REN 21: Global Status Report 2022

RENEWABLES 2022
GLOBAL STATUS REPORT
2022

2
EXECUTIVE DIRECTOR
Rana Adib
REN21
PRESIDENT
Arthouros Zervos
REN21 MEMBERS
MEMBERS AT LARGE
Michael Eckhart
David Hales
Kirsty Hamilton
Peter Rae
Arthouros Zervos
GOVERNMENTS
Afghanistan
Austria
Brazil
Denmark
Dominican Republic
Germany
India
Republic of Korea
Mexico
Norway
South Africa
South Australia
Spain
United Arab Emirates
United States of America
SCIENCE AND ACADEMIA
AEE – Institute for Sustainable
Technologies (AEE-INTEC)
Council on Energy, Environment and
Water (CEEW)
Fundación Bariloche (FB)
International Institute for Applied
Systems Analysis (IIASA)
International Solar Energy Society (ISES)
National Renewable Energy Laboratory
(NREL)
National Research University Higher
School of Economics Russia (HSE)
South African National Energy
Development Institute (SANEDI)
The Energy and Resources Institute (TERI)
University of Technology Sydney –
Institute for Sustainable Futures (UTS-ISF)
World Resources Institute (WRI)
INDUSTRY ASSOCIATIONS
Africa Minigrids Developers Association
(AMDA)
Alliance for Rural Electrification (ARE)
American Council on Renewable Energy
(ACORE)
Associação Lusófona de Energias
Renováveis (ALER)
Associação Portuguesa de Energias
Renováveis (APREN)
Chinese Renewable Energy Industries
Association (CREIA)
Clean Energy Council (CEC)
Euroheat & Power (EHP)
European Heat Pump Association (EHPA)
European Renewable Energies
Federation (EREF)
Global Off-Grid Lighting Association
(GOGLA)
Global Solar Council (GSC)
Global Wind Energy Council (GWEC)
Indian RenewableEnergyFederation(IREF)
International Geothermal Association (IGA)
InternationalHydropowerAssociation(IHA)
RE100 / Climate Group
RES4Africa Foundation
SolarPower Europe (SPE)
Union International de Transport
Publique (UITP)
World Bioenergy Association (WBA)
World Wind Energy Association (WWEA)
INTER-GOVERNMENTAL
ORGANISATIONS
Asia Pacific Energy Research Center
(APERC)
Asian Development Bank (ADB)
ECOWAS Centre for Renewable Energy
and Energy Efficiency (ECREEE)
Electric Power Council of the
Commonwealth of Independent
States (EPC)
European Commission (EC)
Global Environment Facility (GEF)
International Energy Agency (IEA)
International Renewable Energy
Agency (IRENA)
Islamic Development Bank (IsDB)
Organización Latinoamericana de
Energía (OLADE)
Regional Center for Renewable Energy
and Energy Efficiency (RCREEE)
United Nations Development
Programme (UNDP)
United Nations Environment
Programme (UNEP)
United Nations Industrial
Development Organization (UNIDO)
World Bank (WB)
NGOS
Association Africaine pour
l’Electrification Rurale (Club-ER)
CDP
CLASP
Clean Cooking Alliance (CCA)
Climate Action Network International
(CAN-I)
Coalition de Ciudades Capitales de las
Americas (CC35)
Energy Cities
Fundación Energías Renovables (FER)
Global 100% Renewable Energy
Platform (Global 100%RE)
Global Forum on Sustainable Energy
(GFSE)
Global Women's Network for the
Energy Transition (GWNET)
Greenpeace International
ICLEI – Local Governments for
Sustainability
Institute for Sustainable Energy Policies
(ISEP)
International Electrotechnical
Commission (IEC)
Jeune Volontaires pour l’Environnement
(JVE)
Mali Folkecenter (MFC)
Power for All
Renewable Energy and Energy
Efficiency Partnership (REEEP)
Renewable Energy Institute (REI)
Renewables Grid Initiative (RGI)
SLOCAT Partnership on Sustainable,
Low Carbon Transport
Solar Cookers International (SCI)
Sustainable Energy for All (SEforALL)
World Council for Renewable Energy
(WCRE)
World Future Council (WFC)
World Wide Fund for Nature (WWF)

CROWD-SOURCED
KNOWLEDGE AND DATA

Developing data collection methods that build on a global multi-stakeholder
community of experts from diverse sectors, enabling access to dispersed data and
information that frequently are not consolidated and are difficult to collect.
Consolidating formal (official) and informal (unofficial/unconventional) data gathered
from a wide range of sources in a collaborative and transparent way e.g., by using
extensive referencing.
Complementing and validating data and information in an open peer-review process.
Obtaining expert input on renewable energy trends through interviews
and personal communication between the REN21 team and authors.
Using validated data and information to provide fact-based evidence and to develop a
supportive narrative to shape the sectoral, regional or global debate on the energy
transition, monitor advancements and inform decision processes.

Making data and information openly available and clearly documenting our sources
so they can be used by people in their work to advocate for renewable energy.
Using crowd-sourced data to develop a shared language and create an
understanding as the foundation for collaboration.
Over 650 experts contributed
to GSR 2022, working alongside
an international authoring team
and the REN21 Secretariat.
For more information, see the Methodological Notes section on data collection and validation.
CROWD-SOURCED DATA
AND KNOWLEDGE
More than
2,000 sources
have been used
to write GSR 2022.
The REN21 community is at the heart of REN21's data and reporting culture. Collectively,
hundreds of experts make REN21 reports among the world's most comprehensive crowd-sourced
and peer-reviewed publications on renewables. This unique reporting and verification process
makes REN21 a globally recognised data and knowledge broker.
REN21 reports that carry the *REN21 Crowd-Sourced Knowledge and Data* stamp verify
that this collaborative process was applied:
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RENEWABLES 2022 GLOBAL STATUS REPORT
4

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REN21 is the only global community of actors from science, governments, NGOs and industry
working collectively to drive the rapid uptake of renewables – now!
RENEWABLE ENERGY POLICY NETWORK
FOR THE 21st CENTURY

REN21 works to build knowledge, shape dialogue and debate and communicate these results
to inform decision-makers to strategically drive the deep transformations needed to make
renewables the norm. We do this in close cooperation with the community, providing a platform
for these stakeholders to engage and collaborate. REN21 also connects with non-energy
players to grow the energy discourse, given the economic and social significance of energy.
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 3,000 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, share intelligence and make the renewable voice heard.
REN21 takes all this information to better understand the current thinking around renewables
and change norms. Our publications are probably the world’s most comprehensive
crowdsourced reports on renewables. Each is a truly collaborative process of co-authoring,
data collection and peer reviewing.

Introduction and High-Level Trends . . . . . . . . . . . . . . . . . 35
Power and Electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Industry and Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Climate Change Policy and Renewables . . . . . . . . . . . . . 76
Renewable Energy Targets . . . . . . . . . . . . . . . . . . . . . . . . . 81
Renewables for Economic Development and Recovery . . 82
Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Heating and Cooling in Buildings . . . . . . . . . . . . . . . . . . . 88
Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Bioenergy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Geothermal Power and Heat . . . . . . . . . . . . . . . . . . . . . . . 108
Heat Pumps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Hydropower . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Ocean Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Solar PV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Concentrating Solar Thermal Power . . . . . . . . . . . . . . . . . 134
Solar Thermal Heating and Cooling . . . . . . . . . . . . . . . . . 137
Wind Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
GSR 2022
TABLE OF
CONTENTS
POLICY LANDSCAPE 74
02
MARKET AND
INDUSTRY TRENDS 100
03
GLOBAL OVERVIEW 34
01
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Renewable-Based Energy Access for Resilience . . . . . . . 159
Renewable-Based Energy Access for Gender Equality . . . 160
Small-Scale Off-Grid Solar . . . . . . . . . . . . . . . . . . . . . . . . . 161
Mini-Grids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
Building Sustainable Business Models for DREA . . . . . 166
Clean Cooking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
Electric Mobility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Investment by Economy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Impacts of COVID-19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
Renewable Energy Investment in Perspective. . . . . . . . 181
Divestment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
Shifting Frameworks for Investments in Renewables. . . 184
Renewable Energy and Climate Finance. . . . . . . . . . . . . 187
Energy Storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
Sector Coupling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
Demand Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202
Energy Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
Drivers for Renewables in Cities . . . . . . . . . . . . . . . . . . . . 209
City Energy and Climate Targets . . . . . . . . . . . . . . . . . . . . 210
Financing Renewables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216
Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Energy Units and Conversion Factors . . . . . . . . . . . . . . . 222
Data Collection and Validation . . . . . . . . . . . . . . . . . . . . . . 223
Methodological Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
List of Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
Photo Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
Reference Tables can be accessed through the GSR2022
Data Pack at http://www.ren21.net/gsr2022-data-pack.
Endnotes: see full version online at www.ren21.net/gsr
DISCLAIMER:
REN21 releases issue papers and reports to emphasise the importance
of renewable energy and to generate discussion on issues central to the
promotion of renewable energy. While REN21 papers and reports have
benefited from the considerations and input from the REN21 community,
they do not necessarily represent a consensus among network participants
on any given point. Although the information given in this report is the best
available to the authors at the time, REN21 and its participants cannot be
held liable for its accuracy and correctness.
The designations employed and the presentation of material in the maps
in this report do not imply the expression of any opinion whatsoever
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.
REPORT CITATION
REN21. 2022.
Renewables 2022 Global Status Report
(Paris: REN21 Secretariat).
ISBN 978-3-948393-04-5
INVESTMENT FLOWS 174
05
RENEWABLE-BASED
ENERGY SYSTEMS 192
06
DISTRIBUTED RENEWABLES
FOR ENERGY ACCESS 156
04
RENEWABLES IN CITIES 206
07
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SIDEBARS TABLES
Table 1. Renewable Energy Indicators 2021 . . . . . . . . . . 50
Table 2. Top Five Countries 2021 . . . . . . . . . . . . . . . . . . . . 51
Table 3. Measures to Address Fossil Fuel Price Increases
in Selected Countries, as of Early 2022 . . . . . . . 79
Table 4. Renewable Energy Targets in Military Operations
in Selected Countries, as of End-2021 . . . . . . . . 82
Table 5. Solar PV Mandates at the Sub-national Level
in Selected Jurisdictions, as of End-2021 . . . . . . 87
Table 6. New Financial and Fiscal Policies for
Heat Pumps Adopted in Selected Countries/
Sub-regions, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . 91
Table 7. Estimated Demand Response Capacity in
Selected Jurisdictions in Recent Years . . . . . . . 202
Table 8. Networked Capacity of Selected VPP
Operators Worldwide, as of Early 2022 . . . . . 204
Sidebar 1. Renewables to Support Energy Security . . . . . . 38
Sidebar 2. Jobs in Renewable Energy . . . . . . . . . . . . . . . . . . 58
Sidebar 3. Renewable Energy and Hydrogen . . . . . . . . . . . 62
Sidebar 4. Market and Industry Trends for
Electric Vehicles. . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Sidebar 5. Educating the Workforce for the Energy
Transition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Sidebar 6. Renewable Electricity Generation Costs
in 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
Sidebar 7. Oil and Gas Industry Investments in the
Renewable Energy Transition . . . . . . . . . . . . . . 189
Sidebar 8. Where Are 100%-plus Renewable
Energy Systems a Reality Today? . . . . . . . . . . . 194
BOXES
Box 1. Public Communications Around Fossil Fuel
Disinformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Box 2. Thermal versus Electrical: Data Challenges
for Renewables in Buildings . . . . . . . . . . . . . . . . . . 53
Box 3. Service-based Business Models: Lowering
the Upfront Cost of Renewable Heating . . . . . . . 57
Box 4. Renewables in the Agriculture Sector . . . . . . . . . 61
Box 5. Entry Points for Renewable Energy
in Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Box 6. National Policies to Shield Consumers
from Rising Energy Prices . . . . . . . . . . . . . . . . . . . . . 79
Box 7. Biogas and Biomethane . . . . . . . . . . . . . . . . . . . . . 103
Box 8. Biomass Pellets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Box 9. Operational Principles of a Heat Pump . . . . . . . 115
Box 10. Energy Access in the Health Sector . . . . . . . . . . . . 159
Box 11. Investment in Potential Fossil Fuel
Stranded Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
Box 12. Using Blockchain for Renewable Energy
Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
Box 13. Renewables in Cities at REN21 . . . . . . . . . . . . . . 209
GSR 2022
TABLE OF
CONTENTS
8
Comments and questions are
welcome and can be sent to
gsr@ren21.net

FIGURES
Figure 1. Renewable Energy Global Overview. . . . . . . . . . . . . . . 37
Figure 2. Renewable Energy Share in Total Final Energy
Consumption, in Selected Countries, 2019. . . . . . . . . 41
Figure 3. Renewable Energy in Total Final Energy
Consumption, by Final Energy Use, 2019. . . . . . . . . . . 42
Figure 4. Evolution of Renewable Energy Share in Total Final
Energy Consumption, by Sector, 2009 and 2019. . . . . 43
Figure 5. Renewables in Power, 2021. . . . . . . . . . . . . . . . . . . . . . . . 44
Figure 6. Annual Additions of Renewable Power Capacity,
by Technology and Total, 2016-2021, and to
Achieve Net Zero Scenarios for 2030 and 2050. . . . 45
Figure 7. Shares of Net Annual Additions in Power
Generating Capacity, 2011-2021. . . . . . . . . . . . . . . . . . . . 46
Figure 8. Renewables in Buildings, 2021. . . . . . . . . . . . . . . . . . . . . 52
Figure 9. Share of Renewable Heating in Buildings,
G20 Countries, 2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Figure 10. Global Renewable Energy Employment,
by Technology, 2012-2020. . . . . . . . . . . . . . . . . . . . . . . . . 58
Figure 11. Renewables in Industry and Agriculture, 2021. . . . . . 60
Figure 12. Renewables in Transport, 2021 . . . . . . . . . . . . . . . . . . . . 65
Figure 13. Electric Car Global Stock, Top Countries and
Rest of World, 2015-2021. . . . . . . . . . . . . . . . . . . . . . . . . . 68
Figure 14. Number of Countries with Renewable Energy
Regulatory Policies, 2011–2021. . . . . . . . . . . . . . . . . . . . . 76
Figure 15. Countries with Selected Climate Change
Policies, 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Figure 16. National Net Zero Policies and Status of
Implementation and Renewable Energy
Targets, 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Figure 17. Renewable Energy Targets, 2021. . . . . . . . . . . . . . . . . . . 81
Figure 18. Renewable Energy Feed-in Tariffs and Tenders,
2010-2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Figure 19. Sectoral Coverage of National Renewable
Heating and Cooling Financial and Regulatory
Policies, as of End-2021. . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Figure 20. Coverage of Energy Codes for New Buildings, 2021. . . . 93
Figure 21. National and Sub-National Renewable Biofuel
Mandates and Targets, End-2021. . . . . . . . . . . . . . . . . . 94
Figure 22. Targets for Renewable Power and Electric
Vehicles, as of End-2021. . . . . . . . . . . . . . . . . . . . . . . . . . 96
Figure 23. Hydrogen Roadmaps in Selected Countries,
as of End-2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Figure 24. Estimated Shares of Bioenergy in Total Final
Energy Consumption, Overall and by End-Use
Sector, 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Figure 25. Bioenergy Use for Heating in the EU-27, 2015-2020. . . 104
Figure 26. Global Production of Ethanol, Biodiesel and
HVO/HEFA Fuel, by Energy Content, 2011-2021. . . . 105
Figure 27. Global Bioelectricity Generation, by Region,
2011-2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Figure 28. Geothermal Power Capacity and Additions,
Top 10 Countries and Rest of World, 2021. . . . . . . . 108
Figure 29. Geothermal Direct Use, Top 10 Countries and
Rest of World, 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Figure 30. Example of a Heat Pump with a Co-efficient of
Performance of 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Figure 31. Air-Source Heat Pump Annual Sales, Selected
Markets, 2011-2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
Figure 32. Hydropower Global Capacity, Shares of
Top 10 Countries and Rest of World, 2021. . . . . . . . . 119
Figure 33. Hydropower Global Capacity and Additions,
Shares of Top 10 Countries, 2021. . . . . . . . . . . . . . . . . . 120
Figure 34. Solar PV Global Capacity and Annual Additions,
2011-2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Figure 35. Solar PV Global Capacity, by Country and Region,
2011-2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Figure 36. Solar PV Capacity and Additions, Top 10
Countries for Capacity Added, 2021. . . . . . . . . . . . . . . 127
Figure 37. Solar PV Global Capacity Additions, Shares of
Top 10 Countries and Rest of World, 2021. . . . . . . . . 128
Figure 38. Concentrating Solar Thermal Power Global
Capacity, by Country and Region, 2006-2021. . . . . 134
Figure 39. Thermal Energy Storage Global Capacity and
Additions, 2011-2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
Figure 40. Solar Water Heating Collectors Global Capacity,
2011-2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
Figure 41. Solar Water Heating Collector Additions,
Top 20 Countries for Capacity Added, 2021. . . . . . . 139
Figure 42. Large Solar Heat Plants, Global Annual Additions
and Total Area in Operation, 2011-2021. . . . . . . . . . . . 142
Figure 43. Wind Power Global Capacity and Annual
Additions, 2011-2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Figure 44. Wind Power Capacity and Additions,
Top 10 Countries, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
Figure 45. Global Weighted-Average LCOEs from Newly
Commissioned, Utility-scale Renewable Power
Generation Technologies, 2010-2021. . . . . . . . . . . . . 154
Figure 46. Countries Developing National Cooling Action
Plans for Cooling Access, as of End-2021. . . . . . . . . 158
Figure 47. Volume of Off-grid Solar Products Sold, by Size
and Type of Sale, 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Figure 48. Volume of Off-grid Solar Products Sold, PAYGo
Only, Selected Countries, 2021. . . . . . . . . . . . . . . . . . . . 162
Figure 49. Cookstove Sales by Type, 2014-2019. . . . . . . . . . . . . . 168
Figure 50. Number of People Using Biogas for Cooking, Top
10 Countries in Africa and Asia, 2015 and 2019. . . . . 169
Figure 51. Investment Raised by Clean Cooking Companies
Based on Customer Location, 2014-2020. . . . . . . . . 170
Figure 52. Clean Cooking, Capital Raised by Source and
Type, 2017-2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
Figure 53. Global Investment in Renewable Power and
Fuels, 2011-2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Figure 54. Global Investment in Renewable Power and
Fuels, by Country and Region, 2011-2021. . . . . . . . . . 178
Figure 55. Global Investment in New Power Capacity,
by Type, 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
Figure 56. Sustainable Finance Taxonomies Worldwide, in
Place, Under Development and in Discussion,
Early 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
Figure 57. Estimated Share of Mitigation Finance by Sector
and Technology, 2019/2020 . . . . . . . . . . . . . . . . . . . . . . 187
Figure 58. Range of Annual Renewable Energy Investment
Needed in Climate Change Mitigation Scenarios
Compared Against Recent Investments. . . . . . . . . . . 188
Figure 59. Renewable Energy Spending as a Share
of Total Capital Expenditure, Selected Oil and
Gas Companies, 2020 and 2021. . . . . . . . . . . . . . . . . . 191
Figure 60. Top Countries for Share of Variable Renewable
Electricity Generation, and Maximum Daily
Penetration, 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Figure 61. Longest Uninterrupted Stretch with 100%-plus
Renewable Electricity, Selected Countries or
Regions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
Figure 62. Illustration of Demand-side Flexibility at the
Household Level. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
Figure 63. Share of Urban Population with a Renewable
Energy Target and/or Policy, 2021. . . . . . . . . . . . . . . . 208
Figure 64. Number of Cities with Renewable Energy Targets,
by Region and Sector, 2020 and 2021. . . . . . . . . . . . . 211
Figure 65. Cities with Net Zero Emission Targets and Status
of Implementation, by Region, 2020 and 2021. . . . . 213
Figure 66. Net Zero Emission Targets and Renewable
Energy Targets in Cities with More Than 250,000
Inhabitants, 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
Figure 67. Urban Renewable Energy Policies in Buildings,
by Type, 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
Figure 68. Urban Renewable Energy Policies in Transport,
by Type 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
9

25
25
25
25
25
25
25
8
12
11
19
25
SNAPSHOTS. OVERVIEW
This report features a number of Snapshots (case studies) from around
the world putting forward stories from 2021; where renewables have been
deployed in different end-use sectors (buildings, transport, industry and
agriculture) at the national and sub-national level. These stories showcase
the context, drivers, challenges and achievements, as well as stakeholders
involved and are portrayed through policy, markets investment, energy
access, system integration and cities lenses.
1 South Australia. . . . . . . . . . . . . . page 20
2 Sweden. . . . . . . . . . . . . . . . . . . . . . page 34
3 Egypt. . . . . . . . . . . . . . . . . . . . . . . . . page 47
4 Italy. . . . . . . . . . . . . . . . . . . . . . . . . . page 56
5 Philippines. . . . . . . . . . . . . . . . . . . page 74
6 Bangladesh. . . . . . . . . . . . . . . . . . page 83
7 China. . . . . . . . . . . . . . . . . . . . . . . . page 86
8 Chile. . . . . . . . . . . . . . . . . . . . . . . . . . page 91
9 Cyprus. . . . . . . . . . . . . . . . . . . . . . . page 92
10 Mauritius. . . . . . . . . . . . . . . . . . . . . page 97
11 Argentina. . . . . . . . . . . . . . . . . . . . page 100
12 El Salvador. . . . . . . . . . . . . . . . . . page 111
13 Germany. . . . . . . . . . . . . . . . . . . . . page 117
14 Chad. . . . . . . . . . . . . . . . . . . . . . . . . page 156
15 Africa. . . . . . . . . . . . . . . . . . . . . . . . page 160
16 New Zealand . . . . . . . . . . . . . . . . page 174
17 Spain. . . . . . . . . . . . . . . . . . . . . . . . page 180
18 South Africa. . . . . . . . . . . . . . . . . page 183
19 USA. . . . . . . . . . . . . . . . . . . . . . . . . page 192
20 South Australia. . . . . . . . . . . . . . page 197
21 Serbia . . . . . . . . . . . . . . . . . . . . . . page 206
22 Finland . . . . . . . . . . . . . . . . . . . . . . page 214
23 South Africa. . . . . . . . . . . . . . . . . page 215
24 France . . . . . . . . . . . . . . . . . . . . . . page 216
25 USA . . . . . . . . . . . . . . . . . . . . . . . . . page 217
26 Germany . . . . . . . . . . . . . . . . . . . page 220
10

4
1
2
6
10
5
7
13
9
3
14
15
18
16
23 20
24
22
26
21
17
Featuring
26 renewable
energy success
stories
across the globe.
11

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 Affaires and Climate Action (BMWK)
and the UN Environment Programme. A large share of the research for this report
was conducted on a voluntary basis.
REN21 is committed to mobilising global action to meet the United Nations
Sustainable Development Goals.

