According to International Energy Agency (IEA) data, countries worldwide dramatically boosted their use of renewable energy sources in 2022.
Based on the statistics, countries installed up to 404 gigawatts of new renewable producing capacity in 2022 alone, around 40% more than was added in 2021.
Nikkei Asia highlights that China, which added nearly 180 GW of new renewable producing capacity in 2022, more than Japan's whole installed capacity, was primarily responsible for the surge. Since 2020, China has added approximately 460 GW of capacity.
Countries Shift to Renewable Energy
IEA's World Energy Outlook 2022 report notes a greater awareness of energy security in the wake of the Ukraine crisis has contributed to the global shift towards renewable energy sources.
The invasion of Ukraine emphasized the vulnerability of countries dependent on imported fossil fuels, such as natural gas and oil, and prompted a renewed emphasis on domestic renewable energy sources.
For example, even one year after the invasion, Japan still gets substantial fossil fuels from Russia. Japan purchased 747,706 barrels of Russian crude oil in January, marking the first import of Russian crude oil in eight months, according to S&P Global.
Nonetheless, renewable energy accounts for only a tiny portion of Japan's total electrical supply.
Coal and gas dominate the country's electrical supply, and renewables have recently topped 20% of the total. In response, Nikkei Asia says that legislation has been submitted to encourage more than 150 trillion yen ($1.12 trillion) in public and private investment in decarbonization over the next decade.
In the meantime, research firm ISEP reports that the annual share of electricity generated from renewable sources reached 40% in several European countries in 2021, while the average for Europe as a whole will get approximately 38%, nearly matching the share of electricity generated from fossil fuels.
Governments Adhering to Emission Goals
The shift to renewable energy is being pushed by worries about energy security and the growing urgency of addressing climate change. Renewable energy sources are critical to lowering CO2 emissions and avoiding the worst effects of global warming.
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The IEA report also underlines the world's current energy crisis, with Russia's invasion of Ukraine increasing existing pressures in global energy markets.
Russia has been the world's largest supplier of fossil fuels, but its reductions in natural gas supplies to Europe and European sanctions on Russian oil and coal imports are having a significant influence on global energy trade.
Because of the crisis, spot purchases of natural gas have reached all-time highs, with prices topping USD 250 for a barrel of oil. Coal and oil prices have also reached all-time highs, putting upward pressure on global electricity prices.
German Chancellor Olaf Scholz stated in October 2022 that the ongoing war between Russia and Ukraine must not result in a "worldwide renaissance" of coal energy plants.
The energy crisis has also increased the likelihood of a recession and fueled inflationary pressures.
IEA says that governments have pledged more than $500 billion to protect consumers from the crisis's immediate effects, but longer-term structural adjustments are required to address the underlying weaknesses in global energy markets.
Governments are also taking longer-term initiatives to hasten structural change, with several aiming to increase or diversify the oil and gas supply.
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