EUR 62 million (USD 76 million)
The IKEA Foundation, jointly with UK Aid, launched the Powering
de-risking guarantee to COFIDES, the Spanish development
Renewable Energy Opportunities (PREO) programme in June
finance institution, and AECID, the Spanish development
2020 to support productive use of energy projects in rural areas,
agency, for their renewable energy support programme for rural
with a focus on grants of up to EUR  300,000 (USD  368,473)
sub-Saharan Africa. 223 The guarantee will help generate a total
for action learning and supply chain innovation. 234 The aim is to
investment of more than EUR 800 million (USD 983 million) and
deliver a project portfolio of EUR 20 million (USD 24.6 million). 235
is expected to provide electricity to at least 180,000 new people
in rural areas. 224 A EUR  62  million (USD  76  million) guarantee Several foundations (Rockefeller Foundation, Shell Foundation
agreement with France’s Agence Française de Développement and Good Energies) supported Sustainable Energy for All
in partnership with Italy’s Cassa Depositi e Prestiti is expected to (SEforALL) in establishing the Universal Energy Facility to
provide electricity access to another more than 1 million people. 225 provide results-based finance. Other donors and partners
include UK Aid, Power Africa, Carbon Trust and the
Sweden’s Beyond the Grid Fund for Africa (BGFA) expanded to
Africa Minigrid Developers Association. In the first phase,
Uganda, with initial funding of EUR 11.8 million (USD 14.5 million)
USD  6  million in grant payments are available for mini-grid
for a six-year programme. 226 The Fund now operates in five
projects in Benin, Madagascar and Sierra Leone to deliver
countries, with total funding of EUR 59 million (USD 73 million). 227
around 14,000 electricity connections. 236
Sweden’s SIDA together with the Nordic Environment Finance
Corporation announced in September 2020 the allocation of While renewables-based energy access solutions are already
SEK 5 million (USD 0.6 million) for a new Scaling of Clean Cooking well developed and commercially available for many applications,
Solutions programme in Zambia. The aim is to accelerate the use funding also has been allocated to support research and
of higher-tier cooking solutions. 228 innovation. In 2020, the Fair Cooling Fund, administered by
Ashden and launched in November with USD 580,000 in funding
Climate finance has become a significant funding source for
from the philanthropic collaborative K-CEP, awarded grants of
energy access, and the Green Climate Fund (GCF) approved
between USD 40,000 and USD 100,000 to seven innovators for
three projects in 2020 for just over USD 300 million. 229 Although
the development of sustainable cooling options, including in off-
the GCF provided funding in 2019 for clean cooking projects
grid areas. 237 Engineers Without Borders USA awarded seven
in Bangladesh, Kenya and Senegal, in 2020 the main energy
grants in May 2020 of between USD  30,000 and USD  50,000
access projects were focused on mini-grids. They included: a
for its Chill Challenge to catalyse innovative solutions for off-
USD  45.7  million project to develop 22 community-scale solar
grid refrigeration; projects included innovative solar chilling
plus battery storage micro-grids in southern Haiti to provide an
refrigeration and an icemaker powered by farm waste. 238
alternative to diesel generators; a USD  235.5  million project in
Senegal to mobilise private sector participation in solar-powered To support innovation in clean cooking, the UK Aid-funded
mini-grids for 1,000 remote villages; and USD  21.4  million to modern energy cooking services (MECS) programme awarded a
kickstart a renewable energy market in rural Afghanistan and lay total of GBP 826,000 (more than USD 1 million) to 14 community-
the groundwork for developing a mini-grid sector (including three scale pilots and market assessments to advance efficient electric
solar mini-grids). 230 In addition, the GCF approved USD 60 million cooking. 239 Renewables-focused pilots include funding for
for equity and co-financing of the Energy Access Relief Fund, PowerCorner Zambia, which will explore powering rural electric
open to both electricity and clean cooking enterprises. 231 cooking with solar mini-grids. 240