ACKNOWLEDGEMENTS
REN21 RESEARCH DIRECTION TEAM
Duncan Gibb
Nathalie Ledanois
Lea Ranalder
Hend Yaqoob
SPECIAL ADVISORS
Adam Brown
Janet L. Sawin (Sunna Research)
CHAPTER AUTHORS
Hagar Abdelnabi
Adam Brown
Toby D. Couture (E3 Analytics)
Ahmed Elguindy
Bärbel Epp (Solrico)
Nicolas Fichaux
Duncan Gibb (REN21)
Fanny Joubert (Ecotraders)
Nathalie Ledanois (REN21)
Rachele Levin
Hannah E. Murdock (REN21)
Lea Ranalder (REN21)
Janet L. Sawin (Sunna Research)
Kristin Seyboth (KMS Research and Consulting)
Jonathan Skeen (The SOLA Group)
Freyr Sverrisson (Sunna Research)
Glen Wright (IDDRI)
RESEARCH AND PROJECT SUPPORT
(REN21 SECRETARIAT)
Nicolas Achury
Thomas André (REN21)
Ines Benachir (REN21)
Aishwarya Dhar (REN21)
Stefanie Gicquel (REN21)
Vibhushree Hamirwasia (REN21)
Gözde Mavili
Peter Stalter
Nematullah Wafa (REN21)
Yu Yuan-Perrin (REN21)
COMMUNICATIONS SUPPORT
(REN21 SECRETARIAT)
Yasmine Abd-El-Aziz, Janice Chantre Raposo, Joanna
Croft, Assia Djahafi, Vincent Eke, Jessica Jones-Langley,
Tammy Mayer, Laura E. Williamson
EDITING, DESIGN AND LAYOUT
Lisa Mastny
Kelly Trumbull
weeks.de Werbeagentur GmbH
PRODUCTION
REN21 Secretariat, Paris, France
SIDEBAR AND BOX AUTHORS
Sonia Al-Zoghoul (International Renewable Energy Agency
– IRENA)
Emanuele Bianco (IRENA)
Adam Brown
Mike Coffin (Carbon Tracker)
Celia García-Baños (IRENA)
Toyo Kawabata (United Nations Environment Programme
– UNEP)
Arslan Khalid (IRENA)
Nathalie Ledanois (REN21)
Hannah E. Murdock (REN21)
Pablo Ralon (IRENA)
Lea Ranalder (REN21)
Michael Renner (IRENA)
Peter Stalter
Michael Taylor (IRENA)
REGIONAL CONTRIBUTORS
CENTRAL AND EAST AFRICA
Mark Hankins (African Solar Designs); Fabrice Fouodji
Toche (Vista Organisation for Education and Social
Development in Africa)
LATIN AMERICA AND CARIBBEAN
Aliosha Behnisch, Gonzalo Bravo, Ignacio Sagardoy
(Fundación Bariloche)
MIDDLE EAST AND NORTH AFRICA
Akram Almohamadi, Sara Ibrahim, Maged K. Mahmoud
(Regional Center for Renewable Energy and Energy
Efficiency – RCREEE)
SOUTHERN AFRICA
Kizito Sikuka (Southern African Research and
Documentation Centre – SARDC)
Note: Some individuals have contributed in more than
one way to this report. To avoid listing contributors
multiple times, they have been added to the group where
they provided the most information. In most cases, the
lead country, regional and topical contributors also
participated in the Global Status Report (GSR) review
and validation process.
13

LEAD COUNTRY CONTRIBUTORS
Australia
Mike Cochran (APAC Biofuels Consulting
Australia); Richard Day, Rebecca
Draysey, Maria Kosti, Jade Kraus,
Simone Mazengarb (Government of
South Australia); Sharon Denny (Global
Futuremakers); Veryan Patterson Hann
(Australian Minerals and Energy Skills
Alliance – AUSMESA)
Austria
Jasmin Haider (Austrian Federal Ministry
for Climate Action – BMK)
Brazil
Suani Coelho (University of São Paulo)
China
João Graça Gomes, Juan Jiang, Xu Zhang
(Sino-Portuguese Centre for New Energy
Technologies); Qin Haiyan, Guiyong
Yu, Hui Yu (Chinese Wind Energy
Association); Frank Haugwitz (Asia
Europe Clean Energy)
Colombia
Andres Rios (ERCO Energía)
Denmark
Jonas Hamann (Danfoss)
France
Romain Zissler (Renewable Energy
Institute)
Germany
Roman Buss (Renewables Academy –
RENAC); Sebastian Hermann (German
Environment Agency); Detlef Loy (Loy
Energy Consulting)
Greece
Ioannis Tsipouridis (Research Center at
Tum Kenya)
India
Sreenivas Chigullapalli (Indian Institute
of Technology Bombay); Amit Saraogi
(Oorja Development Solutions Limited);
V. Subramanian (Vasudha); Daksha Vaja
(Community Science Centre Vadodara)
Indonesia
Marissa Malahayati (National Institute
for Environmental Studies)
Japan
Hironao Matsubara (Institute for
Sustainable Energy Policies); Stone
Matsumoto (Ferris University)
Mexico
Genice Grande-Acosta (National
Autonomous University of Mexico
– UNAM)
Morocco
Lydia Bouazzati (independent consultant)
Portugal
Mariana Carvalho, Miguel Santos, Susana
Serôdio (Portuguese Renewable Energy
Association – APREN)
Russian Federation
Georgy Ermolenko (CIS Electric Power
Council)
South Africa
Sabatha Mthwecu (Solar Rais)
Spain
Gonzalo Martin (Protermosolar);
Silvia Ana Vera García (Institute for
Diversification and Saving of Energy
– IDAE)
Sweden
Abdenour Achour (Chalmers University
of Technology)
Ukraine
Galyna Trypolska (Institute for Economics
and Forecasting, National Academy of
Sciences of Ukraine)
Uruguay
Gabriela Horta (Ministry of Industry,
Energy and Mining)
Zimbabwe
Shorai Kavu (Ministry of Energy and
Power Development)
ACKNOWLEDGEMENTS (continued)

LEAD TOPICAL CONTRIBUTORS
AGRICULTURE
Ramirez Bueno, Michelle Alejandra
Ramirez Bueno (IRENA)
BIOMASS
Jeremy Moorhouse (International
Energy Agency – IEA); H. Matsubara
(independent consultant)
BUILDINGS
Femke de Jong (European Climate
Foundation); Chiara Delmastro (IEA); Ian
Hamilton, Harry Kennard (UCL Energy
Institute); Mark Kresowik (RMI); Benoit
Lebot (Ministry of Ecological Transition,
France); Martin Obermaier (independent
consultant); Nora Steurer (Global
Alliance for Buildings and Construction,
UNEP); Louise Sunderland (Regulatory
Assistance Project), Vincent Martinez
(Architecture 2030), Anna Zinecker
(Deutsche Gesellschaft für Internationale
Zusammenarbeit – GIZ)
CITIES
Constant Alarcon (C40); Amy Bills
(CDP); Emmanuel Biririza, Vincent Kitio
(UN-Habitat); Victoria Burrows (World
Green Building Council – WGBC);
Fairuz Loutfi, Inder Rivera (World
Resources Institute – WRI); Philip Turner
(International Association of Public
Transport – UITP)
CONCENTRATING SOLAR
THERMAL POWER
Candes Arendse (City of Cape Town);
Gerardo Escamilla (IRENA)
DATA AND PYTHON
PROGRAMMING
Nicolas Achury (independent consultant);
Duncan Gibb (REN21)
DISTRIBUTED RENEWABLES
FOR ENERGY ACCESS
Benjamin Attia (Wood Mackenzie Power
Renewables); Christopher Baker-Brian
(Bboxx); Daron Bedrosyan, Juliette Besnard
(World Bank Group); Peter George, Asna
Towfiq (Clean Cooking Alliance); Rana
Ghoneim, Patrick Nussbaumer, Karin Reiss
(United Nations Industrial Development
Organization – UNIDO); Suranjana Ghosh
(Power for All); Jens Jaeger, Gabriele
Pammesberger (Alliance for Rural
Electrification); Aaron Leopold (EnerGrow);
Wambui Mathoni, Jessica Stephens (Africa
Minigrid Developers Association – AMDA);
Divyam Nagpal, Ali Yasir (IRENA); Gustavo
Ponte (Ministry of Energy Brazil); Arnaud
Rouget, Gianluca Tonolo (IEA); Michele
Souza (Empresa de Pesquisa Energética
– EPE); Patrick Tonui (Global Off-Grid
Lighting Association – GOGLA); Leslie
Zambelli (Schneider Electric)
EDUCATION
Leonardo Barreto-Gomez (Austrian
Energy Agency); Samah Elsayed (IRENA);
Debra Rowe (Yale University)
ENERGY SYSTEM INTEGRATION
Galen Barbose, Dev Millstein (Lawrence
Berkeley National Laboratory); Stephan
Bowe (Green Gas Advisors); Robert
Bruckmann (German Energy Agency
– dena); Jaquelin Cochrane, Anthony
Lopez, Katy Waechter, Owen Zinaman
(US National Renewable Energy
Laboratory – NREL); Søren Hermansen
(Samsø Energy Academy); David
Jacobs (International Energy Transition);
Bryant Komo (HECO Hawaii); Gonzalo
Piernavieja Izquierdo (IITC Canarias);
Alexandra Styles (Hamburg Institute);
Ralph Torrie (Corporate Knights)
GLOBAL OVERVIEW
Zuzana Dobrotkova (World Bank Group);
Paolo Frankl (IEA); Tomas Kåberger
(Renewable Energy Institute); Ruud
Kempener (European Commission)
HEAT PUMPS
Caroline Czajko (Heating, Refrigeration
and Air Conditioning Institute of Canada);
Yang Jie (ChinaIOL); Thomas Novak
(European Heat Pump Association);
Koki Watanabe (Heat Pump Thermal
Storage Technology Center of Japan);
Cooper Zhao (Heat Pump Committee of
China Energy Conservation Association)
HEATING AND COOLING
Francois Briens (IEA); Hongzhi Cheng
(Sun’s Vision); Pedro Dias (Solar Heat
Europe); Monika Spörk-Dür, Werner
Weiss (AEE Institute for Sustainable
Technologies – AEE INTEC); Lindsay
Sugden (Delta-EE)
HYDROPOWER
Alex Campbell (International Hydropower
Association)
INVESTMENT
Camille André (UN Green Growth
Knowledge Partnership – GGKP);
Kanika Chawla (Sustainable Energy
for All – SEforALL); Albert Cheung,
James Ellis, Divya Sehgal, Ben Vickers
(BloombergNEF); John Dulac, Deger
Saygin, Cecilia Tam (OECD); Malin
Emmerich, Christine Gruening, Michael
Koenig, Karsten Loeffler (Frankfurt
School); Charlotte Gardes-Landolfini
(International Monetary Fund); Marion Haas
(independent consultant); Sandra Hanni
(International Chamber of Commerce);
Josh Mayer (MSCI); Nicolas Mottis (Ecole
Polytechnique); Elke Pfeiffer (UN Net Zero
Asset Owner Alliance); Frédéric Pinglot
(Schneider Electric)
OCEAN POWER
Ana Brito E. Melo (WavEC); Rémi Gruet,
Lotta Pirttimaa (Ocean Energy Europe)
POLICY
Valerie Bennett (Ontario Energy Board);
Richard Carlson (Pollution Probe); Julia
Levin (Environmental Defense)
TRANSPORT
Stefan Bakker (Netherlands Institute
for Transport Policy Analysis); Cornie
Huizenga (Climate and Environment
Service Group – Shanghai); Nikola
Medimorec, Karl Peet (Sustainable Low
Carbon Transport – SLOCAT Partnership);
Leonardo Paoli, Per Anders Widell (IEA);
Marion Vieweg (Current Future)
WIND POWER
Stefan Gsänger, Jean-Daniel Pitteloud
(World Wind Energy Association –
WWEA); John Hensley (American Clean
Power Association); Ivan Komusanac
(WindEurope); Feng Zhao (Global Wind
Energy Council)
15

PEER REVIEWERS AND OTHER CONTRIBUTORS
Jordi Abadal (Inter-American Development
Bank – IDB); Mussa Abbasi Mussa
(Tanzanian Ministry of Energy);
Mohammed Abdalghafoor (Arab Academy
for Science, Technology Maritime
Transport); Maisarah Abdul Kadir (IRENA);
Abiodun Abiola (University of Rovira I
Virgili); Mahmoud Abou Elenen (General
Electric); Hassan Aboughalma (Geo
Environmental Renewables Consulting
– Georenco); Michael Abrokwaa
(Netherlands Development Organisation
– SNV); Cleophas Achisa (Moi University);
Rob Ackrill (Nottingham Trent University);
Richardson Adesuyi (Centre for Petroleum,
Energy Economics and Law, University of
Ibadan); Ayooluwa Adewole (University
College London); Samuel Adunreke
(Innovea Hubs and Innovea Development
Foundation); Rodrigo Affonso (ASENGE
Engenharia); Sanchit Saran Agarwal
(Indian Institute of Technology – IIT
Roorkee); Florencia Agatiello (Greenmap);
Mohammad Ahmad (National
Biotechnology Development Agency
Nigeria); Shoaib Ahmed Khatri (Mehran
University of Engineering and Technology);
Chinenye Ajayi (Olaniwun Ajayi LP);
Gamze Akarsu (United Nations
Development Programme – UNDP); Omar
Al Sherif (Rural and Renewable Energy
Agency); David Albertani (R20 Regions of
Climate Action); Donee Alexander (Clean
Cooking Alliance); Rind Alhage (SDG7
Youth Constituency); Mujtaba Ali
(University of Lahore); Nevin Alija (Galp
Gás Natural Distribuição); Ali Almarhoun
(King Abdullah University of Science and
Technology); Sami Alnabulsi (Alnabulsi
Co.); Abdullah Al-Najdawi (EDAMA
Association); Mohammad Alnajideen
(Cardiff University); Bara’Ah Alsardi
(Ministry of Energy and Mineral Resources
of Jordan); Anne Amanda Bangasser
(Treehouse Investments LLC); Carolyn
Amon (Deloitte); Camille André (UN
GGKP); Hary Andriantavy (African
Association for Rural Electrification);
Katazina Andrukonyte (Elomatic Ltd);
Abdul Arif (independent consultant);
Charles Arthur (UNIDO); Eros Artuso
(Terra Consult Sarl); Natali Asfour
(EDAMA Association); Mohamed Atef
Kamel (Johnson Controls); Diana
Athamneh (EDAMA Association); Patrick
Atouda Beyala (SOAS University of
London); Faten Attig Bahar (National
Engineering School of Tunis Enit);
Ayotunde Awosusi (Institute for the
Development of Energy for Africa); Shakila
Aziz (United International University);
Abdelkader Baccouche (National Agency
for Energy Conservation Tunisia – ANME);
Miriam Badino (independent consultant);
Rajendra Bahadur Adhikari (Rural Area
Development Programme); As Bahaj
(University of Southampton); Sarah M.
Baird (Let There Be Light International);
Firas Balasmeh (FB Group); Pepukaye
Bardouille (International Finance
Corporation – IFC); Ahmad Bassam
(Jordan Renewable Energy and Energy
Efficiency Fund – JREEEF); Emma Baz
(independent consultant); Martin Behar
Kölln (Congress of Deputies of Spain);
Pablo Benalcazar (Mineral and Energy
Economy Research Institute, Polish
Academy of Sciences); Jean-Philippe
Bernier (Natural Resources Canada); Sunil
Bhatnagar (Sanvaru Technology Ltd.);
Amit Bhatt (WRI India); Faiz Bhutta
(independent consultant); Djibrine Bichara
(independent consultant); Azhan Bin
Hasan (Turner Townsend LLC Qatar
and Qatar Rail); Sara P. Biscaia (JGH-
Group); Bojan Bogdanovic (European
Bank for Reconstruction and Development
– EBRD); Rina Bohle Zeller (Vestas); Alix
Bolle (Energy Cities); David Bourguignon
(Association les Energiques); Salim Bouziri
(Goldbeck Solar GmbH); Alan Bravo (IHS
Markit); William Brent (Husk Power
Systems); Nelson Bunyui Manjong
(Norwegian University of Science and
Technology); Bernardo Joel Carrillo Castillo
(independent consultant); Carlos
Fernando Casillo Lara (CC Sur Servicios
Generales y Proyectos SAC); Gabriele
Cassetti (Energy Engineering Economic
and Environment System Modeling and
Analysis – E4SMA); Julio Cesar Duran
(Argentine National Atomic Energy
Commission – CNEA); Joan Chahenza
(AMDA); Dipal Chandra Barua (Bright
Green Energy Foundation); Chia-Wei
Chao (Taiwan Environment and Planning
Association); Tamojit Chatterjee
(SEforALL); Sanogo Cheick Ahmed
(independent consultant); Xixi Chen (WRI);
Robson Chikuri (Engineering Council of
Zimbabwe); Sacur Chipire (Conselho
Municipal Que Riman); Zvirevo Chisadza
(Zola Electric); Chuck Chuan Ng (Xiamen
University Malaysia); Joy Clancy
(University of Twente); David Clark (Kinetic
Energy Generation Systems); Lanvin
Concessao (WRI); Evaldo Costa (Iscte-
University Institute of Lisbon-Dinâmia’Cet);
Trevor Criswell (IEA); Penelope Crossley
(University of Sydney Law School); Yerlan
Dairbekov (UNDP and Global
Environment Facility); Emil Damgaard
Grann (Ørsted); Alekhya Datta (KPMG
India); Manuel De Araújo (Quelimane
Municipality Council); Emilio Deagosto
(Catholic University of Uruguay);
Christopher Dent (Edge Hill University);
Ashish Dhankhar (GIZ); Nicolas Di
Sbroiavacca (Fundación Bariloche);
Mamadou Diarra (energy consultant);
Abdou Diop (Senegalese Agency for Rural
Electrification – ASER); Patrick Raoul
Djakpou Ngansop (World Trade Marketing
Agency); Kamal Djemouai (independent
consultant); Viktória Döme (Hong Kong
University of Science and Technology);
Anna Dominique Ortiz (ICLEI South Asia);
Paul Dowling (independent consultant);
Serife E Can Sener (Clemson University);
Williams Ebhota (Durban University of
Technology); Mariam El Forgani (GECOL
Company); Noor Eldin Alkiswani (EDAMA
Association); James Ellis (BloombergNEF);
Elgeneid Elqurashi (Navitas Engineering
Contracting Energy Solutions); Antony
Philip Emenyu (Kasese Municipal Council);
Myagmardorj Enkhmend (Mongolian
Renewables Industries Association);
Yasemin Erboy Ruff (CLASP); Ricardo
Esparta (University of São Paulo); Anibal
Espinoza (independent consultant);
Ashkan Etemad (Leadership in Energy
and Environmental Design Iran); Ammar
Ewis (University of Prince Edward Island
Cairo Campus); Jinlei Feng (IRENA); David
Ferrari (independent consultant); Robert
Fischer (Luleå University of Technology);
Benjemar-Hope Flores (Seoul National
University of Science and Technology);
Giulia Forgnone (Euroheat Power);
Mindy Fox (Solar Cookers International);
Rafael Francisco Marques (Absolar); Uwe
R. Fritsche (International Institute for
Sustainability Analysis and Strategy
– IINAS); Joseph Gabut (Papua New
Guinea National Energy Authority); Ahmed
Gaidoum (National Center for Research
Sudan); Maysa Gaidoum (National Center
for Research Sudan); Ahmed Garba
Ahmed (PV Renewable Energy Hub
Nigeria); Daniel Garcia (Fabricantes
Mexicanos en las Energías Renovables A.C
– FAMERAC); Fabio García (Latin
American Energy Organization – OLADE);
Anna Geddes (International Institute for
Sustainable Development – IISD); William
Gillett (European Academies Science
16

