Auditing company: Rapid growth of renewable energy is expected

Currently, particularly favorable conditions are being created for the rapid growth of renewable energy, according to the study “EY Renewable Energy Country Attractiveness Index” by the auditing company EY (formerly “Ernst & Young”), which is being conducted for the 58th time worldwide.

EY representatives told LETA that various factors are currently present: market demand and supply, the development of efficient technologies, changes in national policies, the growing importance of environmental, social and governance considerations in society and business, and the willingness of investors to invest in green energy capacity. contribute to the significant growth of renewable energy.

The audit firm’s study shows that last year, despite the pandemic, global investment in renewable energy generation increased by 2% to $ 303.5 billion, while the installation of renewable energy capacity was up 45% higher than in 2019, reaching 265 gigawatts (GW ), the fastest growth since 1999.

In the EY Renewable Energy Attractiveness Index, which reflects the assessment of the renewable energy investment environment and its feasibility, the United States ranks first, followed by China, India, France, the United Kingdom and Germany. The Baltic States have not been included in the top 40 list.

EY partner in the Baltics Nauris Kļava said that in the case of the Baltics, our experts point to different challenges in each country. Latvia has a good starting position in the field of renewable energy due to the already large share of hydropower, but in order to achieve 50% of energy consumption from renewable resources by 2030, Latvia also needs to introduce new capacities, mainly through wind and biomass energy development. In the coming years, Latvia must make practical progress in introducing new renewable energy capacity.

In turn, the biggest challenge for Lithuania in recent years has been the strengthening of energy independence, which is currently also envisaged in the ambitious plan to achieve full energy independence by 2050. Estonia’s challenge is the use of relatively large carbon-intensive oil shale, and reducing emissions will require a rapid transition to renewable energy solutions, Kļava noted.

The EY study notes both examples of wind energy growth and investments in solar and biomass energy. For example, experts draw attention to the example of France, which has set aside 750 megawatts (MW) of offshore wind energy capacity in certain areas on the west coast of the country and this area could be increased to 2 GW in the future. In Belgium, meanwhile, offshore wind will generate 10% of the country’s electricity demand this year. In the USA, on the other hand, it is forecasted that next year the installed capacity of solar energy in the amount of 16 GW will overtake the introduction of new wind energy capacity, which is planned at the level of 6 GW.

The report also reveals the challenges for the development of renewable energy in Eastern Europe, such as Poland maintaining a high (70%) share of coal in electricity generation and a commitment to close coal mines by 2049, a serious task given the sector’s employment of around 80,000.