177
 RENEWABLES 2021 GLOBAL STATUS REPORT

NATIONAL POLICY sub-Saharan Africa where most countries had few relevant
policies in 2010 or even as recently as 2015. 246 By 2019, policies
DEVELOPMENTS such as the inclusion of off-grid solutions in electricity planning,
regulatory and fiscal frameworks to promote mini-grids and
The scale-up of renewables-based systems for energy access
stand-alone renewables had been implemented in many more
requires conducive policy, regulatory and fiscal environments.
countries. 247 (p See Figure 45.)
This means national targets and plans that include off-grid
renewables, combined with a variety of specific measures to Developments in 2020 include the Ethiopian Energy Authority’s
support renewables – such as fiscal incentives (for example, new directive to establish procedures for mini-grid licencing and
lower VAT rates, import duty exemptions) and subsidies, quality tariff regulations. 248 Benin and Mali introduced VAT and import
standards for solar systems and cook stoves, and tariff regulations duty exemptions for solar. 249 Kenya, on the other hand, removed
for mini-grids. 241 (p See Tables 7 and 8.) a VAT exemption for solar and wind power, including batteries, in
While many countries had electricity access targets in 2020,
out of 64 selected countries with electricity access deficits, just
under half had renewables-focused energy access targets. 242
(p See Table 7.) Several countries also have included off-grid
renewables targets for electricity access in their Nationally
Determined Contributions (NDCs) towards reducing emissions
under the Paris Agreement. 243 Some countries have adopted
new off-grid energy access targets linked to economic recovery
plans in response to the COVID-19 pandemic. For example,
Nigeria announced that it would support 5  million new solar
home systems or mini-grid connections serving up to 25 million
customers under the Solar Power Naija Initiative. 244 As part of the
Nigerian Economic Stability Plan, the initiative also aims to create
up to 250,000 jobs in the energy sector. 245
Over the last decade, policy frameworks benefiting renewables
for electricity access have made major advances, especially in

FIGURE 45.
Key Improvements in RISE Indicators, Selected Regions, 2010, 2015 and 2019

Inclusion of off-grid solutions Framework for mini-grids Framework for stand-alone

in electricity plan solutions

Sub-Saharan Sub-Saharan Sub-Saharan

South Asia Africa South Asia Africa South Asia Africa
100 100 100
80 80 80
60 60 60
40 40 40
20 20 20
0 0 0

Latin America & East Asia & Latin America & East Asia & Latin America & East Asia &
Caribbean Pacific Caribbean Pacific Caribbean Pacific

2010 2015 2019

Note: RISE (Regulatory Indicators for Sustainable Energy) provides a set of indicators to help
compare national policy and regulatory frameworks for sustainable energy. Indicators in the
Figure assess average countries’ policy and regulatory support for access to electricity across
selected regions. RISE classifies countries into strong performers in the top third of the 0-100
score range, middle third performers, and weaker performers in the bottom third.
Source: ESMAP. See endnote 247 for this chapter.

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 04

its 2020 Finance Bill (although there were suggestions that this Several countries have covered clean cooking in their NDCs to
removal would be repealed in 2021). 250 address the significant climate impacts of deforestation from
Solar irrigation received support in India, where the Kusum inefficient biomass cooking. 258 (p See Table 8.) For example,
Yojana scheme offers farmers a 60% subsidy for installing solar the Nepalese government included new clean cooking
pumps. 251 Togo announced that it would provide 50% subsidies targets in its second NDC submitted in December 2020. 259
for solar water pumps. 252 In addition to 500,000 additional improved cook stoves and
200,000 household biogas systems, the NDC aims for 25% of
Several donor programmes aim to further support off-grid
households to cook with electricity by 2030, in tandem with
renewables policy development, especially to improve the
targets to increase electricity generation from renewables. 260 To
regulatory environment for mini-grids. In 2020, the Global
support a shift to electric cooking, the government decided in
Environment Facility, with the United Nations Development
2020 to waive the 15% customs duty for induction stoves and
Programme as the lead agency, launched its new Africa Mini-
to introduce a 20% discount on electricity bills for induction
grids Programme. 253 The programme focuses on policy de-risking
stove users. 261
to reduce costs and will initially support 11 African countries in
addressing the key risks and underlying barriers holding back India has supported major growth in clean cooking with LPG
investment. 254 and in 2020 expanded the Pradhan Mantri Ujjwala Yojana
Clean cooking tends to receive less attention from policy scheme to provide subsidised LPG connections to 10 million
additional poor households. 262 As part of the country’s March

DISTRIBUTED RENEWABLES
FOR ENERGY ACCESS
makers, as half of the population without access to clean cooking
2020 COVID relief package, up to three free-of-cost LPG refills
lives in countries that lack advanced policy frameworks (such as
were provided to scheme recipients. 263 By contrast, in Kenya
plans, standards and financial incentives) for clean cooking. 255
fiscal responses to the pandemic resulted in clean cook stoves
However, some countries have implemented these type of policy
and fuels losing the VAT exemption in place since 2016. 264
measures during the last decade, especially in Latin America, the
This was denounced by the clean cooking industry as a major
Caribbean and South Asia. 256 In Africa, Benin, Kenya, Nigeria and
setback in a country that had strongly supported growth in
Tanzania also have been catching up. 257 Clean cooking policies
generally do not focus on renewables but support clean cooking the sector. 265
solutions more broadly.

Half of the population without

access to clean cooking lives
in countries that

lack policy
frameworks
for this.