Advisory Council); Nidia Grajales
(Enegence); Amy Gray (Stand.Earth); Chris
Greacen (Living Island Institute); Christine
Gruening (Frankfurt School); Flávia Guerra
(United Nations University Institute for
Environment and Human Security); Kushal
Gurung (Windpower Nepal); Marion Haas
(independent consultant); Siena Hacker
(CLASP); Brad Haevner (California Solar
Storage Association); Ahmed Hamza Ali
(Assiut University); Rasmi Hamzeh
(JREEEF); Sandra Hanni (International
Chamber of Commerce); Azhan Hasan
(Turner Townsend LLC Qatar and
MECC Qatar); Ahmed Hassan
(independent consultant); Hazel
Henderson (Ethical Markets Media
Certified B. Corp.); Nelson Hernández
(Academia Nacional de la Ingeniería y el
Hábitat); Gabriela Hernández-Luna
(Autonomous University of the State of
Morelos – UAEM); Gunnar Herzig (World
Forum Offshore Wind); Rainer Hinrichs-
Rahlwes (European Renewable Energies
Federation); Lars Holländer (UNITY
Consulting Innovation); Christian Holter
(The Innovative Solution for Heat and Cold
– SOLID); Catharina Horn (NOW GmbH);
Abdulwahab Ibrahim (University of Ilorin);
Suleiman Ibrahim Abubakar (Energy
Institute); Syed Ishtiaque Ahmed
(MESOLshare Pvt. Limited); Ali Izadi-
Najafabadi (BloombergNEF); Julien
Jacquot (Group for the Environment
Renewable Energy and Solidarity – Geres);
Arnulf Jäger-Waldau (Joint Research
Centre of the European Commission); Alok
Jain (Trans-Consult); Mangesh Jaiswal
(Columbia University); Danielle Johann
(ABRASOL); Sammy Jamar Chemengich
(Alexandria University); Akshay Jamdade
(Central European University); Arne Georg
Janssen (Cities Alliance); Jakob Jensen
Frandsen (Heliac); Anita Jerotich Chebii
(UNEP); Injy Johnstone (Victoria University
of Wellington); Wim Jonker Klunne (Shell
Foundation); Ifeanyi Jude Nwaegbe
(University of Nigeria Nsukka); Jozsef
Kadar (Arava Institute for Environmental
Studies); Elvis Kadhama (Trust Energy
Africa Limited); Lisa Kahuthu (CLASP);
Kajol (WRI); Yusuke Kanda (Toshiba
Energy Systems and Solutions Co.);
Chisakula Kaputu (Sustainable Energy
Environment Ltd); Panayiotis Kastanias
(Ομοσπονδία Εργοδοτών Βιομηχάνων
– OEB); Kamil Kaygusuz (Karadeniz
Technical University); Sjef Ketelars
(GOGLA); Mohamedahmed Khalifa
(Omdurman Islamic University); Amr Khan
(independent consultant); Nazar Khan
(Jamia Millia Islamia University); Varun
Khanna (Clean Energy 4 Africa); Shannon
Keir (WGBC); Siir Kilkis (Scientific and
Technological Research Institution of
Turkey – TÜBITAK); Birol Kilkis (Ostim
Technical University); Ånund Killingtveit
(Norwegian University of Science and
Technology); Hwajin Kim (UNITAR CIFAL
Jeju); Ferenc Kis (Central European
University); Innocent Kisanga (Solar
Homes); Florian Kitt (Asian Development
Bank – ADB); Anvar Kiyamov (Moscow
State Institute of International Relations
– MGIMO University); Shigeki Kobayashi
(Tritent International Corp – TICJ); Michael
Koenig (Frankfurt School); Andriy
Konechenkov (Ukrainian Wind Energy
Association); Maria Kottari (The Energy
Matric Policy Consultancy); Felix
Kriedemann (Solar Heat Europe); Deepak
Kumar (Amity University Uttar Pradesh);
Manashvi Kumar (independent
consultant); Praveen Kumar Chintakayala
(OSAEDA); Manoj Kumar Singh
(independent consultant); Yogesh Kumar
Singh (independent consultant); Diljeet
Kumar Suthar (Pakistan Engineering
Council); Bharadwaj Kummamuru (World
Bioenergy Association); Maryse Labriet
(Eneris Consultants); Elisa Lai (CLASP);
Ferdinand Larona (GIZ); Andrew
Lawrence (Wits School of Governance);
Denis Lenardic (Pvresources.Com);
Stéfane Leny (Business France); Renata
Leonhardt (University of Victoria); Debora
Ley (United Nations Economic
Commission for Latin America and the
Caribbean – ECLAC); Andrea Liesen
(German Solar Industry Association
– BSW Solar); Jiang Lin (University of
California at Berkeley); Christine Lins
(Global Women’s Network for the Energy
Transition – GWNET); Nkweauseh
Reginald Longfor (Sophia University);
Naud Loomans (Eindhoven University of
Technology); Alvaro Lopez-Peña (Alp-
Sustainable Energy); Juergen Lorenz
(ENPOWER Inc.); Juan Roberto Lozano-
Maya (Emerging Leaders in Environmental
and Energy Policy – ELEEP Network);
Katrine Maria Lumbye (Copenhagen
Business School); Ene Sandra Macharm
(GIZ); Mohamad Mahgoub Hamid
(StraConsult); Mohammad Mahmodul
Hasan (Christian Commission for
Development Bangladesh); Jaideep
Malaviya (independent consultant);
Takunda Mambo (Pegasys); Rashed
Manna (EDAMA Association); Ana
Marques Leandro (independent
consultant); Celia Martinez (UNEP); Lionel
Mbanda (North China Electric Power
University); Prakhar Mehta (Friedrich-
Alexander University Erlangen-
Nuremberg); Nezha Mejjad (Hassan II
University); Molly Melhuish (Sustainable
Energy Forum); Jonathan Mhango (FCCA
Finance and Investments); Nik Midlam
(independent consultant); Nyasha Milanzi
(Ashesi University); Alan Miller (University
of Maryland); Anurag Mishra (US Agency
for International Development – USAID);
Emi Mizuno (SEforALL); Ruben
Mnatsakanian (Central European
University); Lina Mobaideen (JREEEF);
Fihiima Mohamed Hassan (independent
consultant); Lawal Mohammed
(independent consultant); Sunil Mohan
Sinha (GAES India); Juan Molina-Castro
(Colombia Inteligente); Ismael Morales
López (Fundación Renovables); Monika
Mörsch (Regionalwerke Baden); Saurabh
Motiwala (IIT Bombay); Nicolas Mottis
(Ecole Polytechnique); Mweetwa Mundia
Sikamikami (Bitpop Engineering); Kruti
Munot (GIZ); Pamela Murphy (IEA Solar
Heating and Cooling – SHC); Abubakar
Musa Magaga (Nigerian Institute of
Transport Technology); Federico Musazzi
(ANIMA Italy); Justine Mwanje (Uganda
Forestry Association); Oleksii Mykhailenko
(Clean Energy Lab); Tanmay Nag
(PricewaterhouseCoopers); Ali Naghdbishi
(Islamic Azad University Iran); Ashlin
Naidoo (City of Cape Town); Paul
Nduhuura (United Nations University ViE);
Priscilla Negreiros (Climate Policy
Initiative); Jean De Dieu Nguimfack
Ndongmo (University of Bamenda HTTTC
Bambili); Daya Nhuchhen (Government of
Northwest Territories); Robert Nichols
(The Changing Climate); Marjan Nikolov
(Center for Economic Analyses); Diana
Caroline Njama (Climate Tracker);
Catherine Njuguna (Power for All);
Chimaobi Nna (GIZ); Syukri M. Nur
(Darma Persada University); Jesse
Nyokabi (Quaise Energy); Solomon
Ojoawo (Axxela Limited); Tomas
Olejniczak (IEA SHC); Martina Otto
(UNEP); Loveth Ovedje (Westfield Energy
Resources Limited); Sem Oxenaar
(Rescoop.eu); Anil Pahwa (Kansas State
University); Juan Paredes (IDB); Fabio
Passaro (Climate Bonds Initiative); Tomasz
Pawelec (UNIDO); Lebeau Pemha Thina
(Association Internationale Pour le
Partenariat et l'émergence en Afrique
– AIPEA); Lisa Pereira (ExO Insight);
Kristian Petrick (Airborne Wind Europe);
Elke Pfeiffer (UN Net Zero Asset Owner
Alliance); Tran Phuong Dong
17

(independent consultant); Frédéric
Pinglot (Schneider Electric); Jean-Daniel
Pitteloud (WWEA); Juan Plá (Instituto de
Nanociencia y Nanotecnología);
Alessandro Polito (European Union);
Pascual Polo (Associacion Solar de la
Industria Termica – ASIT); Edwige
Porcheyre (Enerplan); Joana Portugal-
Pereira (Instituto Alberto Luiz Coimbra de
Pós-Graduação e Pesquisa em
Engenharia – COPPE/UFRJ); Ritesh
Pothan (Dronebase); Luka Powanga
(Regis University and Energy Africa
Conference); Liliana Proskuryakova
(Higher School of Economics – HSE
University); Pep Puigiboix (Eurosolar
Spain); Pallav Purohit (International
Institute for Applied Systems Analysis);
Gerardo Rabinovich (Instituto Argentino
de la Energia); Nariman Rahmanov
(Cleaner Production and Energy
Efficiency Center); Nizomiddin Rahmanov
(Sanoat Qurilish Bank); Swasti Raizada
(IISD); Manivannan Rajan (Comtec
Management Consultants); Christian
Rakos (World Bioenergy Association);
Daya Ram Nhuchhen (Government of
Northwest Territories); Bard Rama (Alfred
Wegener Institute); Thomas Ramschak
(AEE INTEC); Robert Rapier (Proteum
Energy); Mohanad Rashed (Renewable
Energy Engineering Consultants – RE2);
Atul Raturi (University of the South
Pacific); Kandasamy Ravikumar
(Mahatma Gandhi Institute for Rural
Industrialization Wardha); Shayan
Razaghy (Circuit Energy Inc.); Sue Reed
(Nadder Community Energy England); Ari
Reeves (CLASP); Madan B. Regmi
(United Nations); Janeita Reid
(independent consultant); S. Reid (City of
Cape Town); Patricia Reyes-Catalan
(International Renewable Resources
Institute Mexico); Oliver Reynolds
(GOGLA); Maria Riabova (Moscow State
Institute of International Relations
– MGIMO University); Christoph Richter
(SolarPACES); Wilson Rickerson
(Converge Strategies LLC); Eleazar Rivera
(ASHRAE Monterrey); Luis Rodrîguez
(UNDP); Ingrid Rohrer (SEforALL);
Angela Rojas (University of Melbourne);
F. Rosillo-Calle (Imperial College
London); Heather Rosmarin (Renewables
100 Policy Institute); Matthew Russen
(Klynveld Peat Marwick Goerdeler
– KPMG UK); Philip L. Russell (Mexico
Energy News); Jack Saddler (University
of British Columbia); Khalid Salmi
(RCREEE); Hussein Samra (Lebanese
Center for Energy Conservation);
Artashes Sargsyan (Ecoteam Energy and
Environment Consulting); Christian A.
Sarikie (Enda Solar); Missree Satish
Vachhani (Schneider Electric); Dirk Uwe
Sauer (Rwth Aachen University);
Johannes Schmidl (Austrian Renewable
Energy Association); Beatrix Schmuelling
(United Arab Emirates Ministry of Climate
Change and Environment); Janusz
Staroscik (Association of Heating
Appliances Manufacturers and Importers
in Poland – SPIUG); Heleen Schockaert
(REScoop.eu); Nicole Schrön (German
Federal Ministry for Economic Affairs and
Climate); Carlos Segarra González
(independent consultant); Pooja Shah
(DNV); Ali Shahhoseini (Qazvin Islamic
Azad University); Ailly Sheehama (Clean
Energy 4 Arica); Hadia Sheerazi (Center
on Global Energy Policy, Columbia
University School of International and
Public Affairs); Rakesh Shejwal (UNEP);
Fares Shmayssani (independent
consultant); Henry Shongwe
(independent consultant); Wilson Sierra
(Universidad de la República); Pablo Silva
Ortiz (Universidade Estadual de
Campinas – UNICAMP); Nilmini
Silva-Send (Energy Policy Initiatives
Center ); Harpreet Singh (ICLEI South
Asia); George Sizoomu (independent
consultant); Scott Sklar (Environment
Energy Management Institute, George
Washington University); Irene Skoula
(C40); Kamil Sobczak (independent
consultant); Emilio Soberón Bravo
(University of Edinburgh); Karla Solis
(United Nations); Evgeny Solomin (South
Ural State University); Laiz Souto
(University of Bristol); Frank Spencer
(Busvheld Energy); Deepak Sriram
Krishnan (WRI India); Karoline
Steinbacher (Guidehouse); William
Steiner (Hawaii Oil Seed Producers); José
Alberto Stella (Universidad Tecnológica
Nacional); Adrian Stone (City of Cape
Town); Costanza Strinati (Climate Policy
Initiative); Juliana Subtil Lacerda
(independent consultant); Paul Suding
(Elsud); Andrii Sukhoriabov (Synergy);
Siddhesh Suresh Kotavadekar
(independent consultant); Karen Surridge
(South African National Energy
Development Institute); Satrio Swandiko
Prillianto (GIZ); Peter Sweatman (Climate
Strategy Partners); Cecilia Tam
(OECD); Costas Travasaros (Hellenic
Federation of Solar Industries – EBHE);
Yann Tanvez (IFC); Kadir Tas (Kadir Taş
Marketing Consultancy); Johannes
Technau (independent consultant);
Faruk Telemcioglu (Energy Cities
Association); George Theuri (Practical
Action); Richard Thonig (Institute for
Advanced Sustainability Studies
Potsdam); Ye Thu Win (Myanmar Eco
Solutions); Don Thurston (independent
consultant); Ahmed Tidiane Diallo (Mano
River Union); Diocelina Toledo
(Autonomous University of Mexico
State); Diocelina Toledo Vazquez (Center
for Research in Engineering and
Sciences); Tanguy Tomes (independent
consultant); Charity L. Torregosa (ADB);
Megan Tran (Student Energy); Christian
Cyrille Tsombou Kinfak (Ministry of
Public Contracts of Cameroon); Dhiti
Tulyatid (Coordinating Committee for
Geoscience Programmes – CCOP);
Kutay Ulke (Bural Solar); Prachi Ugle
(ESWD 2021 European Wide Initiative);
Rodrigo Valdovinos (Institute of the
Environment – IDMA Chile); Robert Van
Der Plas (Erjee Consulting); Tineke Van
Der Schoor (Hanze University of Applied
Sciences Groningen); Daniel Van
Mosnenck (Belobog Research
Corporation); Tran Van Quang
(independent consultant); Laura Van
Wie Mcgrory (WRI); Nancy Vandycke
(World Bank Group); Csaba Vaszko
(independent consultant); Roberto
Velásquez (Facto Energy); Shardul
Venegurkar (ICLEI South Asia); Vîctor
Hugo Ventura (ECLAC); Walter Vergara
(WRI); Ashish Verma (Adani Group); Ben
Vickers (BloombergNEF); Arnaldo Vieira
De Carvalho Jr (Esconsult International
Inc); Patricia Villarroel Sáez (Regional
Courts of Appeal Chile); Marcela
Vincoletto Rezende (Comerc Energia);
Anant Wadhwa (SEforALL); Toby Walker
(InspiredPLC); Moritz Weigel (The China
Africa Advisory); Ryan Wiser (LBNL);
Jeremy Woods (Imperial College
London); Josina Ximenes (EPE); Xuetong
(ZS Oil Technology Company); Хузмиев
Измаил (State Technological
University); Hideo Yamamoto (ABeam
Consulting Ltd); Peter Yang (Case
Western Reserve University);
Noureddine Yassaa (Commissariat aux
Energies Renouvelables et à l'Efficacité
Energétique – CEREFE); Valeria
Zambianchi (University of Leuven);
Mónica Zamora Zapata (Universidad de
Chile); Yimin Zhang (NREL); Markus
Zimmer (Allianz Research); Xia Zuzhang
(Food and Agriculture Organization of
the United Nations)
18

FOREWORD
In response to an unprecedented public health crisis, countries around the world had hoped to seize the post-COVID-19
opportunity for a green and equitable recovery. Unfortunately, and despite record growth in renewable energy deployment
in 2021, this historic chance has been lost. As of mid-2022, the world was experiencing its biggest energy crisis on record.
Although this crisis was exacerbated by the Russian Federation’s February 2022 invasion of Ukraine, prices for fossil fuels
– coal, oil and natural gas – were already spiking by late 2021, leading to the threat of energy poverty for billions of people.
Despite evidence that renewables are the most affordable energy source to both improve resilience and support
decarbonisation, governments across the world continue to resort to fossil fuel subsidies to keep energy bills under
control. This growing gap between countries’ ambition and action on the ground is alarming and sends a clear warning
that the global energy transition is not happening.
We now stand at a historic crossroads. Instead of continuing to support a fossil fuel-based energy order, which serves
only some and triggers massive natural and economic disasters affecting all countries and citizens, we need to take bold
action to phase out fossil fuels and accelerate the deployment of energy efficiency and renewables. Decision makers can
no longer delay the structural reforms that are urgently needed not only to preserve the climate and the environment but
also to reduce the vulnerability of our economies to geopolitical threats.
The Renewables 2022 Global Status Report documents the progress made in the renewable energy sector. It highlights
the opportunities afforded by a renewable-based economy and society, including the ability to achieve more diversified
and inclusive energy governance through localised energy generation and value chains. Countries with higher shares of
renewables in their total energy consumption enjoy a greater level of energy independence and security.
The report also illustrates the power of a collective intelligence. This year, more than 650 experts have contributed data
and information. I would like to thank all of them and extend particular thanks to the Research Direction Team of Duncan
Gibb, Nathalie Ledanois, Lea Ranalder and Hend Yaqoob; Special Advisors Adam Brown and Janet L. Sawin (Sunna
Research); the many authors; our editors, Lisa Mastny and Kelly Trumbull; our designers, Caren Weeks, Nicole Winter and
Sebastian Ross; and all those who provided data and participated in the peer-review process.
I hope that you will find in this report the knowledge, data, perspective and inspiration to help and support you in your
efforts to make renewable energy the undisputable backbone of our economies and societies.
Rana Adib
Executive Director, REN21
19

Looking Beyond 100% Renewables
South Australia is by far the leader in Australia’s energy transition. In just over 15 years,
the state has transformed its energy system from heavy coal and natural gas reliance to
zero coal and more than 60% renewable electricity, supported by battery storage as well
as gas. In 2021, South Australia generated 63% of its electricity from wind and solar power,
supported by 22 wind farms, 4 solar farms, 4 grid-scale batteries, 2 world-leading home
battery schemes and more than 10 virtual power plants. During nearly half of the days of
2021, renewable energy resources met 100% of the state’s operational demand, bringing
South Australia well ahead of its target for 100% net renewables by 2030.
Following a call for expressions of interest by the South Australian government in early
2021, seven companies from Australia and across the globe were selected to invest and
develop land around Port Bonython on the Eyre Peninsula for hydrogen export, specifically
hydrogen produced using green methods (i.e., renewable hydrogen). The proposed
projects, totalling more than AUD 13 billion (USD 9.4 billion) in investment, could generate
up to 1.8 million tonnes of hydrogen by 2030, both for domestic use and for export.
South Australia has defined an energy export strategy aimed at generating 500% of its
energy needs and making the excess available for global use by 2050. To encourage
investment in energy exports, the state is investing more than half a billion Australian
dollars over four years to accelerate new hydrogen projects and shipping infrastructure in
Whyalla, the gateway to the Eyre Peninsula. Additional locations are being identified around
the Spencer Gulf, including Port Bonython, Port Pirie and Cape Hardy. A memorandum of
understanding has been established with the Port of Rotterdam in the Netherlands, and
export markets in Asia (such as Japan) also are being explored. The renewable hydrogen
strategy also aims to produce green steel and green ammonia for domestic industry use.
Source: See endnote 12 from the Global Overview chapter.
SNAPSHOT. SOUTH AUSTRALIA
ES

EXECUTIVE
SUMMARY
01 GLOBAL OVERVIEW
Renewables experienced yet another year of record growth in
power capacity, despite aftershocks from the pandemic and a rise in
global commodity prices that upset renewable energy supply chains
and delayed projects. The role of renewables in improving energy
security and sovereignty by replacing fossil fuels became central to
discussions, as energy prices increased sharply in late 2021 and as
the Russian Federation’s invasion of Ukraine unfolded in early 2022.
Investment in renewable power and fuels rose for the fourth
consecutive year, reaching USD 366 billion, and a record increase
in global electricity generation led to solar and wind power
providing more than 10% of the world’s electricity for the first
time ever. Strong market rebounds for solar thermal and biofuels,
following declines in 2020, improved the outlook for renewables
in heating and transport. Strengthened political commitments
and rapid growth in sales of heat pumps and electric vehicles
also led to increased renewable electricity use in these sectors.
At the same time, diverse factors continued to slow the global shift
to renewable-based energy systems. A rebound in worldwide
energy demand, which increased an estimated 4% in 2021, was
met largely with coal and natural gas and led to record carbon
dioxide emissions (up 6%, adding more than 2 billion tonnes).
Large sums also continued to be invested in and to subsidise
fossil fuels, with the USD 5.9 trillion in subsidies spent in 2020
equivalent to roughly 7% of global gross domestic product.
Similar to past years, the highest share of renewable energy use
(28%) was in the electricity sector; however, electrical end-uses
accounted for only 17% of total final energy consumption (TFEC).
The transport sector, meanwhile, accounted for an estimated
32% of TFEC and had the lowest share of renewables (3.7%). The
remaining thermal energy uses, which include space and water
heating, space cooling, and industrial process heat, represented
more than half (51%) of TFEC; of this, renewables supplied 11.2%.
As of 2020, modern renewable energy accounted for an
estimated 12.6% of TFEC, nearly one percentage point higher
than in 2019, as the temporary reduction in energy demand
during 2020 favoured higher shares of renewables, while the
share of fossil fuels barely changed.
The slow progress in energy conservation, energy efficiency
and renewables prevents the transition away from fossil fuels
that is necessary to meet global energy demand and reduce
greenhouse gas emissions. A structural shift in the energy system
is increasingly urgent. An energy-efficient and renewable-based
economy is a game changer for a more secure, resilient, low-cost
– and sustainable – energy future.
21

