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Over the last decade, investors and governments got used to two supportive trends: relatively cheap capital from low interest rates, and steadily falling costs. However, this changed as the world emerged from the Covid pandemic and into the global energy crisis. In a new era of high interest rates, the impressive growth in renewables deployment is under threat, explain Tim Gould, David Fischer, Paolo Frankl and Heymi Bahar at the IEA.
WARNING: SIGN-IN You need to be a member of Energy Central to access some features and content. Please sign-in or register to continue. As the world deals with an unprecedented global health crisis, the economic shock waves have rippled through the renewable energy sector, threatening to derail its progress.
Last year’s COP21 summit saw global economic powers and leading greenhouse gas emitters—including the United States, China, and India—commit to the most ambitious clean energy targets to date. Bolstered by sharp reductions in costs and supportive government policies, renewable power spread globally at its fastest-ever rate in 2015, accounting for more than half of the world’s additional electricity capacity.
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