The new renewable energy installed capacity marked a new record in 2016, with 161 gigawatts (GW) integrated worldwide. This milestone represented a considerable increase compared to the previous year, raising the total capacity to 2.017 GW.
This growth is mainly distributed between the Photovoltaic solar energy (47%), followed by wind energy (34%) and hydraulic (15,5%), which shows the growing popularity of clean energy sources.
New lower prices for renewable energy
One of the highlights of 2016 was the reduction in the costs of electricity from renewable sources. In recent contracts, the Renewable electricity price was set at just $0,05 per kilowatt/hour, thus surpassing the costs of fossil fuels and nuclear energy in countries such as Denmark, Egypt, Mexico and India. This makes Renewable energy is an unquestionably competitive and cheap option.
In addition, some countries achieved peak moments where electricity generation from renewable sources exceeded or reached 100% of demand, as was the case in Denmark and Germany.
Flexibility and integration of networks
Contrary to what was previously believed, the integration of large proportions of renewable energies is possible without the need for a "Base load" from fossil fuels or nuclear energy. This has been possible thanks to the flexibility of electrical networks and the implementation of technologies such as network interconnections, systems of storage, heat pumps and electric vehicles.
These technological solutions provide a more efficient electrical system, balancing the variability of renewable generation and further optimizing generation costs.
As more countries develop this flexibility, the number of nations able to handle peaks above 100% renewable generation continues to grow. In 2016, Denmark reached a peak of 140 % and Germany of the 86,3 %.
Impact on CO2 emissions
The increase in installed capacity of renewable energies not only represents economic and technological progress, but also has a strong positive impact on environmental sustainability. In 2016, the stability of emissions of CO2 for the third consecutive year This was an encouraging figure, especially considering that the global economy grew by 3%, as did energy demand.
The use of renewable energy, combined with the reduction in coal use, has been one of the key factors in keeping emissions under control, highlighting that, during that year, renewables contributed the 24,5% of the world's electricity.
Innovations in storage and mini-grids
Another important advance in 2016 was the increase in energy storage capacities. It is estimated that 0,8 GW of new storage capacity came into operation, resulting in a total of approximately 6,4 GW by the end of the yearThis technology provides the flexibility to handle the intermittency of sources such as solar and wind.
The Pay-As-You-Go (PAYG) business models, supported by mobile technologies, allowed the markets for mini-grids and autonomous systems will develop at remarkable speeds. In 2016, investments in this sector increased significantly, reaching XNUMX million euros. 223 million, a considerable increase compared to 2012, when investments in PAYG solar companies barely reached 3 million.
Challenges to achieving the goals of the Paris Agreement
Not all was good news in 2016. Despite the significant progress in renewable energies, Global investments in new facilities decreased by 23% compared to 2015. This was mainly due to the lower costs of solar and wind technologies, and the slowdown in some emerging markets like China and Japan.
Developing countries experienced a 30% drop in investments and in developed countries investments fell by 14 %However, these figures do not necessarily reflect a loss of interest, but rather a combination of factors such as the reduction in the average cost of technologies and the postponement of some large-scale projects.
Fossil fuel subsidies They continue to represent an obstacle, something that many countries have not yet overcome. In 2014, it was established that the reason was 4:1, with governments investing four times more in fossil fuels than in clean energy.
The key role of renewable technologies in the future
To achieve the objectives of the Paris Agreement To limit global temperature rise to less than 2°C, it is crucial that governments continue to promote renewable energy and transition to these technologies. Creating long-term policies that encourage investment and research into new technological solutions is vital to accelerate this transition.
In this regard, governments should gradually eliminate the fossil fuel subsidies and redirect these funds towards the Research in storage and renewable technologies, especially in the heating, cooling and transport sectors, areas where there is still much room for progress.
Christine Lins, Executive Secretary of REN21, noted in 2016: “The world is in a race against time. The single most important thing we can do to reduce emissions is to of CO2 “rapidly, it is necessary to phase out coal and accelerate investments in renewable energy.”
If governments and the private sector continue to invest in the innovation and growth of these technologies, the future of renewable energy promises to be not only profitable, but also sustainable in the long term.
The record installed capacity of renewable energy in 2016 was a clear indicator that the shift towards a clean energy matrix is not only feasible, but inevitable if it continues to be supported by the necessary political and financial decisions.