POWER
The renewable power sector took a large step forward,
driven by record expansion in solar photovoltaic (PV) and
wind power.
Despite supply chain disruptions, shipping delays, and surging
prices for wind and solar energy components, renewable power
capacity additions grew 17% in 2021 to reach a new high of
more than 314 gigawatts (GW) of added capacity. The total
installed renewable power capacity grew 11% to reach around
3,146 GW, although this is far from the deployment needed to
keep the world on track to reach net zero emissions by 2050.
During 2021, China became the first country to exceed
1 terawatt of installed renewable energy capacity. Its total
installed capacity of renewables increased 136 GW during the
year, accounting for around 43% of global additions, with China
leading in all technologies except concentrating solar power
(CSP). By year’s end, at least 22 countries had more than 10 GW
of non-hydropower renewable capacity, up from 9 countries in
2011. The share of renewables in net power additions continued
to increase, reaching a record 84% of newly installed capacity.
Renewables generated 28.3% of global electricity in 2021, similar
to 2020 levels (28.5%) and up from 20.4% in 2011. Despite the
progress of renewables in the power sector, the surge in global
energy demand was met mostly with fossil fuels.
BUILDINGS
Renewable energy represents 14.7% of final energy demand
in buildings, supplied mostly by renewable electricity
followed by modern bio-heat.
Energy demand in buildings has continued to increase –
including the energy used to construct buildings as well as to
operate them. Direct use of modern renewable energy supplies
two-thirds of renewable heat in buildings, with the rest coming
from indirect sources such as electricity and district heating. The
use of renewable electricity to generate heat in buildings has
grown 5.3% per year, with electricity’s share of building heating
rising from 2.0% in 2009 to 3.3% in 2019.
A significant share of global heating needs in buildings
continues to be met though the traditional use of biomass in
developing and emerging economies. However, this share fell
from 30% in 2009 to an estimated 26% in 2020.
During 2021, government policy played an important role in
growing the renewable energy use in buildings through pricing,
financial support and regulatory policies. Even though policy
developments indicate rising attention to the use of renewables
in buildings, these measures often exist alongside incentives for
fossil fuel appliances, potentially undermining the effectiveness of
renewable energy policies.
For the first time, solar and
wind power provided
more than 10%
of the world’s
electricity.
22

INDUSTRY AND AGRICULTURE
The share of renewables in industry and agriculture
increased 4 percentage points in a decade, driven mostly
by the electrification of industrial processes.
Renewables represent 16.1% of the industry and agriculture
sector’s total final energy consumption; half of this renewable
energy is used to produce heat (mainly from modern bioenergy,
followed by small amounts of geothermal and solar thermal),
and the other half is renewable electricity. The electrification
of industrial processes has led to growing use of renewable
electricity for industrial heating, which rose 80% during
the decade. Renewable hydrogen demonstration and pilot
projects have been deployed in hard-to-decarbonise sectors
such as steel.
Direct renewable energy policies in industry remained limited in
2021 and were focused mainly on renewable heat applications.
Governments have pledged to support steel and concrete
decarbonisation and also have developed specific industry
decarbonisation roadmaps that include the use of renewable
energy and renewable hydrogen.
TRANSPORT
Transport remains the sector with the lowest share
of renewable energy use, with the overwhelming
contribution coming from biofuels.
Biofuels production bounced back in 2021 to surpass pre-
pandemic levels for both ethanol and biodiesel. Electrification
grew across nearly all transport modes through 2021. Some
regions saw increased interest in hydrogen and synthetic
fuels as transport fuel, with minimal investment in renewable
hydrogen.
Much of the growth in electrification can be attributed to targets
and policy support for electric vehicles, in addition to the rising
economic competitiveness, technological advancement and
model availability of these vehicles. In 2021, electric car sales
totalled 6.6 million worldwide, more than doubling from 2020,
while sales of other electric vehicles such as two- and three-
wheelers and buses also saw significant increases.
Countries with targets for renewable energy in transport have
failed to meet these targets in large part because they lack
supportive policy frameworks that encourage an energy and
transport transition, or because the frameworks that are in
place are ineffective or not enforced.
Renewables shares in total
final energy demand
remained low
in the sectors.
23

02 POLICY LANDSCAPE
Policy support for renewables remained strong throughout
2021, particularly in the power sector.
By the end of 2021, nearly all countries worldwide had in place
a renewable energy support policy, with most support continuing
to occur in the power sector and fewer efforts to accelerate
renewables in buildings, transport and industry. Electrification of
end-uses such as heating and road transport has emerged as a
focus for decision makers.
CLIMATE CHANGE POLICY
Climate change policy commitments accelerated in 2021,
especially as countries announced net zero pledges and
targets in the lead-up to the United Nations climate talks in
Glasgow, Scotland.
Rising interest in decarbonisation is an increasingly important
driver of renewable energy support policies. By the end of 2021,
at least 135 countries and the European Union (EU) had in place
some form of net zero target.
The most common type of fossil fuel ban enacted at the
national and state/provincial level was on coal. Expanded policy
support for decarbonisation of the transport sector included
announcements of bans on fossil fuels for road transport.
RENEWABLE ENERGY TARGETS
Targets for renewables increased in 2021, although most
continued to be implemented exclusively in the power sector.
By the end of 2021, 169 countries had in place some type of target
(either economy-wide or in specific sectors) at the national and/
or state or provincial level to increase the uptake of renewables.
As in previous years, the greatest number of targets were in the
power sector. Many targets in the transport and heating and
cooling sectors expired in 2020, and only a few countries passed
new ones in 2021 to replace them.
By year-end, nearly all
countries had a
renewable
energy policy
in place, mostly
supporting the power
sector.
24

ECONOMIC DEVELOPMENT AND RECOVERY
Increasingly, renewables have been included as core
components of national economic development plans and
strategies.
Concerns related to rising energy prices and the security of
energy supply are increasing policy makers’ interest in including
renewables in economic development plans. Several countries
have used post-COVID recovery plans as opportunities to support
the shift to renewables and have enforced strategies to build the
necessary workforce for the future and re-skill existing workers.
POWER
The number of countries with renewable power policies
again increased in 2021, continuing a multi-year trend.
By year’s end at least 135 countries had some form of renewable
electricity target. As in prior years, auctions, tenders and
other competitive pricing strategies continued to overtake
administratively set pricing policies such as feed-in tariffs. For
small-scale renewable generation, although no rooftop solar PV
mandates for buildings exist at the national level, several states/
provinces have implemented such policies (in particular for new
buildings or during major house renovations).
HEATING AND COOLING IN BUILDINGS
Despite the enormous potential for renewable heating and
cooling in buildings, policy developments remain scarce.
Globally, the supply of heat in buildings remains heavily
dependent on fossil fuels. By the end of 2021, at least
29 countries had committed to renewable heating and cooling
targets. Although this was up from only 19 targets in 2020, it
too reflects the trend of numerous expired targets not being
replaced. Financial incentives remained the most popular
form of support to scale up renewable heating. During 2021,
interest in electrification of heating gained increased attention,
with several countries setting specific targets and support
mechanisms for heat pump installations.
TRANSPORT
As in previous years, policies supporting renewables in
transport were focused mainly on road transport, with rail,
aviation and shipping receiving far less attention.
Although biofuel support policies have been the most common
type of renewable energy policy in the transport sector for
many years, the number of countries with biofuel mandates
has remained unchanged for four years running. Meanwhile,
policy focus has shifted towards the electrification of transport
(particularly road transport), although most transport
electrification policies are not linked explicitly with renewable
power generation.
The industrial sector continued to receive far less policy
attention than other end-use sectors.
Financial incentives remained the most common policy
support for renewable heat in industry in 2021. Renewable
hydrogen has emerged as a potential tool to support industrial
decarbonisation. Although several countries announced
hydrogen support policies in 2021, almost all hydrogen
continues to be manufactured using fossil fuels. By the end of
2021, at least 38 countries and the EU had a hydrogen roadmap
or strategy in place. Interest in using renewables in agriculture
is increasing, in particular related to agrivoltaics.
25

03 MARKET AND INDUSTRY TRENDS
BIOENERGY
Modern bioenergy provided 5.3% of total global final
energy demand in 2020, accounting for around 47% of all
renewable energy in final energy consumption.
In 2020, modern bioenergy provided 14.7 exajoules (EJ) for
heating, or 7.6% of global requirements; two-thirds of this was
used in industry and agriculture and the rest in buildings. Industry
use is concentrated in countries with large bio-based industries
such as Brazil, China, the United States, and India, while use for
buildings occurs mainly in Europe and North America. The use
of bioenergy to fuel district heating systems has grown strongly.
Biofuels – mostly ethanol and biodiesel – provided around 3.5%
of transport energy in 2020. In 2021, biofuel production levels
returned to 2019 levels after falling in 2020 due to reductions in
transport demand due to the COVID-19 pandemic. Nevertheless,
production in 2021 was constrained by high feedstock costs.
Production of ethanol, the most widely used biofuel, increased
26% between 2011 and 2021. Global biodiesel production
doubled between 2011 and 2021, due mainly to higher production
and use in Asia. Production of HVO (hydrotreated vegetable oil,
also known as renewable diesel) rose 36% in 2021.
In the electricity sector, bioenergy’s contribution rose 10% in
2021 and has increased 88% overall since 2011. China remained
the largest generator of bioelectricity, with production rising by
a factor of 4.5 since 2011. The next-largest producers are the
United States, Brazil and Germany, although generation has not
grown significantly in these three countries in recent years. In
contrast, generation has increased strongly in some other Asian
and European countries.
GEOTHERMAL
Geothermal electricity generation totalled around 97 TWh
in 2020, while direct use of geothermal heat reached about
128 TWh (462 petajoules, PJ).
New geothermal power generating capacity of 0.3 GW came
online in 2021, bringing the global total to around 14.5 GW. This
was more than double the additions in 2020 but below the five-
year average of 0.5 GW since 2016. Capacity was added in Chile,
Chinese Taipei, Iceland, Indonesia, New Zealand, Turkey and the
United States.
The most active geothermal power markets have been Turkey
and Indonesia, whereas other historically significant markets
(such as the Philippines) have seen little or no capacity additions
in recent years. During 2016-2021, the top 10 markets by reported
capacity additions (new plant installations) were Turkey (0.9 GW
added), Indonesia (0.7 GW), Kenya (0.2 GW) and the United
States (0.2 GW), followed by Iceland, Chile, Japan, New Zealand,
Costa Rica and Mexico (all less than 0.1 GW). The leading market,
Turkey, has decelerated notably in recent years, possibly due in
part to declining government support (reduced feed-in tariffs).
Worldwide, the capacity for geothermal direct use – direct
extraction of geothermal energy for thermal applications –
totalled an estimated 35 GWth in 2021. Geothermal energy use for
thermal applications grew
by an estimated 12.8 TWh
in 2021 to total around
141 TWh (508 PJ), with
China being the largest
market by far. The top
countries for geothermal
direct use remained (in
descending order) China,
Turkey, Iceland and Japan.
Generation from
renewables
grew more
than 5%
although extreme
weather events affected
production.
26

HEAT PUMPS
In 2020, heat pumps met only around 7% of the global
heating demand in residential buildings, as fossil fuel-
powered heaters and water heaters still comprised around
half of the heating equipment sold.
However, this trend is changing as heat pumps become more
common in new buildings. Globally, air-source heat pumps
continued to dominate the market in 2021, with the top regions
being China, Japan, Europe and North America.
Sales of air-source heat pumps in China peaked in 2017,
whereas in Japan these units have been a common offering
for more than 20 years, and sales are relatively stable. US
heat pump sales have risen steadily and more rapidly than
other heating alternatives in the country. In Europe, heat pump
sales experienced double-digit growth in 2021; the top three
European markets were France, Italy, and Germany, with the
latter experiencing 28% growth for the year.
Various factors, such as technological maturity and the ability to
provide additional flexibility in the electricity network or heating
system, have led governments to integrate heat pumps into their
climate action plans as a key means for decarbonising heating
in buildings. Updates of building codes and regulations together
with purchase subsidies (grants, loans or tax credits) can help
counterbalance the upfront costs of heat pumps, particularly
during building renovations; in new buildings, meanwhile, heat
pumps can be an affordable solution. In 2021 both Ireland and
Germany introduced a strengthened carbon price to balance the
price of electricity relative to fossil gas, while also funding grant
programmes for heat pumps.
HYDROPOWER
The global hydropower market progressed in line with
long-term trends in 2021, with new capacity additions of at
least 26 GW, raising the total global installed hydropower
capacity to around 1,197 GW.
China maintained the lead in capacity additions in 2021, followed
by Canada, India, Nepal, Lao PDR, Turkey, Indonesia, Norway,
Zambia and Kazakhstan.
Despite these continuing additions, global generation from
hydropower fell an estimated 3.5% in 2021 to 4,218 TWh. This is
explained by changes in hydrological conditions, specifically the
significant and sustained droughts that have affected the major
producers in the Americas and many parts of Asia. Climate-
induced changes in operating conditions, such as the loss of
Himalayan glacial icecaps, appear to be causing long-term
change in output.
Large hydropower producers that saw the most significant
declines in generation in 2021 were Turkey (-28.7%), Brazil (-9.1%)
and the United States (-8.8%). Other major markets that showed
more modest annual contractions (but in some instances larger
multi-year declines) included India (-2.2%), Canada (-1.5%) and
China (-1.1%).
Global pumped storage capacity grew around 1.9% (3 GW)
during the year, with most new installations in China.
OCEAN POWER
The resource potential of ocean energy is enormous but
remains largely untapped, and ocean power represents
the smallest portion of the renewable energy market.
Following significant delays to planned deployments, the
industry rebounded in 2021 as supply chains recovered from
disruptions caused by the COVID-19 pandemic. Around
4.6 MW of capacity was added during the year, bringing the
total operating installed capacity to 524 MW. While the focus
remains on small-scale (less than 1 MW) demonstration
and pilot projects, the industry is progressing towards semi-
permanent installations and arrays of devices.
Development activity is concentrated mainly in Europe,
particularly Scotland, but policy support and deployments have
increased steadily in China, the United States and Canada.
Financial and other support from governments is critical for
leveraging private finance and supporting commercialisation of
ocean power technologies.
27

SOLAR PV
Solar PV maintained its record-breaking streak, adding
175 GW of new capacity in 2021 to reach a cumulative total
of around 942 GW.
Global capacity additions of centralised utility-scale solar
PV increased around 20%, with 100 GW of new installations,
driven by the economic competitiveness of solar power and
the attractiveness of power purchase agreements. Utility-scale
PV accounted for the majority of new installations in the United
States, India, Spain and France.
Distributed solar PV installations rose around 25%, adding
75 GW, driven by surging electricity prices that pushed entities
to rely on self-consumption and to reduce their dependency
on the distribution grid, where possible. Self-consumption from
distributed systems played a crucial role in China, Australia,
Germany and Brazil.
After many years of declines, PV module costs jumped an
estimated 57% in 2021 as the cost of raw materials increased
sharply. Factors contributing to rising module costs included
a polysilicon shortage and a rise in the cost of shipping
containers from China, the world’s dominant module producer.
Supply chain disruptions in 2021 highlighted the importance
of domestic production of PV modules, with the United States
extending its import tariff and India setting unprecedently high
solar import duties.
CONCENTRATING SOLAR THERMAL
POWER (CSP)
Global CSP market growth declined in 2021 despite
reductions in the technology cost.
The CSP market contracted to a total cumulative capacity of
6 GW, as the launch of the 110 MW Cerro Dominador plant in
Chile was offset by the decommissioning of nearly 300 MW
of old CSP plants in the United States. The decline of CSP in
the past decade has resulted from competition with solar PV,
policy changes and project failures in the historically dominant
markets of Spain and the United States.
In 2021, more than 1 GW of combined CSP capacity was under
construction in Chile, China, the United Arab Emirates and South
Africa. Most of this is based on parabolic trough technology and
is being built in parallel with thermal energy storage (TES). By
year’s end, 23 GWh of TES in conjunction with CSP plants was
operating across five continents, representing 40% of the global
energy storage capacity outside of pumped hydropower.
Renewables represented
84% of newly
installed
capacities.
28

SOLAR THERMAL HEATING AND COOLING
The global solar thermal market grew 3% in 2021, to
25.6 GWth, bringing the total global capacity to around
524 GWth. China again led in new installations, followed
by India, Turkey, Brazil and the United States.
Annual sales of solar thermal units grew at double-digit rates
in several large markets, including Brazil, France, Greece, India,
Italy, Morocco, Poland, Portugal and the United States. Demand
was up due to increased activities in the construction sector in
many countries, additional support schemes as part of national
economic recovery policies, and rising fossil fuel and electricity
prices globally. Large collector manufacturers benefited more
than small manufacturers from the growing market and continued
to consolidate their market positions. The 20 largest flat plate
collector manufacturers increased production 15%. Chinese large
collector manufacturers continued to expand their portfolios into
renewable heating more broadly, with half of them offering stand-
alone heat pumps and solar heat pump solutions.
Industrial companies around the world are turning increasingly to
a zero carbon heat supply. At least 71 solar industrial heat (SHIP)
solutions, totalling 36 MWth, started operation globally in 2021,
an increase of 8% to bring the total to around 975 SHIP plants.
Another 44 MWth of SHIP capacity was under construction
by year’s end, including the largest SHIP system in Europe
(15 MWth), which will provide process heat for a whey powder
factory in France.
Due to growing interest in the electrification of heating, demand
for PV-thermal (PV-T) or hybrid collectors increased again in
2021. Thirty manufacturers reported sales of PV-T capacity
of at least 88 MWth during the year, up 45% from 61 MWth in
2020. The largest markets for new additions were France, the
Netherlands, Israel, Germany and Spain.
WIND POWER
An estimated 102 GW of wind power capacity was installed
in 2021, including a record 18.7 GW offshore. China led the
market, followed distantly by the United States, Brazil,
Vietnam and the United Kingdom. Annual additions
increased total capacity by 13.5% to more than 845 GW.
While onshore additions dropped relative to 2020, as installations
declined in China and the United States, offshore additions
surged due largely to a dramatic policy-driven rise off the coast
of China. Nearly every region of the world saw record market
growth; not including China, global installations were up more
than 14% in 2021. The economics of wind energy continued to
be the primary driver for new capacity, combined with the need
to increase energy security and to mitigate climate change.
However, the wind sector faces several challenges, including
a lack of grid infrastructure and permitting issues. These were
compounded in 2021 by rising costs due to pandemic-induced
supply chain constraints, labour shortages, shipping backlogs
and rising prices for major raw material inputs. While turbine
prices continued to fall in China, average prices elsewhere rose
to levels not seen since 2015, and major manufacturers reported
losses. Outside of China, the industry is urging an increased
focus on the system value of wind energy rather than solely on
continually declining costs and prices.
Although the offshore segment accounts for a relatively
small portion of global wind power capacity, it is attracting
significant attention. An increasing number of governments
and developers, as well as oil and gas majors and other energy
providers, are turning to floating offshore turbines.
Turbine manufacturers continued to focus on technology
innovation to achieve the lowest possible levelised cost of energy
in response to the transition to renewable energy auctions as
well as rising material costs and other pressures. The industry
also is innovating to address challenges associated with scaling
up production, transport and other logistical issues, and to
enhance the value of wind energy while further improving its
environmental and social sustainability.
29

04 DISTRIBUTED RENEWABLES FOR ENERGY ACCESS
By the end of 2021, 90% of the global population had access
to electricity, although one-third (2.6 billion people) still
lacked access to clean cooking, relying mostly on traditional
use of biomass.
To improve their resilience to shocks – such as climate change,
pandemics, economic fluctuations and conflict – these
populations can benefit from distributed renewables for energy
access (DREA). Energy access and gender equality also are
strongly interlinked and are at the crossroads of the United
Nations Sustainable Development Goals.
In 2021, the market for small off-grid solar devices continued
to face supply issues, shortages, and price increases, although
there were signs of recovery compared to 2020. An estimated
7.43 million off-grid solar lighting products were sold in 2021,
of which around one-third were sold under the pay-as-you go
(PAYGo) model and two-thirds as cash products. The level of
electricity access that these technologies offer is still relatively
low, as 83% of the sales were portable lanterns and small devices,
with solar home systems representing only 17%. Despite efforts
to address the poorest market segments, affordability remains a
major barrier, especially in more remote rural communities with
higher levels of poverty.
Solar PV has been the fastest growing mini-grid technology,
incorporated into 55% of mini-grids and totalling around
365 MW of installed capacity as of 2019. Although national
utilities own many mini-grids, private developers also have
entered the space. These small companies face challenges in
scaling their operational and financial capacity and mobilising
equity. Large-scale portfolio approaches, which can attract
global risk-mitigation facilities and unlock private equity, are
increasing in scope.
A challenge for the productive appliance sector is the price
competition with poorly manufactured, less-efficient products,
many of which are being sold in sub-Saharan Africa. Only a few
countries in the developing world have adopted minimum energy
performance standards for appliances.
Cleancookingsaleshavebeenhamperedbydisruptionsinsupply
chains and demand related to the COVID-19 pandemic. Non-
biomassunitsaccountedforarecord42%ofthecleancookstoves
purchased in 2020. Smart devices were a key breakthrough for
making business models viable, with the emergence of PAYGo
in the clean cooking sector and opportunities for broader uptake
of carbon finance to fund stove programmes. Financing for
clean cooking is shifting
increasingly from grants
to corporate equity. Most
of the capital raised is
concentrated in the top
seven companies. These
funds primarily financed
liquefied petroleum gas
(LPG) stoves (26%),
followed by biomass
(25%) and biogas
systems (19%).
Achieving the target for
universal access to
clean cooking
by 2030 may
fall 30% short.
30