179
 RENEWABLES 2021 GLOBAL STATUS REPORT

TABLE 7.
Distributed Renewables Policies for Electricity Access, Selected Countries, 2020

Country National Plans and Targets Regulatory Policies Non-Regulatory Policies

Grid arrival plan/

guarantees, etc.)
tion codes, tariff,
energy access in

Fiscal incentives
frameworks and

Public financing
and legal provi-
renewables for

renewables for

sions (connec-

Tendering, call
energy access

energy access

Adminis­trative

licencing, etc.)

or competitive

(loans, grants,
renewables in

plan/strategy
of distributed
INDC or NDC

for proposals

(import duty,
Distributed

Integration
Distributed

subsidies,
standards
Technical

VAT, etc.)
strategy

Quality/
process
targets
Africa
Angola
Benin
Botswana
Burkina Faso
Burundi
Cameroon
Central African Republic
Chad
Comoros
C
 ongo, Democratic
Republic of the
Congo, Republic of the
Côte d'Ivoire
Djibouti
Equatorial Guinea
Eritrea
Eswatini
Ethiopia
Gabon
Gambia
Ghana
Guinea
Guinea-Bissau
Kenya
Lesotho
Liberia
Madagascar
Malawi
Mali
Mauritania
Mozambique
Namibia
Niger
Nigeria
Rwanda
São Tomé and Príncipe
Senegal
Sierra Leone
Somalia
South Africa
South Sudan
Sudan
Tanzania
Togo
Uganda
Zambia
Zimbabwe
Asia
Bangladesh
Cambodia
India
K
 orea, Democratic
People's Republic
Mongolia
Myanmar
Nepal
Pakistan
Philippines

Note: Please see key on the next page.

180
 04

TABLE 7.
Distributed Renewables Policies for Electricity Access, Selected Countries, 2020 (continued)

Country National Plans and Targets Regulatory Policies Non-Regulatory Policies

sions (connection

guarantees, etc.)
energy access in

Fiscal incentives
and legal provi-

frameworks and

Public financing
renewables for

renewables for

Tendering, call
energy access

energy access

Adminis­trative

licencing, etc.)

or competitive

(loans, grants,
renewables in

plan/strategy
of distributed

plan/strategy
INDC or NDC

for proposals

(import duty,
codes, tariff,
Distributed

Integration
Distributed

Grid arrival

subsidies,
standards
Technical

VAT, etc.)
Quality/
process
targets

Central and South America

Guatemala
Haiti
Honduras
Panama
Middle East
Syria
Yemen

DISTRIBUTED RENEWABLES
FOR ENERGY ACCESS
Note: The list includes only countries that have an electrification rate below 95% according to the IEA World Energy Outlook 2020 Electricity Access Database
(except for India and the Philippines). The top 20 access-deficit countries are the 20 countries with the highest electricity access-deficit populations. These are
Angola, Bangladesh, Burkina Faso, Chad, the Democratic Republic of the Congo, Ethiopia, India, Kenya, the Democratic People’s Republic of Korea, Madagascar,
Malawi, Mozambique, Myanmar, Niger, Nigeria, Pakistan, Sudan, Tanzania, Uganda and Yemen.
INDC and NDC refers to countries' (Intended) Nationally Determined Contributions towards reducing greenhouse gas emissions under the United Nations
Framework Convention on Climate Change; VAT = value-added tax.
Source: See endnote 241 for this chapter.

Existing national policy or tender framework (could include sub-national)

New (one or more policies of this type)
National tender held in 2020
Removed
Top 20 access-deficit countries

TABLE 8.
Distributed Renewables Policies for Clean Cooking Access, Selected Countries, 2020

Country National Plans and Targets Regulatory Policies Non-Regulatory Policies

Tendering, call

subsidies, etc.)
Administrative
Clean cooking

or competitive

and standards
Clean cooking

(loans, grants,
clean cooking
Integration of

for proposals

(import duty,
access plan/

frameworks
in INDC or

provisions

incentives
Technical

VAT, etc.)
financing
in energy

and legal

Quality/
process
strategy
targets

Public

Fiscal
NDC

Africa
Ethiopia
Ghana
Kenya
Rwanda
Uganda
Asia
Bangladesh
China
India
Nepal
Central and South America
Guatemala

Note: The top 20 access-deficit countries are the 20 countries with the highest clean cooking access-deficit populations. These are Afghanistan, Bangladesh,
China, the Democratic Republic of the Congo, Ethiopia, Ghana, India, Indonesia, Kenya, the Democratic People’s Republic of Korea, Madagascar, Mozambique,
Myanmar, Nigeria, Pakistan, Philippines, Sudan, Uganda, Tanzania and Vietnam.
INDC and NDC refers to countries' (Intended) Nationally Determined Contributions towards reducing greenhouse gas emissions under the United Nations
Framework Convention on Climate Change; VAT = value-added tax.
Source: See endnote 241 for this chapter.

Existing national policy or tender framework (could include sub-national)

New (one or more policies of this type)
National tender held in 2020
Removed
Top 20 access-deficit countries

181