05 INVESTMENT FLOWS
Renewable energy investment reached a record high in
2021 despite impacts from the COVID-19 pandemic.
Global new investment in renewable power and fuels (not
including hydropower projects larger than 50 MW) reached an
estimated USD 366 billion in 2021, a record high. Solar PV and
wind power continued to dominate new investment, with solar PV
accounting for 56% of the total and wind power for 40%. China
continued to represent the largest share of global investment, at
37%, followed by Europe (22%), Asia-Oceania (excluding China
and India; 16%) and the United States (13%). Investment in new
renewable energy projects showed remarkable resilience despite
impacts from the pandemic.
Renewable power installations continued to attract far more
investment than did fossil fuel or nuclear generating plants.
Maintaining the shares of the past few years, investment in
new renewable power capacity accounted for 69% of the total
investment committed to new power generating capacity in
2021. The divestment trend continued in 2021 with more than
1,400 institutional investors and institutions worth more than
USD 39 trillion in assets committing to partially or fully divesting
from fossil fuels.
Although funds divested from fossil fuel companies are not
necessarily re-invested in companies associated with renewables,
changes in broader financing frameworks are increasingly
relevant for renewable energy. Sustainable finance taxonomies
may be relevant for: 1) companies producing or manufacturing
renewable energy technologies, and 2) the owners or operators
of renewable energy assets (such as a utility that operates a wind
farm as part of its broader portfolio). Such stakeholders would
be eligible for the technological screening of the taxonomy and
thereby be pre-screened for interested investors. The number of
sustainable finance taxonomies in use or under development has
increased rapidly since the Paris Agreement was signed in 2015.
A majority (57%) of climate change mitigation finance was
invested in renewables in 2019/2020, dominated by solar PV and
onshore wind energy. The Paris Agreement highlights the need
to make finance flows consistent with the goal of limiting global
temperature rise to 1.5 degrees Celsius. Achieving this goal would
require significant growth in the overall investment in renewables
compared to the last decade.
06 RENEWABLE-BASED
ENERGY SYSTEMS
For millennia, renewables derived from the sun, water and
wind provided the backbone of energy supply for much of the
human population, a reality that was overturned by the rapid
rise of coal, oil and natural gas in the 19th and 20th centuries.
More recently, renewable energy has started to dominate again
in certain parts of the world, particularly for electricity use,
supported by rapid declines in the costs of wind and solar power.
The share of variable renewable energy sources (wind and solar)
in the global electricity mix exceeded 10% for the first time in
2021. In Denmark, the annual share of wind and solar surpassed
50%, while in Ireland, Spain and Uruguay it was above 30%.
So far, no examples exist of fully renewable-based energy
systems that span the electricity, heating and cooling, and
transport sectors; however, the technological, infrastructural
and operational foundations of such systems are now being laid.
The rise of increasingly cost-effective energy storage combined
with greater demand-side flexibility and the expansion of
transmission infrastructure is making it possible for regions
with widely differing resource endowments to transition to fully
renewable-based power systems.
In addition, a growing number of jurisdictions are harnessing
their renewable electricity sources to support the expansion of
renewables to other sectors of energy use. Communication-
enabled heating and cooling technologies such as heat pumps,
thermal storage technologies and air conditioners are helping
to enable higher shares of renewables in the heating and
cooling sector, while renewably powered transport is enabled
by the rise of electric vehicles, which can be charged with 100%
renewable electricity.
31

07
RENEWABLES IN CITIES
City governments used a broad range of targets, policies
and actions to show local commitment to renewables.
By the end of 2021, around 1,500 cities had renewable energy
targets and/or policies. City governments also have taken action
that indirectly supports the shift to renewables, such as setting
net zero targets and targets for electrifying heating, cooling and
transport.
Many challenges remain for cities to take climate and energy
action, including the degree to which national governments grant
their city counterparts regulatory power and access to financial
markets; market rules and energy regulations set at higher levels
of government; and a lack of institutional and human capacity and
awareness of how cities can contribute to the energy transition.
Some local governments have collaborated with their national
governments to realise renewable energy projects, whereas
others have initiated and/or supported legal barriers against
climate and energy action.
DRIVERS FOR RENEWABLES IN CITIES
City governments are motivated to seek solutions that meet
local energy demand while fostering healthy, resilient and
liveable communities.
With the COVID-19 pandemic entering its second year in 2021,
efforts to ensure public health and well-being while supporting
local economic recovery and resilience were top urban priorities.
Another priority in cities has been reducing local air pollution
(and carbon emissions) from the burning of fossil fuels in road
transport, buildings and industry. In the face of rising energy
costs, municipal agendas also have been exploring how to use
renewables to keep costs manageable.
CITY ENERGY AND CLIMATE TARGETS
City governments have given direct support to renewables
deployment and investment by setting specific renewable
energy targets, either for municipal operations or to shift
city-wide energy use.
By year’s end, more than 920 cities in 73 countries had set a
renewable energy target in at least one sector (power, heating
and cooling, or transport). Targets to shift to renewables in
buildings are the most prevalent. In line with global trends, most
city-level renewable transport targets focus on electric vehicles
with around 100 cities having such targets in place.
The global momentum towards emission reduction targets in cities
further accelerated in 2021, with more than 1,100 city governments
having announced targets for net zero emissions. However, only
a few city governments have anchored their net zero pledges in
policy documents or developed plans with specific actions towards
net zero, including the deployment of renewables.
FINANCING RENEWABLES
City governments have used a variety of mechanisms to
finance renewable energy projects.
Options include using their own capital and/or assets to
develop projects; raising funds through bonds, development
finance and bank loans; and leveraging funds provided by
higher levels of government. The available solutions depend on
the context, including existing rules and regulations, ownership
rights for infrastructure, the availability of capital, the ability of
municipalities to collect fiscal revenue and borrow money, and
the potential to mobilise private sector partners. Due to the
spectrum of actors involved, tracking renewable energy finance
in cities remains difficult.
30% of urban
population
live in a city with a
renewable energy target
and/or policy.
32

BUILDINGS
Municipal policies aimed at decarbonising the building
stock vary depending on whether they apply to buildings
under municipal control or to residential, commercial and
industrial buildings.
City governments have used their building assets to install
stand-alone renewable energy systems, where most focus
has been on solar PV. In cases where city governments have
insufficient space to install renewables, or face other constraints,
they have signed agreements to buy the electricity from off-site
projects, mostly via power purchase agreements.
To encourage wider decarbonisation of buildings through
renewablepowerand/orheating,citygovernmentshaveexpanded
their policy portfolios. Typically, regulatory mechanisms such as
building codes that mandate on-site generation of renewables for
electricity and/or heating apply only to new buildings, although
some cities also require this during retrofits and renovations. For
existing buildings, financial and fiscal incentives such as grants,
rebates and tax credits often are used to encourage renewables.
In addition, a total of 59 cities in 13 countries had either passed or
proposed a ban or restriction on cities have banned or restricted
the use of natural gas, oil or coal for space and water heating
and for cooking.
TRANSPORT
City governments have undertaken efforts to decarbonise
urban transport, in addition to reducing personal motorised
transport by expanding walking and biking infrastructure
and public transport systems.
Most efforts have focused on the electrification of municipal
service fleets and public buses as well as the expansion of
metro and light rail systems. Many cities have continued to use
biofuels in transport, with some tapping into urban waste and
wastewater resources as inputs for biofuel production.
Some municipal governments have provided fiscal and financial
support for the purchase of biofuel or electric vehicles, in some
cases targeted at taxi fleets and delivery companies. The most
widespread policy support is measures that enable broader
transport decarbonisation, such as low-emission zones, bans
and restrictions, improving access to charging infrastructure
and preferential parking. By the end of 2021, 270 cities had
established low-emission zones and 20 had passed bans and
restrictions on certain (fossil) fuels or vehicle types.
Low-emission zones
exist in
270 cities.
33

Green Steel Value Chain
In 2016, the Swedish industries SSAB, LKAB and Vattenfall
launched the HYBRIT initiative to decarbonise steelmaking by
replacing coking coal with hydrogen for ore-based steel production.
The initiative aims to produce steel without using fossil fuels,
thereby reducing Sweden’s CO2 emissions 10% by 2026. Finland
joined the consortium in 2018, aiming to reduce its own CO2
emissions by 7%.
In this effort to create the world’s first entirely fossil-free value chain
(from mine to steel), the pilot Luleå facility was commissioned
in 2020 to test using renewable hydrogen to produce sponge
iron for steel. Construction on a hydrogen storage facility started
in May 2021, and SSAB produced its first fossil-free steel in
August. At full capacity, the 100 GWh storage facility will be able
to power a full-size steel mill for three to four days. The project
required SEK 200 million (USD 22.1 million) in investment as well
as SEK 52 million (USD 5.7 million) in support from the Swedish
Energy Agency to build the storage facility.
In 2021, the town of Gällivare was selected as the site for a
demonstration facility for industrial-scale steel production. In
addition, innovation in green steel has continued along the value
chain, with Volvo Group producing a first-of-its-kind vehicle using
SSAB’s green steel, and steel manufacturer Ovako developing a
hydrogen filling station that will use surplus hydrogen to power
Volvo’s next-generation trucks.
Source: See endnote 224 for this chapter.
SNAPSHOT. SWEDEN
01

01
GLOBAL
OVERVIEW
n 2021, renewable energy continued to be
impacted by the COVID-19 pandemic and was
further influenced by economic and geopolitical
developments. Aftershocks from the pandemic and a rise in
commodity prices upset renewable energy supply chains and
delayed projects. Additionally, a sharp increase in energy prices
in late 2021 and the Russian Federation’s invasion of Ukraine in
early 2022 sparked rising discussion on the role of renewables
in improving energy security and sovereignty by replacing fossil
fuels. Meanwhile, international organisations laid out achievable
pathways to a global net zero emission energy system, and a
record number of countries had net zero targets by year’s end.
Amid these events, renewables experienced yet another year
of record growth in power capacity. Investment in renewable
power and fuels rose for the fourth consecutive year, and the
record increase in global electricity generation led to solar and
wind power providing more than 10% of the world’s electricity
for the first time ever. Following a decline in 2020, a strong
market rebound in solar thermal and biofuels improved the
outlook for renewables in heating and transport. Strengthened
political commitments and rapid growth in heat pump and
electric vehicle sales also pointed to increased renewable
electricity use in these sectors.
At the same time, diverse factors continued to slow the global
shift to renewable-based energy systems. A rebound in
worldwide energy demand in 2021, met largely with coal and
natural gas, led to record carbon dioxide (CO2) emissions. Large
sums also continued to be invested in and to subsidise fossil
fuels.
I

Renewables experienced yet another year
of record growth in power capacity in 2021,
despite aftershocks from the pandemic and a rise
in global commodity prices.

The role of renewables in improving energy
security and sovereignty by replacing fossil
fuels became central to discussions, as energy
prices increased sharply in late 2021 and as the
Russian Federation’s invasion of Ukraine unfolded
in early 2022.

For the first time ever, global electricity generation
led to solar and wind power providing more
than 10% of the world’s electricity.

Renewables shares in total final energy demand
remained low in the buildings, industry and
agriculture and transport sectors, where policy
support remains insufficient for the uptake of
renewable energy.

Fossil fuels remain dominant, as evidenced by
the slow progress in renewables. However, a
structural shift in the global energy system is
increasingly urgent.
KEY FACTS
INTRODUCTION AND
HIGH-LEVEL TRENDS
01
35

i Data are for operating plants only,
totalling 1,250 operating plants in 2021
(9 in Australia, 585 in China, 115 in India
and 124 in the United States).
DEVELOPMENTS IN 2021
As in previous years, the greatest success for renewables was in
the power sector. After largely withstanding the impacts of the
COVID-19 pandemic, growth in global renewable power capacity
accelerated in 2021, adding more than 314 gigawatts (GW).1
(p See Table 1.) The market also diversified geographically, with
the top five countries accounting for 71% of all capacity added
(down from 75% in 2020, but still less diverse than in 2019 and
2018).2
(p See Table 2.) Overall, the renewable power capacity
additions reflected market growth of 11%; however, they still
represented only a third of the additions needed annually to
achieve the world’s major goals for net zero carbon emissions.3
Renewable energy comprised 28.3% of the global electricity mix
in 2021, roughly on par with 2020 levels.4
The growth in renewable
energy penetration was mitigated by the overall rise in electricity
demand and by drought conditions that greatly reduced global
hydropower generation.5
(p See Figure 1.) As economic activity
rebounded in 2021, worldwide energy demand increased an
estimated 4%, while CO2 emissions rose 6% to record levels
(adding 2 gigatonnes (Gt), after falling by 5% in 2020).6
Despite
the progress of renewables in the power sector, the surge in
global energy demand was met mostly with fossil fuels.7
Prices for some fossil fuels, notably natural gas, increased
sharply in 2021, reflecting a combination of supply, demand
and investment factors.8
These included a resurgence in
natural gas demand during the year and a supply crunch that
was worsened by low gas stocks in Europe and a reluctance
among international suppliers to increase exports.9
Natural
gas prices rose more than 400% in most markets, leading
to a spike in wholesale electricity prices in major markets
by year’s end.10
Governments responded by freezing prices,
reducing energy sales taxes, and providing financial assistance
to lowincome households, among others.11
High energy prices
(further exacerbated by the Russian invasion of Ukraine) and
increased climate ambitions prompted efforts to speed the shift
to renewables.12
(p See Sidebar 1.)
The International Energy Agency’s (IEA) Net Zero by 2050
scenario, released in May 2021, set the tone for a new norm,
stimulating higher ambition among governments and
corporations.13
In the lead-up to the 26th Conference of the
Parties to the United Nations Framework Convention on Climate
Change (COP26), held in Glasgow, Scotland in November,
17 countries pledged to achieve net zero emissions by 2050 or a
later date, with some countries targeting 2025.14
The European
Commission raised its 2030 target for renewables in total final
energy consumption (TFEC) first to 40% in 2021, then to 45%
in early 2022.15
Also in the lead-up to COP26, 151 countries
submitted new or updated Nationally Determined Contributions
(NDCs) towards reducing their greenhouse gas emissions
under the Paris Agreement.16
The Glasgow Climate Pact that emerged calls on countries to
raise their ambition annually instead of every five years, and, for
the first time in the history of UN climate agreements, it explicitly
acknowledges the need to reduce fossil fuel use.17
During the
meetings, 140 countries agreed to “phase down” unabated
coal power, while numerous companies, countries and public
finance institutions committed to ending public support and
funding for unabated fossil fuels.18
In total, more than 40 countries agreed to stop financing new coal
plants, although commitments to shut down existing capacity
were notably absent in Australia, China, India, and the United
States, which as of 2021 together owned two-thirds of the world’s
operatingi
coal plants.19
During the UN High-Level Dialogue on
Energy in September 2021, the UN Secretary-General announced
a roadmap for “global clean energy for all”, for which governments
and the private sector committed more than USD 400 billion.20
Renewable power
additions
need to triple
to be on track with major
net-zero scenarios.
36

RENEWABLE ENERGY GLOBAL OVERVIEW
Modern renewables
account for
12.6%
of total final energy
consumption (2020)
Total final energy
demand grew
19%
between 2009
and 2019
Fossil fuel subsidies
reached
USD 5.9 trillion
in 2020
At the 2021 UN climate
summit, countries
agreed to a
phase-down of
unabated coal power
366
was invested in
renewables in 2021
A rebound in economic
activity led to a
6%increase
in CO2 emissions
in 2021
Energy-related
emissions account for
three-quarters of
global CO2 emissions
equivalent to
USD 11 million
per minute
135countries
have some form of net
zero target, covering
88 % of global
emissions
Global
CO2
1min
Share of Modern Renewable Energy,
2009, 2019 and 2020
USD
billion
Exajoules (EJ)
400
300
200
100
0
80.7%
Fossil fuels
10.6% Others
8.7%
79.6%
Fossil fuels
78.5%
Fossil fuels
8.8% Others
9.0% Others
11.7%
12.6%
Modern renewables
Modern renewables
Modern
renewables
Energy
demand
dropped in 2020,
yet the share of
fossil fuels barely
changed.
2019 2020
2009
3.9%
4.8%
2.8%
Renewable heat
Hydropower
Other renewables
Biofuels for
transport
Biomass,
geothermal,
ocean, solar
and wind power
1.0%
Biomass,
geothermal
and solar
COVID-19 lockdowns
GLOBAL
OVERVIEW
01
FIGURE 1.
Source: Based on IEA data.
See endnote 5 for this chapter.
37

SIDEBAR 1. Renewables to Support Energy Security
Global prices for oil and natural gas began rising rapidly
in late 2020 as demand recovered following the easing of
COVID-19 restrictions. This trend was exacerbated in early
2022 by the Russian Federation’s invasion of Ukraine, with
prices fluctuating daily. Between 2020 and early 2022, oil
prices rose by a factor of three – returning to pre-2014 levels
of more than USD 100 per barrel – while natural gas prices
in Europe and Asia rose by a factor of six. Global coal prices
doubled in the weeks between late February and early March
2022, with demand rising as coal was used to substitute gas-
fired electricity generation. Price spikes and variability have
major impacts for industry and for domestic consumers and
give rise to strong inflationary pressures.
Most countries depend heavily on imported oil and gas from
relatively few exporting countries. The main oil importers
traditionally have been China, India, the United States, Japan,
and the Republic of Korea, while the main exporters are Saudi
Arabia, the Russian Federation and Iraq. China is the major
importer of natural gas, along with Japan, Germany, and Italy,
while the Russian Federation is the dominant exporter, along
with Qatar, Norway and Australia.
However, import dependence has evolved in the past decade
as some countries have sought to improve domestic energy
productionandtoelectrifytheirconsumption.Forexample,Spain
andtheUnitedKingdomhaveincreasedtheshareofrenewables
in their total final energy consumption, and other countries have
positioned themselves as exporters of renewable hydrogen.
(p See Snapshot: South Australia in Executive Summary.) At the
same time, many European countries have greatly increased
their dependency on fossil fuel imports, making them more
vulnerable to price and supply variations.
In 2020, China imported around 73% of its crude oil and 60%
of its natural gas. India imported nearly 90% of its crude oil
requirements, while Japan and the Republic of Korea produced
only a tiny share of their oil and gas needs. The European
Union (EU-27) imported 97% of its oil and petroleum needs
and 84% of its gas needs. The Russian Federation was
the largest supplier to the EU of both fuels, providing 44%
of gas and 25% of oil imports. In addition, many small and
developing nations are highly dependent on imported oil, and
their economies are especially vulnerable to volatile prices
and risks of supply disruptions.
Heightened concerns about energy security and prices
present both challenges and opportunities for the energy
transition. The recent price hikes have created pressure
on governments to compromise their ambitions to reduce
greenhouse gas emissions in the short and long-term. High
natural gas prices have favoured a return to coal-based
generation and have increased pressure to develop local
fossil fuel resources, including calls to restart fracking for
shale gas (for example, in the United Kingdom). Emissions
rebounded heavily in 2021 due in part to these developments,
and additional investments in fossil fuel infrastructure will
severely impact emission levels for decades to come. Several
countries have opted to scale up production: China plans to
increase coal production by 300 million tonnes (equivalent to
7% of current levels), while the United States has seen a boom
in new fracking and drilling projects.
On the other hand, a strong synergy exists between measures
needed to improve energy security and those associated with
the energy transition, and especially the shift to renewables.
High levels of locally produced renewable energy, coupled
with energy saving and better energy efficiency, improve
energy security, sovereignty and diversity. This helps to reduce
exposure to energy price fluctuations while at the same time
reducing emissions and providing other economic benefits.
38

i The Taxonomy is aimed to frame and define sustainable investments that
substantially contribute to meeting the EU’s environmental objectives. It
identifies energy activities under a life-cycle emission threshold, while fulfilling
specific conditions and obtaining permits within a defined time frame.
ii The current ETS covers emissions from power stations, energy-intensive
industries and aviation within Europe. With Fit for 55, the new ETS, expected
to become operational by 2025, upstream fuel suppliers will be required
to monitor and report the fuel amounts they introduce in the market (via
greenhouse gas emission certificates), thus incentivising the decarbonisation
of fuel products.
iii The Chinese ETS does not clearly promote the shift from coal to
renewables; rather, it incentivises running more-efficient coal-fired plants
versus less-efficient ones.
iv Different governance indicators – such as reporting mechanisms, published
plans, interim targets and leader accountability – are used depending on the
type of stakeholder and its net zero indicator.
GLOBAL
OVERVIEW
01
Frameworks also emerged aimed at shifting energy investment
towards low-emission technologies, some of which support the
development of nuclear energy, carbon capture and storage, and
fossilbased hydrogen. The new EU Taxonomyi
, which defines
the terms under which economic activities may be considered
“sustainable”, covers renewable technologies as well as nuclear
and natural gas.21
The Association of Southeast Asian Nations
(ASEAN) – which aligned its environmental objectives with the
EU Taxonomy – also delivered its first version of a joint taxonomy.22
The EU’s proposed carbon border adjustment mechanism
(CBAM) would place a carbon price on goods imported from
outside the EU.23
The rising regulatory and financial pressure to
shift investment to clean technologies highlights the considerable
risk of stranded assets in the fossil fuel sector.24
(p See Box 11 in
Investment chapter.)
In Europe, the increase in coal generation and related emissions
during 2021 led to a sharp rise in the price of carbon emission
allowances, which were established under the EU Emissions
Trading System (ETS) to encourage companies to reduce
emissions through mitigation efforts and trading of allowances.
The ETS hit record highs of more than EUR 89 (USD 100) per
allowance in 2021 and nearly EUR 100 (USD 113) in early 2022.25
The European Commission proposed extending the scheme and
also introduced a new ETS covering fuel use in road transport
and buildingsii
.26
In mid-2021, China began operating the world’s
largest emission trading systemiii
, regulating more than 2,200
power sector companies.27
With the increased attention to targeting net zero emissions,
by year’s end nearly 85% of the world’s population and 90%
of its gross domestic product (GDP) were covered by some
form of net zero target.28
These targets vary widely in their
application (target date, status, greenhouse gas and scope)
and in the governance indicatorsiv
used for tracking progress.29
Despite this worldwide coverage, less than a third of the
national governments with net zero targets had targets for
100% renewable energy, although 60% of the governments had
economy-wide targets for renewables.30
Higher fossil fuel prices make renewable solutions more
attractive in the short term, with wind and solar now highly
competitive with gas-fired power generation. Rising fossil
fuel prices also have narrowed the cost gap between
biofuels and biomethane and fossil-based transport
fuels, and have improved the cost competitiveness of
bioenergy, solar, geothermal and heat pumps powered by
renewable electricity. Renewable energy solutions can be
implemented quickly – in as little as a year for wind and
solar photovoltaics (PV) where permitting policies and
regulatory regimes are streamlined. Although the risk of
overdependence on imported components (such as PV
modules) could lead to supply insecurity if production is
overconcentrated in a few countries, some countries and
regions have supported the development of domestic or
regional manufacturing value chains. Domestic production
of renewable energy components, or at least a diversified
supply base, have become increasingly important aspects
of energy security policy.
Energy security concerns also have prompted reviews
of energy policies. For example, the EU aims to reduce its
reliance on Russian gas 60% by the end of 2022 and entirely
by 2030, based on measures that include doubling the level
of renewable hydrogen production and ramping up its use.
The newly released REPower EU plan aims to double the
EU’s solar PV and wind capacities by 2025 and to triple them
by 2030.
Germany aims to accelerate its shift to renewable power
– now labelled “freedom energy” – and is seeking a 100%
renewable electricity supply by 2035. It is targeting 80% wind
and solar power by 2030, including a tripling of solar energy
capacity to 200 GW, a doubling of onshore wind energy
capacity to 110 GW and offshore wind energy capacity
of 30 GW. The United Kingdom has considered relaxing
planning constraints on onshore wind farms to facilitate
rapid growth in renewable power and to reduce dependence
on gas imports. Spain is accelerating the approval of up to
7 megawatts (MW) of wind power projects and up to 150 MW
of solar PV projects, and will also permit floating solar PV
systems and facilitate self-consumption.
Japan aims to accelerate its efforts to develop offshore
wind power projects, in response to the potential longterm
increase in oil prices due to the Russian invasion of Ukraine.
Japan’s tender process for wind farms will be revised to take
into account not only the price but also how quickly the
projects can be developed. Globally, the added emphasis on
energy security amplifies the imperative to move as swiftly
as possible to an efficient, renewable-based energy system
that is compatible with ambitious climate goals while also
avoiding dependency on fossil fuels that exposes consumers
and industry to price volatility and political pressures.
39

i Excludes the traditional use of biomass, i.e., the burning of 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.
ii The latest consolidated data available are from 2019. Data from 2020 are based on projections from 2019 data and on 2020 estimates. The unusual energy
trends of 2020 make these estimations highly uncertain, although the general trend should be accurate.
Pushback against the oil and gas industry accelerated during
2021. Courts, executive boards and shareholders increasingly
demanded that companies reduce their emissions and become
more accountable for the environmental, social and climate
impacts of their activities.31
Public opinion continued to shift,
affecting the advertising and marketing industry, as more than
120 agencies in Europe and the United States pledged to not
work with fossil fuel companies due to the apparent conflict
between companies’ climate-friendly advertising campaigns and
their actual strategic alignments.32
(p See Box 1.)
ONGOING CHALLENGES TOWARDS A RENEWABLE-BASED WORLD
The share of renewables in a country’s total final energy
consumption (TFEC) varies depending on the energy mix. The
average renewable share in TFEC among selected countries in
2019 was 17%, up from 15% in 2009.33
During this period, the
renewable share fell in 18 countries, although 9 countries, mostly
in Europe, have achieved high growth and large net increases
in their renewable shares in TFEC.34
(p See Figure 2.) Only
3 countries out of 80 – Iceland, Norway and Sweden – had
renewable shares above 50% in 2019, and 20 countries, mostly
in Europe and Latin America, met at least a quarter of their total
final energy consumption with renewables.35
The main structural reasons for the slow uptake of renewables in
meeting global energy demand include:

consistent increases in energy demand, despite the temporary
decline in 2020 related to the COVID-19 pandemic;

continued use of and investment in new fossil fuels, particularly
coal; and

the adoption of mainly fossil fuels to replace the declining use
of traditional biomass in developing economies.
Moderni
renewable energy accounted for an estimated 12.6% of
TFEC in 2020 (latest data availableii
), up modestly from 8.7% in
2009.36
(p See Figure 1.) This share was nearly one percentage
point higher than in 2019 (11.7%), as the temporary reduction
in energy demand during 2020 favoured higher shares of
renewables.37
Also for this reason, the share of fossil fuels in TFEC
fell temporarily in 2020, to 78.5%.38
BOX 1. Public Communications Around Fossil Fuel Disinformation
Fossil fuel companies allocate billions of dollars each
year to marketing and advertising campaigns that seek to
rebrand their corporate identity as “climate-friendly”, mask
their impact on climate change and position their products
as crucial for local development, small businesses and
consumers. In 2020 alone, industry players spent nearly
USD 10 million on Facebook ads to promote their self-
proclaimed climate actions. Yet oil and gas companies’
investments in renewables correspond to only around 1%
of their total capital investments, while these companies
remain responsible for around three-quarters of global
greenhouse gas emissions.
Some players in the communications field, including
agencies, creatives, and the media, are taking a stand
against these disinformation campaigns. By early 2022, the
Clean Creatives Pledge had brought together a coalition of
265 communication agencies and 700 creatives that refuse
to accept contracts with clients from the fossil fuel industry.
Some major news outlets, such as The Guardian (UK) have
stopped publishing fossil fuel ads in their newspapers. In the
United States, several sub-national governments, including
New York City and the states of Delaware and Minnesota,
have filed legal action against fossil fuel companies on the
grounds of misleading the public. The city of Amsterdam
(Netherlands) aims to ban oil and gas ads from its metro
stations and other public spaces.
40

i All prices and subsidy values are in 2021 constant dollars. This corresponds to the cumulative value of explicit and implicit subsidies during this three-year period.
In 2020, just 8% of the subsidies were explicit (reflecting undercharging for supply costs) and 92% were implicit (reflecting undercharging for environmental costs
and foregone consumption taxes).
GLOBAL
OVERVIEW
01
Overall, renewable energy use grew 4.6% annually on average
(a total of 17.6 exajoules, EJ) between 2009 and 2020, outpacing
growth in both total energy demand (1.2% annually; 41.8 EJ)
and fossil fuels (0.9%; 26.6 EJ).39
As in recent years, renewable
electricity accounted for the largest share of TFEC (6.8%),
followed by renewable heat (4.8%) and transport biofuels (1.0%).40
However, consistent growth in energy demand reduces the
penetration of renewables in TFEC. Although energy efficiency
helps to mitigate this growth, efficiency efforts are not on track
to meet global decarbonisation goals.41
Global energy intensity
improved slightly in 2020 (up 0.5%) and again in 2021 (1.9%),
but this remains far from the 4% improvement that international
experts say is needed.42
In 2021, the renewable energy sector continued to receive
COVID-19 recovery funding, mostly targeting renewable power
and transport. Recovery spending on renewables nearly doubled
between April and December, to USD 677 billion; however, this
represented only 21% of the total amount that governments
allocated to be spent, and was well below the annual support that
fossil fuels receive in subsidies.43
Between 2018 and 2020, more
than USD 18 trillioni
in subsidies was dedicated to fossil fuels,
with the 2020 spending of around USD 5.9 trillion equivalent to
roughly 7% of global GDP.44
Meanwhile, incentives for renewables have remained low and
are less tracked.45
Despite strengthened commitments to
climate change and net zero, many countries have lessened
their support for renewables while bolstering fossil fuel finance.
Between 2017 and 2020, India reduced its financial support for
renewable energy nearly 45% while continuing to increase fossil
fuel subsidies.46
FIGURE 2.
Renewable Energy Share in Total Final Energy Consumption for Selected Countries, 2019
Source: Based on IEA data. See endnote 35 for this chapter.
Note: This figure includes a selection of 80 nations among the largest energy-consuming countries in the world.
Renewable share in
the total final energy
consumption (TFEC)
29
29
29
29
29
29
9
9
9
6
6
4
4
4
3
3
Distribution of countries
0 5 10 15 20 25 30
less
than 10%
10-20%
20-30%
30-40%
40-50%
50%
Iceland
has the largest
renewable share
in TFEC
Countries with
largest increase in
renewable share
(2009-2019)
41

i These key markets are China, Chinese Taipei, Japan, the Republic of Korea, the United States, and Vietnam, representing projected combined installations of
30 GW of offshore wind power during the 2020-2024 period.
ii Due to losses during transformation, electrical applications account for a higher portion of primary energy consumption. See Glossary for definitions.
iii Applications of thermal energy include space and water heating, space cooling, refrigeration, drying, and industrial process heat, as well as 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 energy end-uses that cannot be
classified as electricity demand or transport.
A shortage in renewable energy skills has been identified
as a possible bottleneck in the deployment of infrastructure
and technologies, including renewable power, batteries and
heat pumps.47
For example, meeting the labour needs in
the offshore wind sector in a few of the leadingi
markets is
estimated to require more than 70,000 workers.48
Although in
many cases fossil fuel workers can be re-skilled to support the
changing energy industry, challenges persist in some places
due to salary differences, relocation needs and insufficient
funding for vocational training.49
In 2021, some governments
began dedicating funds and launching programmes to re-skill
and train workers for new “clean energy” jobs, including
renewables.50
(p See Sidebar 5 in Policy chapter.)
As in previous years, in 2019 (latest data available) the penetration
of renewables was lowest in those sectors that consume the
greatest amount of energy. The highest penetration was in the
general use of electricity (such as for lighting and appliances
but excluding electricity for heating, cooling and transport),
which accounted for around 17% of TFECii
.51
Energy use for
transport represented around 32% of TFEC and had the lowest
share of renewables (3.7%).52
The remaining thermaliii
energy
uses, which include space and water heating, space cooling,
and industrial process heat, accounted for more than half (51%)
of TFEC; of this, around 11.2% was supplied by renewables.53
FIGURE 3.
Renewable Energy in Total Final Energy Consumption, by Final Energy Use, 2019
Heating and Cooling
51%
11.2%
Renewable
energy
28.0%
Renewable
3.7%
Renewable
energy energy
Transport
32%
Power
17%
30%
25%
20%
15%
10%
5%
0
Share of Renewable Energy
Increase in renewable
energy in %
2015 2016 2017 2018 2019
+13.5%
+9.7%
+15.1%
42

GLOBAL
OVERVIEW
01
The renewable share of the “worst-performing” sectors has
grown the slowest. Between 2015 and 2019, the renewable share
in transport increased only 0.5 percentage points, and in heating
and cooling it grew only one percentage point.54
The share of
renewables in the power sector, meanwhile, increased more than
three percentage points.55
At the same time, these percentage
point increases corresponded to larger growth of the share in
each sector – 13.5% in power, 9.7% in heating and cooling, 15.1%
in transport.56
(p See Figure 3.)
The following sections
discuss key developments
in the renewable energy
share in power capacity
and electricity generation
as well as in buildings,
industry and transport.57
(p See Figure 4.)
FIGURE 4.
Evolution of Renewable Energy Share in Total Final Energy Consumption, by Sector, 2009 and 2019
Industry
and
Agriculture
Buildings Transport
Power
TFEC Exajoules (EJ)
150
120
90
60
30
0
2019
2009 2019
2009
2019
2009 2019
2009
Renewable energy Others Non-renewable energy
10.7%
14.7%
12.5%
16.1%
19.4%
26.0%
2.4%
3.6%
Renewables provide
a slowly rising share
of the energy use in
all of the sectors
except in
power.
43

Energy demand for power accounts for
less than one-fifth of total final energy consumption
Share of Renewable Energy in Power,
2011 and 2021
Newly installed
capacity in 2021:
Non-power
energy demand
Power
17%
83%
RENEWABLES IN POWER
314.5
GW
135
countries have
renewable power
targets
156
countries have
renewable power
regulatory
policies
Levelised costs
of onshore wind
power and solar PV
are now
cheaper
than fossil fuels
on average
More than
50% of climate
mitigation finance
allocated to
hydropower, solar
PV and wind power
3,146GW
of global installed
renewable power
capacity
R enough to
power all
households
in Brazil
2021
2011
20.4%
Share of renewable electricity
28.3%
Share of renewable electricity
2%
2% 3%
68%
12%
16% 15%
Fossil fuels
62%
Fossil fuels
Nuclear power 10% Nuclear power
10%
Hydropower
Bioenergy
and geothermal
power
Solar
and wind
power
Renewable power
share increased
by almost
8
in the past decade.
percentage
points
FIGURE 5.
44

i Global total consists of solar PV data reported in direct current, and wind power data reported as gross additions.
ii For consistency, the REN21 Global Status Report (GSR) endeavours to report all solar PV capacity data in direct current (DC). See endnotes and Methodological
Notes for further details.
GLOBAL
OVERVIEW
01
Additions by technology (Gigawatts)
500
400
300
200
100
0
Bio-power,
geothermal,
ocean power,
CSP
Hydropower
Wind power
Solar PV
2019
2017 2018
2016 2020 2021
IEA
Net Zero
Scenario
Average
Net Zero
Scenarios
2030 2050
Renewable
power additions
must triple
to be on track with
major net zero
scenarios
+315
GW
POWER
During a year of tentative economic recovery, the renewable
power sector took a large step forward, deploying a record
amount of new capacity and experiencing greater geographic
diversification.58
However, projects continued to be disrupted
by supply chain issues and shipping delays, and a global rise
in commodity prices led to surging prices for wind and solar
power components.59
Renewable power capacity additions grew 17% in 2021 to
reach a new high of more than 314 GWi
of added capacity,
driven by the record expansion in solar PV and wind power.60
(p
See Figure 5.) Worldwide, the total installed renewable power
capacity grew 11% to reach around 3,146 GW.61
However, these
trends remain far from the deployment needed to keep the
world on track to reach net zero emissions by 2050. To reach the
average milestones set by the IEA’s Net Zero scenario by 2050,
and by the World Energy Transitions Outlook scenarios from
the International Renewable Energy Agency, the world would
need to add 825 GW of renewables each year until 2050.62
(p See Figure 6.)
MARKET TRENDS
Most of the global power capacity that was newly installed in 2021
was renewable, continuing the trend since 2012. Even as global energy
markets rebounded, the share of renewables in net power additions
continued to increase, reaching a record 84%.63
(p See Figure 7.)
Solar PV and wind power comprised the bulk of new renewable
power additions, driven by supportive government policies and low
costs. After staying resilient in 2020, these markets saw significant
growth in 2021, with solar PV up 26% and wind power up 7%
(hydropower grew by a much higher 38%).64
A record 175 GW of
solar PVii
was added, accounting for well over half of the renewable
additions.65
This growth occurred despite uncertainty and
disruptions along the PV supply chain related to the ongoing effects
of the COVID-19 pandemic and to commodity price increases.
Although capacity additions for onshore wind power decreased in
2021 compared to 2020, 16 GW of offshore wind additions in China
propelled the market to record-setting overall additions of 102 GW,
representing 32% of the renewable energy total.66
Hydropower
capacity additions reached 27 GW, due to the commissioning of
several large projects in China (as in 2020).67
The remaining renewable
energy additions were from bio-power and, to a lesser extent,
geothermal and ocean power.68
For the first time, the operating
capacity of concentrating solar thermal power (CSP) decreased.69
FIGURE 6.
Annual Additions of Renewable Power Capacity, by Technology and Total, 2016-2021,
and to Achieve Net Zero Scenarios for 2030 and 2050
Note: The Average Net Zero Scenarios comprises the average value
between the values from 2050 coming from the IEA’s Net Zero scenario and
the World Energy Transitions Outlook scenario from IRENA.
45

i In 2011, the countries that exceeded 10 GW of non-hydro renewable power capacity were (in order of total installed capacity) the United States, Germany, China,
Spain, Italy, India, France, the United Kingdom and Brazil. By the end of 2021, 12 countries joined the list: Australia, the Netherlands, the Republic of Korea, Turkey,
Vietnam, Canada, Sweden, Mexico, Poland, Belgium, Denmark and Ukraine.
During 2021, China became the first country to exceed 1 terawatt
(TW) of installed renewable energy capacity.70
Its total installed
capacity increased 136 GW during the year, accounting for around
43% of the total global additions.71
China showed a notable surge in
solar power, representing around 31% of global solar PV additions,
although the country also dominated in capacity additions of
other technologies.72
China accounted for nearly 80% of global
hydropower additions and an estimated 14.5 GW of offshore wind
power additions, more than half of its total previously installed
offshore wind capacity.73
Overall, China led global markets for bio-
power, hydropower, solar PV and wind power.
Countries outside of China added around 179 GW of new
capacity, up 29% from 2020 levels and led by the United States
(42.9 GW), India (15.4 GW), Brazil (10.2 GW), Germany (7.3 GW)
and Japan (7.2 GW).74
China remained the clear global leader in
cumulative renewable energy capacity at year’s end, followed by
the United States (398 GW), Brazil (160 GW), India (158 GW) and
Germany (139 GW).75
At least 40 countries had more than 10 GW of renewable power
capacity in operation by the end of 2021, up from 24 countries in
2011.76
This development is even more striking when hydropower is
excluded, as markets for both solar PV and wind power have grown
dramatically. By year’s end, at least 22 countries had more than
10 GW of non-hydropower renewable capacity, up from 9 countriesi
in 2011.77
The top countries for non-hydro renewable power
capacity per capita were unchanged from previous years: Iceland,
Denmark, Sweden, Germany and Australia.78
(p See Table 2.)
Most renewable power technologies, notably solar PV and wind
power, experienced significant cost declines during the decade.
This largely was the result of a maturing industry, economies
of scale, technological improvements, more competitive supply
chains and increased competition.79
Solar and wind technologies
both have followed experience curves correlated to steep cost
declines for every doubling of deployment.80
Alongside supportive
regulatory and policy frameworks, these cost declines played a
key role in the surge of capacity installations in recent years.
Although 2020 and 2021 highlighted the resilience of renewable
energy markets during a time of economic turbulence,
vulnerabilities also came to light. Prices for key raw material
inputs used in the manufacture of solar PV modules and wind
turbines increased sharply in 2021 due to delays and higher
prices for shipping, labour shortages and other supply chain
constraints. This led to rising prices for modules and turbines.
Outside of China, major wind turbine manufacturers increased
their prices 20% compared with the previous year, although within
China turbine prices fell more than 25% because of competition
between suppliers.81
Prices for power purchase agreements
(PPAs) rose as well in several regions and countries.82
FIGURE 7.
Shares of Net Annual Additions in Power Generating Capacity, 2011-2021
Source: Based on IRENA data. See endnote 63 for this chapter.
0%
50%
100%
Share in Additions to Global Power Capacity
Non-renewable share
Renewable share
2011 2013 2015 2017
2012 2014 2016 2019 2020
2018 2021
84%
renewables in
net additions
46

GLOBAL
OVERVIEW
01
Despite equipment price rises, the global average levelised cost
of energy from solar PV and onshore and offshore wind power
continued to decline.83
(p See Sidebar 6.) This was driven largely
by rising plant capacity factors (i.e., more output per dollar spent)
and, in some markets, by larger projects with greater purchasing
power that have mitigated the increases in total project costs.
In many cases, the installed costs of projects completed in 2021
were based on module and turbine prices that had been locked
in under contracts signed in previous years. Thus, the impact of
increasing costs and prices is expected to be felt more strongly
in 2022 and beyond.
Other drivers for renewable power growth were linked increasingly
to energy security. With rising energy prices further exacerbated
by the Russian invasion of Ukraine, European goods manufacturers
began shutting down operations as electricity prices reached
near-record highs.84
Govern
ments and analysts highlighted the
potential for renewable energy to stabilise power prices and
avoid the price swings that became problematic during 2021.85
Some governments, such as Spain, took action to accelerate the
deployment of renewables for reasons of energy security.86
POLICY DEVELOPMENTS
The renewable power sector continued to enjoy policy support
during the year, mainly in the form of targets and incentives.
The number of countries with targets for renewable electricity
peaked in 2020 (at 137 countries), as the year was a milestone for
target-setting.87
During 2021, at least 51 countries updated their
targets or introduced new ones, leading to 135 countries with
some form of renewable electricity target.88
(p See Snapshot:
Egypt.) Meanwhile, 156 countries had in place regulatory policies
for renewable power, up from 145 in 2020.89
(p See Policy chapter.)
SNAPSHOT. EGYPT
Grid-Connected Small-Scale Solar PV
In 2016, Egypt adopted a plan to facilitate the transition to clean
energy, and the country is targeting 42% renewables in total
electricity generation by 2035. To invest in its solar energy potential,
in 2017 Egypt established the Grid-Connected Small-Scale
Photovoltaic Project (Egypt-PV)i
, which promotes pilot PV projects
to increase small-scale distributed generation while supporting
entrepreneurship, employment and solar capacity. The project
finances up to 25% of the upfront costs of a PV system.
Egypt-PV targets installations in the industrial, educational, tourism,
commercial, residential and public sectors, in addition to promoting
building-integrated PV. It recently targeted the tourism sector in
Sharm El Sheikh, to align with the Green Sharm initiative in the
lead-up to the UN climate conference being held in the city in late
2022. The project also developed the online platform PV-Hub,
which links Egypt’s solar market with stakeholders and accelerates
awareness, investment and implementation.
As of 2021, Egypt-PV had implemented 49 small-scale PV projects in
15 governorates and trained more than 350 people. The 125 individual
systems installed so far have a combined capacity of 11 MW and
produce 17,000 megawatt-hours of electricity annually, benefiting
around 8,800 households and businesses.
i
Egypt-PV is co-funded by the Global Environment Facility and the United Nations
Development Programme, supported by the Egyptian government and implemented
by the Industrial Modernization Centre.
47

i Refers to the total contribution of electricity to TFEC. The share of electricity in “Power”, as shown in Figure 5, has reallocated the amount of electricity used for
heating and transport to those sectors, respectively. See Methodological Notes.
ii In China, the electricity share in TFEC grew from 17% in 2009 to 27% in 2019, and in India it grew from 14% in 2009 to 18% in 2019.
iii Heat pumps can provide both heating and cooling functions by drawing on energy from the ground, ambient air and bodies of water. During operation, they use
an auxiliary source of energy (such as electricity) to transfer energy from a low-temperature source to a higher-temperature sink. When the auxiliary energy used
to drive the heat pump is renewable, so is 100% of the output of the heat pump. (p See Heat Pumps section in Market and Industry chapter.)
Driven by the increasing cost-competitiveness of renewable
power, a shift towards auctions and tenders continued during
the year. Governments outside of China, despite seeing a decline
in auctions in 2021, awarded slightly more capacity than in 2020.90
Overall, 131 countries held renewable energy auctions in 2021, up
from 116 in 2020.91
Despite the trend towards competitive market processes,
feed-in policies remained popular. For the first time in several
years, the number of jurisdictions with such policies grew, from
83 in 2020 to 92 in 2021.92
Several jurisdictions introduced
feed-in policies for the first time, notably some sub-national
regions (such as Guangdong in China) that were aiming to
replace expiring federal-level policy.
Corporate commitments to renewable power also continued
to grow. The amount of renewable power sourced through
corporate PPAs increased by double-digit percentages, up 24%
to more than 31 GW in 2021.93
The Americas continued to lead
regionally in corporate-sourced renewable power, with around
20 GW, up 35% from 2020 levels.94
Corporate sourcing in Europe,
the Middle East and Africa combined grew 19% to reach 8.7 GW.95
In 2021, 45% of the reported electricity consumption of members
of RE100, a global renewables initiative for large corporations,
came from renewable energy, up from 41% in 2020.96
Electricity providers have sought to procure more power from
low-carbon sources. As of early 2022, more than two-thirds of
electricity customers in the United States were contracting
with an electric utility that either had a 100% carbon-reduction
target or was owned by a parent company with one.97
US utility
commitments have been driven by investor obligations and
scrutiny as well as, increasingly, by economic reasoning.98
In
Europe, meanwhile, some of the highest-emitting utilities either
lacked dates for coal phase-out and net zero emissions, or had
not aligned them with benchmarks to reach net zero by 2050.99
Some of China’s largest electric utilities have set targets for peak
emissions by 2025 or earlier.100
ELECTRICITY DEMAND AND GENERATION
Between 2009 and 2019, the share of electricity in TFECi
(known as the electrification rate) increased from 19% to nearly
22% globally.101
The electrification rate of buildings rose from
29% to 32%, while the rate in industry grew from 24% to 29%.102
Electrification of transport remains minimal but grew from 1.0%
to 1.2%.103
Some countries, such as Norway, have reached nearly
50% overall electrification.104
Other countries recorded significant
increases in their electricity share during this periodii
– rising 59%
in China and 29% in India – in line with their economic growth.105
Drivers of electrification growth include the roll-out of electric
heat pumpsiii
and electric vehicles to meet heating and transport
needs, as well as improved electricity access in developing and
emerging economies.
Renewables generated 28.3% of global electricity in 2021, up from
20.4% in 2011 and similar to 2020 levels (28.5%).106
Hydropower
still comprised most of this, although generation from wind and
solar power has risen dramatically in recent decades. In 2021,
for the first time, variable renewables (wind and solar) met more
than 10% of global electricity production.107
Shares were much
higher in countries such as Denmark (53%), Uruguay (35%),
Spain (32%), Portugal (32%) and Ireland (31%), among others.108
48

CHALLENGES
Despite the ongoing expansion of renewable power around
the world, significant challenges remain.
They include:

Certain renewable power markets follow a boom-bust
cycle due to short-term, unpredictable policy making, as
evidenced in 2021 by the surge in offshore wind power in
China to meet a feed-in tariff deadline and by the collapse
of Vietnam’s solar PV market after two years of generous
incentives.121

Lengthy permitting processes and other regulatory
obstacles remain large hurdles to the development of
renewables in many markets.122
The EU’s REPowerEU plan
in early 2022 specifically included, among other measures,
the acceleration of permitting processes.123

Transmission bottlenecks and stalled network expansion
in some countries have held back the deployment of
renewables.124

Unstable supply chains (related to a concentration of
technology suppliers in few countries) can delay projects
and raise costs, leading to unpredictable price rises that
put pressure on the economic validity of projects.

Significant quantities of minerals such as copper, cobalt
and nickel are expected to be required to meet the
renewable energy deployment necessary to achieve
global climate goals.125
Procurement of these material
inputs will be needed alongside extensive actions to
minimise the associated negative social and environmental
consequences.

Public opposition, as well as efforts to meet sustainability
criteria and address possible human rights abuses, have
impeded some renewable energy and infrastructure
projects.126

Local capacity and knowledge gaps remain a challenge
during the construction and operation phases in emerging
markets and remote locations.127
GLOBAL
OVERVIEW
01
Global electricity demand rebounded strongly in 2021 from its
pre-COVID levels, growing 6%.109
Much of this surge was met
by increased coal generation, which rose 9% and accounted for
more than half of the increase in electricity demand.110
Generation
from renewables grew more than 5%, although extreme
weather events affected the overall level of renewable electricity
production, underscoring the potential impacts of climate change
on renewables.111
Hydropower was the most affected, as drought
conditions in several hydro-heavy countries reduced generation
15%.112
Windstorms, wildfires and dry seasons also contributed to
generation losses.113
As a result, renewable electricity generation
ended its multi-year streak of meeting the majority of the world’s
electricity demand growth.
In the EU-27, wind power, hydropower, solar power and
bioenergy remained the main sources of all electricity, growing
from 22% of generation in 2011 to 37% in 2021.114
However, this
was down from a high of 38% in 2020, a period of low electricity
demand.115
In the United Kingdom, renewables represented
39% of generation, down slightly from the all-time high of 43%
reached in 2020.116
In contrast, renewables generated a record share of net
electricity in the United States in 2021, bolstered by a 29% surge
in utility-scale solar generation.117
Natural gas was the only fuel
in the country with reduced generation in 2021 (down 3.1%), as
coal use grew for the first time since 2014 (up 14%).118
In China,
electricity from hydropower, solar energy and wind energy
provided around 27% of generation (roughly the same share as
in 2020), despite a 10% surge in total electricity production.119
Overall, electricity production from wind and solar power in
China increased 35% from 2020 levels.120
In 2021, more than half of
the 6% increase in global
electricity demand was
supplied by
coal power.
49

2020 2021
INVESTMENT
New investment (annual) in renewable power and fuels1
billion USD 342.7 365.9
POWER
Renewable power capacity (including hydropower) GW 2,840 3,146
Renewable power capacity (not including hydropower) GW 1,672 1,945
Hydropower capacity2
GW 1,168 1,195
Solar PV capacity3
GW 767 942
Wind power capacity4
GW 745 845
Bio-power capacity GW 133 143
Geothermal power capacity GW 14.2 14.5
Concentrating solar thermal power (CSP) capacity GW 6.2 6.0
Ocean power capacity GW 0.5 0.5
HEAT
Modern bio-heat demand (estimated)5
EJ 14.2 14.0
Solar hot water demand (estimated)6
EJ 1.5 1.5
Geothermal direct-use heat demand (estimated)7
PJ 462 508
TRANSPORT
Ethanol production (annual) EJ 2.2 2.2
FAME biodiesel production (annual) EJ 1.4 1.5
HVO biodiesel production (annual) EJ 0.2 0.3
POLICIES8
Countries with renewable energy targets # 165 166
Countries with renewable energy policies # 161 164
Countries with 100% renewable heating and cooling targets # 0 0
Countries with 100% renewable transport targets # 0 1
Countries with 100% renewable electricity targets # 25 36
Countries with heat regulatory policies # 22 26
Countries with biofuel mandates9
# 65 65
Countries with feed-in policies (existing) # 83 92
Countries with feed-in policies (cumulative)10
# 136 144
Countries with tendering (held in 2021) # 33 29
Countries with tendering (cumulative)10
# 111 131
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 Wind power additions in 2021 reported as 102 GW are gross and thus maybe not be equivalent to the difference between total installed capacity in 2021 and 2020.
5 Includes bio-heat supplied by district energy networks and excludes the traditional use of biomass. See Reference Table R1 and related endnote for more information.
6 Includes glazed (flat-plate and vacuum tube) and unglazed collectors only. The number for 2021 is a preliminary estimate.
7 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.
8 A country is counted a single time if it has at least one national or state/provincial target or policy.
9 Biofuel policies include policies listed in Reference Table R10 in the GSR 2022 Data Pack.
10 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 R12 and R13 in the GSR 2022 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.
Source: see endnote 1 for this chapter and REN21 GSR 2022 Data Pack, available at www.ren21.net/gsr2022-data-pack.
TABLE 1.
Renewable Energy Indicators 2020 and 2021
50

GLOBAL
OVERVIEW
01
1 2 3 4 5
Solar PV capacity China United States India Japan Brazil
Wind power capacity China United States Brazil Vietnam United Kingdom
Hydropower capacity China Canada India Nepal Lao PDR
Geothermal power capacity China Turkey Iceland Japan New Zealand

Concentrating solar thermal
power (CSP) capacity Chile – – – –
Solar water heating capacity China India Turkey Brazil United States
Air-source heat pump sales China Japan United States France Italy
Ethanol production United States Brazil China Canada India
Biodiesel production Indonesia Brazil United States Germany France
1 2 3 4 5
POWER
Renewable power capacity
(including hydropower)
China United States Brazil India Germany
Renewable power capacity
(not including hydropower)
China United States Germany India Japan
Renewable power capacity per
capita (not including hydropower)1 Iceland Denmark Germany Sweden Australia
Bio-power capacity China Brazil United States India Germany
Geothermal power capacity United States Indonesia Philippines Turkey New Zealand
Hydropower capacity2
China Brazil Canada United States Russian Federation
Solar PV capacity China United States Japan India Germany

Concentrating solar thermal
power (CSP) capacity Spain United States China Morocco South Africa
Wind power capacity China United States Germany India Spain
HEAT

Solar water heating collector
capacity3 China United States Turkey Germany Brazil
Geothermal heat output4
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
2020 population data from the World Bank.
2
Ranking of countries in terms of demand for wood pellets for heating.
3
Solar water heating collector ranking for total capacity is for year-end 2021 and is based on capacity of water (glazed and unglazed) collectors only.
Data from International Energy Agency Solar Heating and Cooling Programme.
4
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).
Source: see endnote 78 for this chapter.
Net Capacity Additions / Sales / Production in 2021
Technologies ordered based on total capacity additions during 2021.
Total Power Capacity or Demand / Output as of End-2021
Countries in bold indicate change from 2020.
TABLE 2.
Top Five Countries 2021
51

Energy demand for buildings accounts for
one-third of total final energy consumption
Breakdown of
energy demand
Share of Renewable Energy in Buildings,
2009 and 2019
Non-buildings
energy demand
Buildings
Electrical
energy
67% 33%
RENEWABLES IN BUILDINGS
Electricity
supplies
11.7%
of heating in
buildings
67countries
have mandatory or
voluntary building
energy codes at
the national level
51% of the
climate mitigation
finance allocated
to buildings is
for solar thermal
water heaters
Bioenergy
grew less than
1%annually
between 2010
and 2020
2019
2009
10.7%
Share of renewables in buildings
14.7%
Share of renewables in buildings
0.7% 1.8%
89.3%
6% 9%
4% 3.9%
Non-renewable
energy
85.3%
Non-renewable
energy
Renewable
electricity
Solar and
geothermal
heat
Modern
bio-heat
23%
Thermal
energy
77%
Renewable
electricity for
heat generation in
buildings has grown
5.3%
per year in a decade.
4% annual
growth in cooling
demand, the
fastest of any
energy end-use
in buildings
FIGURE 8.
52

i When considering the buildings construction industry, the share of global greenhouse gas emissions rises to 37% in 2020.
GLOBAL
OVERVIEW
01
BUILDINGS
Around a third of the world’s final energy is used directly in
buildings.128
As of 2019, an estimated 14.7% of building energy use
was renewable, up from 10.7% in 2009.129
(p See Figure 8.) Most
of this renewable energy demand is met by modern bioenergy.
Renewables provide a slowly rising share of the energy use
in buildings, with this growth driven mainly by renewable
electricity.130
In 2020, building operationsi
accounted for 27% of global
greenhouse gas emissions.131
Absolute emissions from
energy use in buildings rose steadily up to 2019, due mainly to
growth in indirect emissions from electricity generation followed
by emissions from on-site heat production.132
Energy use in
buildings also has negative air quality impacts, related both to the
traditional use of biomass in developing countries and to natural
gas combustion for heating and cooking, which can lead to heart
disease, respiratory diseases and cancer.133
Energy use in buildings rose slowly but steadily between
2009 and 2019, at an average annual rate of 1%.134
In 2020 and
early 2021, the effects of the COVID-19 pandemic led to a slight
and temporary decline in this demand, as use patterns shifted
from public and commercial buildings to less energyintensive
residential operations.135
Initial estimates indicate that, as
economic activity resumed in 2021, building energy use
rebounded to its previous high.136
The steady growth in building energy use is driven by two main
factors: the increasing floor area, particularly in residential units,
and the growing building stock, especially with rising wealth
and economic opportunities in developing and emerging
economies.137
Both the size and stock of the world’s buildings
increased in 2020, leading to an increase in the total energy
demand of buildings.138
Of the two main energy applications
in buildings – thermal and electrical – increasing the uptake of
renewables for thermal end-uses tends to be more challenging
and is the focus of this section.139
(p See Box 2.)
BOX 2. Thermal versus Electrical Uses: Data Challenges for Renewables in Buildings
Two main energy end-uses exist in buildings: thermal and
electrical. Thermal end-uses refer to space heating and
cooling, water heating and cooking (including the electricity
used to providing heating and cooling). Electrical end-uses
cover major appliances (refrigerators, washing machines,
information technology equipment, etc.), lighting and other
minor electricity demands. Globally, around 77% of building
energy use is thermal and 23% is electrical.
Data on the thermal energy demand and fuel mix in buildings
are challenging to collect, in terms of both fuel sources
and end-uses. The first statistical step is collecting data
on fuel sources. National governments and international
organisations typically prepare statistics on the total direct
fuel consumption in buildings, including electricity. These
data are commonly grouped into different types of fossil
fuels, “renewables” (which often include only biomass) and
electricity. The data cover all final energy use, including both
thermal and electrical.
The contribution from district energy systems is sometimes
considered (for example, in Denmark and Germany);
however, most often this refers to the quantity of heat sold
from heat plant operators, not the quantity used in building
operations. Other sources that typically are overlooked
include the ambient renewable energy harnessed by heat
pumps, as well as solar heat and geothermal heat. In
addition, data on the contribution of renewables to these
secondary energy sources, notably to electricity and district
energy, tend to be omitted and must be found elsewhere,
which leaves a large gap in calculating the total renewable
heating use in buildings.
One example to the contrary is France, where the national
statistics service provides comprehensive data on the fuels
used, including data on district energy, on the heat delivered
by electric heat pumps (ambient and renewable energy), and
on the amount of electricity used to drive the heat pumps.
The EU also has released a methodology for estimating the
amount of ambient energy used by such devices.
The second statistical step is providing timely data on the
energy demand for space heating, water heating, cooking
and space cooling. In most cases, these data are not
provided alongside the data covering the fuels used. Data
on end-uses can be challenging for agencies to collect,
often based on infrequent household and commercial
building surveys to provide national-leveli estimates. As
such, statistics can be unclear whether electricity use in
buildings is for electrical or thermal end-uses. In the best
cases, separate datasets on enduses are available that can
be merged into full datasets covering the fuels used. Several
studies on the heating and cooling sector in Europe and
North America have recommended improving the data
collection on heating.
i Local governments and organisations also often collect this data for
their regions, which could be harnessed by national agencies.
53

i Latest data available for comprehensive energy end-use statistics.
ii In recent years, there have been growing efforts to reduce the embodied carbon in the buildings sector. Embodied carbon is a significant contributor
to total energy demand and the emissions of buildings, and opportunities for renewables exist in these processes. However, this section focuses on the
operation of buildings.
iii Data for cooling are more challenging to collect and are virtually exclusively provided by electricity.
RENEWABLE HEATING AND COOLING DEMAND
In 2019i
, the share of modern renewables used to supply heating
and cooling needs to buildings was an estimated 10.7%, up from
7.9% in 2009; this is lower than the share of modern renewables
in overall building energy use.140
These data include both direct
renewable heat (from biomass, solar and geothermal) and
indirect renewable heating and cooling (supplied by renewable
electricity and district heating and cooling networks).
Although heating demand represents most of the thermal energy
use in buildings, cooling demand is the fastest growing energy
end-use in buildings, rising around 4% per year.141
Because
most cooling is supplied by electric devices, the contribution
of renewables to meeting this demand depends largely on the
prevailing electricity fuel mix.142
Large regional variations exist,
with sales of cooling devices growing fastest in developing and
emerging countries, due mainly to rising wealth and energy
access in these countries.143
In both heating and cooling, a key factor towards increasing the
penetration of renewables in buildings is mitigating the growth
in total energy demand. Global policy efforts to strengthen
energy efficiency have helped to slow increased energy
demand in buildings.144
Measures include the adoption of
appliance efficiency standards and building energy codes as
well as supporting the uptake of efficient heating and cooling
technologies.145
Such efforts have led to a slight decrease in the
energy intensity of buildings. Nevertheless, energy demand in
buildings has continued to increase – including the energy used
to operate buildings as well as to construct themii
.146
Direct use of modern renewables supplies two-thirds of
renewable heating, with the rest coming from indirect sources
such as electricity and district heating.147
Bioenergy accounts
for most of the direct heat, although its use grew less than 1%
annually on average between 2009 and 2019.148
Direct use of solar
and geothermal heat supply lower amounts overall, but demand
for these sources rose 10% and 15% annually, respectively, during
this period.149
In 2019, solar supplied 1.4% of global heating needs
in buildings, and geothermal supplied 0.9%.150
Meanwhile, the
use of renewable electricity to generate heat in buildings has
grown 5.3% per year, with its share of building heating rising from
2.0% in 2009 to 3.3% in 2019.151
A significant share of global heating needs in buildings continues
to be met though the traditional use of biomass in developing
and emerging economies. However, this share fell from 30% in
2009 to an estimated 26% in 2020.152
REGIONAL TRENDS
Asia had the highest energy demand in buildings in 2019 (49 EJ),
with around 33% of this from electricity and the rest from
heating.153
The next-highest regions were the Americas (29 EJ)
and Europe (27 EJ), where electrification shares reached 28%
and 48%, respectively.154
Africa used only 15 EJ of energy in its
buildings and had the lowest share of electricity use in buildings
(8.4%).155
At 1.3 EJ, this was only slightly more than the electricity
used in all of the buildings across Canada.156
National-level data show varying success in providing renewable
heatiii
to buildings. Some countries – such as Denmark, where
the renewable heat share in buildings is around 60% – have
successfully installed large amounts of district heating and
gradually converted networks to renewables.157
Chile has relied
largely on biomass (mainly wood) to help it reach 42% renewable
heat in buildings in 2019.158
Some European countries, such as France, Italy, and Germany,
still depend heavily on natural gas but have seen rapid growth
in heat pump installations. This has contributed to rising shares
of renewable heat in buildings, reaching 24.1% in France and
19.5% in Germany in 2019.159
This compares to shares of only
around 10% in gas-heavy countries such as the United States
and the United Kingdom.160
Among the Group of Twenty (G20)
countries, the highest shares of renewable heat in buildings in
2019, above 19%, were in France, Canada, Italy and Germany.161
(p See Figure 9.) China’s share was 15% (reflecting a surge in
solar and geothermal heat), while both Turkey (geothermal) and
Brazil (biomass) had shares of more than 10%.162
MARKET TRENDS
Markets for renewable heating and cooling technologies have been
on the upswing. In 2020, for the first time, fossil fuel systems (e.g.,
gas boilers) comprised less than 50% of global sales of heating
appliances, whereas sales of renewable heating systems (including
electric heat pumps) reached 25%, up from 16% in 2010.163
Bioheat is both supplied by stand-alone systems and delivered
through district heating networks. Bolstered by a strong
policy framework, consumption of bioheat rose 10% in the EU
between 2015 and 2020, reaching nearly 20% of the region’s
heat demand.164
In the United States, bioheat consumption fell
11% during the same period, competing with low fuel prices and
lacking sufficient policy support.165
Rising electrification of energy use in buildings (p see Power
section of this chapter) has boosted markets for renewable heat
technologies, notably electric heat pumps. Sales of these devices,
both airair and air-water, have risen around the world, especially
in China, the EU, the United Kingdom and the United States.
Although the global market for solar thermal collectors
declined for seven years running, it expanded in 2021, even
surpassing sales from the pre-pandemic year of 2019.166
Stand-
alone solar heat technologies have been used most commonly
for water heating, but (hybrid) systems that provide space heating
have grown, notably in China and Poland.167
Solar heat also
provides space heating via district heating, and this application
also expanded in 2021, notably in France, Austria and possibly
54

i Alongside the launch of the Heat and Buildings Strategy, the United Kingdom announced a consultation on a Market-based Mechanism for Low-Carbon Heat
that would obligate manufacturers providing fossil fuel heating appliances to sell a rising volume of heat pumps. If implemented, this policy would be the first
of its kind. See endnote 174 for this chapter.
GLOBAL
OVERVIEW
01
China.168
Space heating accounts for around 39% of geothermal
direct use; overall, the installed geothermal capacity for heating
has grown an estimated 7-8% annually in recent years.169
District heating networks meet a growing share of heat
demand in buildings, and their renewable share is increasing.
In 2019, district systems accounted for 6.8% of building heat
demand (up from 6.6% in 2009), with a renewable share of 5.7%
(up from 3.9% in 2009).170
During 2021 and early 2022, district
heat projects were brought online in Austria, Serbia, Denmark,
Scotland, Bosnia and Herzegovina and the United Kingdom.171
However, existing systems often have ageing infrastructure, and
many European networks require upgrading to reach efficiency
and renewable energy targets.172
POLICY DEVELOPMENTS
The slow growth in renewable energy use in buildings and the
large share of emissions in the buildings sector has attracted
government attention to renewable heating and cooling. During
2021, government policy played a significant role in growing these
markets, focused on three main areas: pricing policies (e.g.,
carbon pricing, emissions trading, taxation), financial support
policies (e.g., subsidies and rebates) and regulatory policies
(e.g., targets, mandates, building codes and bans).173
The new UK Heat and Buildings Strategyi
, launched in October
2021, offers grants for homeowners to install renewable heat
technologies and aims to restrict the sale of fossil fuel boilers
after 2035.174
Ireland set aside EUR 8 billion (USD 9.1 billion)
for a home upgrade policy that includes grants for renewable
heat systems.175
The United States doubled its funding for
energy assistance to low-income households and provided
USD 3.5 billion to retrofit homes.176
In early 2022, France
announced an increase in its financing scheme to swap out
fossil fuel heating systems for renewable ones.177
In Germany, a national emission trading system entered
into force that applies to heating fuels.178
The country also
mandated that every new heating system in buildings use
at least 65% renewables.179
China’s updated building policy,
released in October 2021, targets the use of solar and
geothermal energy in buildings by 2025.180
Chile launched
a National Heat and Cold Strategy that aims to replace
fossil fuel combustion and unsustainable biomass use with
electrification.181
In Canada, the new Greener Home Grant
provides grants for home renovations, installing solar PV and
substituting heating systems.182
Japan rolled out new efficiency
standards for electric water heaters following its successful
Top Runner programme.183
FIGURE 9.
Share of Renewable Heating in Buildings, G20 Countries, 2019
Source: Based on IEA data.
Share of heating in buildings (in %)
100
80
60
40
20
0
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renewables
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a
F
r
a
n
c
e
13% 10.7%
55

Although these policy developments indicate rising attention
to renewable energy use in buildings, they often exist alongside
incentives for fossil fuel appliances, potentially undermining their
effectiveness.184
(p See Snapshot: Italy.)
Some governments have prohibited the use of fossil fuels
in buildings (usually new buildings) altogether. In addition
to national-level bans in 2021 (such as in Slovenia), these
measures have become increasingly common at the sub-
national level.185
By early 2022, 54 cities and counties in
California (US) had committed to phase-outs of natural gas
in buildings, while New York state (US) and Quebec and
Vancouver (Canada) introduced similar policies in 2021.186
In some cases, particularly In the United States and the
United Kingdom, these efforts have met heavy resistance
from incumbent energy industry players. The natural gas
industry has organised and lobbied extensively against growing
electrification, while new US policies at the state level restrict
the ability of local governments to prohibit natural gas use.187
New building energy
codes that promote
electrification, as well as
high-level policy plans to
address heat in buildings,
were brought into force
in 2021. US states and
cities have strengthened
building energy codes to
promote electrification,
while the European
Commission put forth a
revised Energy Performance in Buildings Directive that, among
other measures, proposes that all new public buildings (starting
in 2027) and all new buildings (starting in 2030) must be zero
emission.188
SNAPSHOT. ITALY
Competing Incentives for Renewable Heating and Cooling
Even when policies are in place to encourage the use of renewable heating and cooling
in buildings, they often compete with similar incentives that simultaneously support
fossil fuel use. Policy approaches can be contradictory or aim to tackle challenges in an
isolated rather than integrated manner. For example, a government may encourage the
replacement of old, inefficient and potentially harmful appliances with newer ones, but
may do so by introducing a subsidy that also finances fossil fuel technologies.
In Italy, the 2021 Superbonus 110% scheme provided tax reductions for up to 110% of the
cost to replace an existing heating system with an efficient renewable-based system in
residential or commercial buildings. However, Italy also provided an equal incentive for
fossil fuel boiler replacement. If the new condensing boiler is more efficient than the model
it replaces (up to a certain point), the subsidy applies as well. Many European countries
offer subsidies for fossil fuel-fired appliances, including Belgium, France, Germany, Greece,
Poland and the United Kingdom.
These policies can be well intentioned, as low-income households tend to suffer the most
from ageing appliances and require support to cover the high upfront costs of replacing
them. These appliance owners also require the most assistance when fuel prices become
unstable. Governments can end up paying both for the subsidies to install a more
expensive, yet more efficient fossil fuel appliance, while also paying to support consumers
when they are faced with higher prices.
Some countries have begun phasing out existing financial incentives for fossil fuel
systems. In early 2022, France announced that it will end subsidies for new gas boilers
and increase financial support for renewable heating.
Government
policy continues
to play an
crucial role
in renewable heating and
cooling.
56

CHALLENGES
Significant challenges have slowed the uptake of renewable
energy in buildings, especially for providing heating and
cooling services. They include:

The higher upfront costs of renewable heating and
cooling technologies pose a barrier to adoption. As of
the end of 2021, natural gas boilers were more affordable
than renewable heating systems in Canada, Germany,
and the United Kingdom, among others, without direct
policy interventions.189
Although upfront costs have
declinedi
, those countries that have successfully deployed
renewable heating systems typically have long-standing
support policies; in Sweden, a carbon tax and a mature
manufacturing industry have improved the economics
of renewable heating technologies versus fossil fuel
counterparts.190

Government fiscal policy can make the operational costs of
renewable heating more expensive, especially for electric
heating (with renewables). Some countries apply levies or
taxation regimes that can disadvantage renewable energy
technologies by, for example, heavily taxing electricity use
while lightly taxing natural gas.191
In EU Member States,
levies and taxes on electricity can be between 10-15 times
higher per unit of energy than those on natural gas.192
In
2020, the Netherlandsii
was the only European country to
apply higher surcharges and taxes on natural gas use than
electricity.193

Fossil fuel consumption received USD 5.9 trillion in
subsidies in 2020, which distorts the costcompetitiveness
of renewable heating options.194
(p See Introduction in this
chapter.)

In countries with large existing building stocks, renovation
and heating system replacement rates are low.195

Consumer awareness of renewable heat options,
including new lower-cost business models, remains low.196
(p See Box 3.)

Despite large job creation potential, the skilled workforce
in renewable heat and energy efficiency installations
remains understaffed.197
(p See Sidebar 2.)
i Solar thermal is already cost-competitive in several countries, including Mexico, due in part due to the strong solar resource. In Denmark, the world
leader for operational district heat capacity, the levelised cost of heat for solar district heating systems fell 32% from 2010 to 2019 due to an increasingly
competitive supply chain and developer experience that helped drive down costs. Projects in Austria and Germany also showed significant declines in
installed cost. Recent price trends in natural gas point to the improving economics of renewable heat solutions, notably via electric heat pumps. See
endnote 190 for this chapter.
ii The Netherlands will further increase taxation on natural gas in a stepped approach until 2026 and decrease taxation on electricity to proceed with its gas
phase-out plans. Since January 2021, electricity used for space heating in Denmark has been subject to the minimum allowable taxation rate.
GLOBAL
OVERVIEW
01
BOX 3.
Service-based Business Models:
Lowering the Upfront Cost of
Renewable Heating
New business models are emerging that help reduce the
upfront cost burden of a renewable heating system. In
heat-as-a-service (HaaS) models, energy suppliers provide
a “heating service” rather than a fuel. HaaS contracts can
range from appliance leasing to guaranteeing a constant
temperature outcome within a building. Customers
typically pay a monthly fee for the service, removing
the significant upfront cost barrier that some renewable
heating technologies can impose. The most commonly
used technology in HaaS offerings is electric heating
devices, but direct renewable heat technologies such as
solar and geothermal heat also can apply.
Although heat supply contracts accounted for less than
1% of heating systems sold in Europe in 2020, such
arrangements have seen increasing uptake across
several European countries. HaaS contracts were first
tested in 2015 in Denmark and Germany, and since then
energy companies in Estonia, France, the Netherlands,
Switzerland and the United Kingdom have begun offering
the contracts in different forms. In Germany, Viessmann
allows customers to “rent heat” by charging a monthly
fee for the equipment, maintenance and units of heat
delivered. Going one step further, as of 2021 the Dutch
company Eneco guarantees a promised temperature of
space heating and sanitary hot water for a monthly fee.
Challenges to the HaaS business model include the
significant energy price risk assumed by the service
provider, as well as regulations limiting third-party
access to subsidies that are available for renewable
solutions. Countries have begun putting in place
policies to address these barriers, such as subsidies
from the Danish government provided for heat pumps
installed on a contract basis.
57

2
4
6
12
14
10
8
7.3
8.5
9.5
10.0 10.1
10.5
11.1
11.5
12.0
Others
Solar heating/
cooling
Wind energy
Hydropower
Bioenergy
Solar PV
12 million
people employed
in renewable
energies in
2020
2016
2015
2014
2013
2012 2017 2018 2019 2020
0
Million jobs
SIDEBAR 2. Jobs in Renewable Energy
The renewable energy sector employed around 12 million
people worldwide in 2020, both directly and indirectly. This
was up from 11.5 million in 2019, indicating that renewables
generally withstood the effects of the COVID-19 pandemic,
although impacts varied among countries, technologies and
segments of the value chain.
Several factors shape how much employment is generated in
renewables, and where. Declining costs translate into growing
competitiveness and more installations, and thus jobs. Policy
guidance and support remain indispensable for establishing
decisive renewable energy roadmaps to achieve the goals
of limiting global temperature rise to 1.5 degrees Celsius (°C)
and bringing CO2 emissions to net zero by 2050. The physical
location of the jobs depends on national markets, technological
leadership, industrial policy, domestic content requirements,
skills training efforts, and the resulting depth and strength of
supply chains in countries.
Solar PV was the largest employer among all renewable energy
industries in 2020, with around 4 million jobs, followed by
biofuels, hydropower, wind power, and solar heating and cooling.
(p See Figure 10.) China had an estimated 2.3 million jobs in
solar PV and continued to lead globally in this field, well ahead
of the United States, Japan and India. Despite a rise in new
installations, US employment in all solar technologies dropped
slightly in 2020, to around 231,500 workers, in part reflecting
growing labour productivity. The share of women in US solar
employment increased from 26% to 30%. Vietnam has risen
rapidly as a PV installation market and become a notable export
manufacturer, with an estimated sola PV workforce of 126,300.
With global biofuels production falling in 2020 due to the effects
of the pandemic, the International Renewable Energy Agency
(IRENA) estimates that worldwide biofuels employment
declined in 2020, to 2.4 million. Brazil had the largest number
of jobs, some 871,000. Indonesia and other South-East Asian
countries also have large biofuels workforces, given their
labour-intensive feedstock operations. Indonesia’s biodiesel
employment remained virtually unchanged in 2020 at around
475,000. The United States and the EU are large biofuel
producers but have more-mechanised operations that require
fewer people.
FIGURE 10.
Global Renewable Energy Employment, by Technology, 2012-2020
Source: Based on IRENA. See endnote 197 for this Chapter.
58

GLOBAL
OVERVIEW
01
Global employment in wind energy grew slightly to 1.25 million
jobs in 2020, from 1.17 million in 2019. IRENA’s gender survey
indicated that women hold only around a fifth of these jobs.
Most wind energy employment is concentrated in relatively
few countries, with China alone accounting for 44% of the
total. Europe continued to be a global wind manufacturing
hub and led in offshore technology, accounting for around
333,200 jobs or 27% of total wind employment (of which EU
members accounted for 21%). In Germany, employment fell to
90,000 jobs due to a precipitous decline in new installations.
The Americas accounted for 17% of global wind energy
jobs, most of them (117,000) in the United States where new
installations expanded rapidly.
IRENA estimates hydropower employment at around 2.2 million
direct jobs in 2020 (the best data available). China was home
to 37% of these jobs, followed by India (15%) and Brazil (8%),
with other countries weighing less heavily. The other renewable
energy technologies employ far fewer people – less than
1 million each. Because these technologies are less dynamic,
less information on employment is typically available.
COVID-19 slowed activity in the off-grid solar PV sector, as
companies faced tight finances and as households reduced
cash purchases. Worldwide sales of off-grid solar lighting
products fell sharply in the first half of 2020 compared with the
same period in 2019, especially in South Asia and in East Asia
and the Pacific. The second half of 2020 brought only a partial
recovery. However, rough data suggest that off-grid solar
companies were able to retain much of their workforce during
the pandemic, potentially around 342,000 workers in 2020
(191,400 in South Asia and 150,000 in parts of Sub-Saharan
Africa). Women were more negatively affected than men
because they often hold informal jobs that are more vulnerable
to lockdowns and other economic disruptions.
In addition to the data on jobs numbers and job creation
dynamics, information on job quality is equally important – and
is linked to skills training, workforce development, inclusivity,
and a range of issues connected to just transition needs and
the decent jobs agenda. A just transition requires that benefits
be shared widely and equitably – and that the burdens of
adjustment be minimised – during the decades-long process
of transforming economies. Decent jobs find expression in
good wages (and benefits), occupational health and safety,
workplace practices and job security. Whether jobs are decent
also depends on the extent of unionisation and labour rights
and on the presence of collective bargaining and government
enforcement of labour standards (which tend to be limited or
absent in economies with a higher degree of informality).
Only limited information is available on such aspects for the
renewable energy sector, in part because it spans many sectors
of the economy, and national conditions vary widely. In general,
a broad, holistic policy framework is required to address these
dimensions, including industrial policies, labour market policies,
social protection measures, and diversity and inclusion strategies.
Source: Based on IRENA. See endnote 197 for this chapter.
59

Energy demand for industry and agriculture accounts
for 31% of total final energy consumption
Share of Renewable Energy in Industry and
Agriculture, 2009 and 2019
Breakdown of energy demand
Non-industry or
agriculture
energy demand
Industry
29%
69%
RENEWABLES IN INDUSTRY
AND AGRICULTURE
12.5%
Share of renewables
in industry and agriculture
16.1%
Share of renewables
in industry and agriculture
Renewable electricity
for industrial
heating rose
80%
in a decade.
2009 2019
Solar and
geothermal
heat
5.0 % 8.0 %
87.5%
Non-renewable
energy
Modern bioenergy
7.3 % 8.0 %
0.1%
83.9%
Non-renewable
energy
Iron and steel
17%
Chemical and
petrochemical
15%
Others
48%
95%
of hydrogen is
currently
produced by
fossil fuels
The industry
sector represents
28%
of GDP; agriculture
represents around
4.3% of GDP
Agri-voltaic
capacity totals
more than
14GW
Sixcountries
passed
agri-voltaic
have policies
Agriculture
Agriculture
2%
Food and
tobacco
6%
Paper and pulp
5%
Mining
3%
7%
38countries
plus the EU have
roadmaps for
hydrogen
production
H2
H2
FIGURE 11.
60

i These data correspond to the value added as percentage of GDP. The available data from the World Bank under the “Industry” category comprise value added
in mining, manufacturing, construction, electricity, water and gas. The data under the “Agriculture” category comprise forestry, hunting and fishing, crops and
livestock production.
ii Refers to emissions generated from energy use within the farm gate and from fisheries.
GLOBAL
OVERVIEW
01
The industry sector is one of the largest energy users, accounting
for 29% of global TFEC.198
Iron and steel are among the most
energy-intensive sub-sectors, representing 17% of industrial
energy consumption, followed by the chemicals sector (15%).199
The agriculture sector, meanwhile, accounts for 2% of global
TFEC.200
(p See Figure 11.) Globally, the industry and agriculture
sectorsi
together contribute 32% of total GDP on average.201
Electricity use in industry and agriculture represents around
10% of global TFEC.202
Meanwhile, industrial processes and their
associated infrastructure contribute around a quarter of global
In 2020, CO2 emissions from
industrial energy use and production processes totalled around
8.7 gigatonnes (Gt).204
Emissions from agriculture reached an
estimated 9.3 Gt in 2018 (latest data available) and represented
more than 17% of global emissions.205
On-farmii
energy-related
emissions increased 23% between 2000 and 2018, representing
0.9 Gt in 2018 (10% of global emissions in agriculture).206
Nearly
half of these emissions (around 0.5 Gt) came from electricity and
the other half from fossil fuel use (mainly natural gas and diesel
products).207
(p See Box 4.)
The share of electricity used in the industry and agriculture sectors
increased from 24% in 2009 to 29% in 2019.208
The electrification of
industrial processes has led to growing use of renewable electricity
for industrial heating, which rose 80% during the decade.209
The
share of renewables in industry and agriculture increased 3.6
percentage points between 2009 and 2019, to represent 16.1% of
TFEC in these sectors.210
Half of the energy provided by renewables
is used to produce electricity and the rest is used to produce heat,
using mainly bioenergy followed by geothermal and solar thermal.211
MARKET TRENDS
The industry sector comprises diverse energy needs. It includes
industrieswithrequirementsforlowtemperatureprocessheat(suchas
food and beverages, mining, and pulp and paper), where renewables
have the highest potential, as well as industries with high-temperature
requirements for process heat (such as cement, chemicals, iron and
steel), where renewables currently face limitations in meeting
this type of heat requirements ( 400°C). In these hard-to-abate
sectors, the main options for decarbonisation are energy efficiency
linked with electrification of processes, biomass in gasification
processes, as well as renewable hydrogen.212
(p See Sidebar 3.)
BOX 4.
Renewables in the Agriculture Sector
The agriculturei
sector accounts for around 4.3% of global
GDP. Global energy use in agriculture has increased from
7.2 EJ in 1999 to 8.9 EJ in 2019, although the sector’s share
in TFEC has fallen from 2.7% in 1999 to 2.4% in 2019. Energy
is used in all stages of agricultural activity, from food storage,
production, and processing, to transport, fertilisation,
manufacturing and machinery.
Agricultural energy consumption varies by region and
depends on energy access levels, mechanisation of
processes and the use of fertilising inputs. Between 1999
and 2019, agricultural energy demand in Asia increased from
3.5 EJ to 4.5 EJ, driven mostly by mechanical and chemical
improvements to obtain higher yields. In Africa, energy
demand in agriculture doubled (from 0.3 EJ to 0.5 EJ), while
its share in TFEC remained roughly stable at 1.8%. In Europe,
demand fell 7.7%, to reach 1.0 EJ of TFEC; oil and petroleum
products contributed 55% of energy consumed, while
renewables and biofuels contributed 9% and electricity 10%.
Renewables play important roles along the agri-food value
chain. Biomass residues produce biogas used to generate
heat and electricity, making it possible to cook and refrigerate
products. Small hydropower and geothermal are used to power
agri-processing facilities, while geothermal steam is used for
drying and processing, greenhouse production facilities and
aquaculture heating. (p See Snapshot: El Salvador in Market and
Industry chapter.) Solar PV technology is used mainly for agri-
voltaics, agro-processing systems and solar irrigation (where it
has proven its effectiveness and is deployed globally). By mid-
2022, agri-voltaics reached a global installed capacity of more
than 14 GW, helping to increase farmer revenues and reduce
water use by limiting evaporation through shaded agriculture.
i GDP share for 2020 includes agriculture, forestry and fishing.
61

SIDEBAR 3. Renewable Energy and Hydrogen
Interest in renewable hydrogeni
– or hydrogen produced from
electrolysis fuelled by renewable electricity – has surged in recent
years. It is considered a key solution for reducing greenhouse
gas emissions from hardto-decarbonise sectors such as
steel, chemicals and long-haul transport. Hydrogen already is
commonly used in the petrochemical and steelmaking industries,
whether in oil refineries to remove impurities and upgrade heavy
oil fractions, as a feedstock for chemical production (such as
ammonia and methanol) or as a reducing agent in iron making.
Industry demand for pure hydrogenii totalled 87 million tonnes
in 2020. Most of today’s pure hydrogen is produced through
steam methane reforming and coal gasification (particularly
in China), which together account for 95% of production.
Electrolysis produces around 5% of global hydrogen, as a
by-product of chlorine production. However, no significant
hydrogen production occurs from renewably fuelled
electrolysis, and renewable hydrogen has been limited to
demonstration projects. Only around 300 MW of electrolysers
for renewable hydrogen were installed as of the end of 2021,
with total production of around 1 million tonnes per year.
However, this is set to change. Several waves of interest in
hydrogen have occurred in years past, driven mainly by oil price
shocks, concerns about peak oil demand and air pollution, and
research on alternative fuels. The latest wave is focused on
delivering low-carbon solutions and additional benefits that
only renewable hydrogen can provide, and is driven by the
following factors:

Broader use of hydrogen. Previous interest in hydrogen
was focused mainly on expanding its use in fuel cell electric
vehicles. In contrast, the new interest covers many possible
uses of renewable hydrogen across the entire economy, in
particular the hard-to-decarbonise sectors that already use
hydrogen.

Government objectives for net zero energy systems.
Since the hard-to-decarbonise sectors have limited options
for emission abatement, current government objectives can
be met only by introducing renewable hydrogen. Moreover,
electrolysers are flexible machines that also can help balance
high shares of variable renewable energy on the electricity
grid, by providing power reserves.

Lower costs. The major cost driver for renewable hydrogen is
the cost of electricity. The price of electricity procured from solar
PV and onshore wind power has fallen substantially in the last
decade. Meanwhile, many of the components in the hydrogen
value chain have been deployed on a small scale and are ready
for commercialisation, but they require investment to scale up.

Interest of multiple stakeholders. As a result of all the
above points, interest in hydrogen is now widespread in both
public and private institutions.
An estimated 5 TW of electrolysers will be needed by 2050
to produce more than 400 million tonnes of renewable
hydrogen. Yet the renewable hydrogen value chain remains
in its infancy and faces many barriers to scaling. There is no
real experience with electrolysers at the gigawatt-scale or with
the manufacture of “green products” (materials and goods
produced using renewable hydrogen, such as green steel or
fertilisers). Renewable hydrogen infrastructure and markets
do not yet exist, and technical and commercial standards are
lagging. Hydrogen is not yet counted in official energy statistics,
and there are no internationally recognised ways to account
for greenhouse gas emissions linked to hydrogen. Renewable
hydrogen also has to compete with the production of hydrogen
using carbon capture and storage.
Renewable hydrogen is still expensive. The rising cost of
fossil gas in Europe in early 2022 made renewable hydrogen
theoretically cheaper than its fossil counterparts. However, if
no high and stable carbon prices are put in place, renewable
hydrogen and green products will remain financially risky as
the cost of natural gas remains volatile. Moreover, renewable
hydrogen production would require additional renewable
energy capacity to meet the requirements for both the direct
and indirect electrification of end-uses.
62

GLOBAL
OVERVIEW
01
Given the strategic importance of renewable hydrogen
in making a low-carbon future possible, governments
are pursuing various industrial policies to support the
technology. At least 38 countries plus the European Union
have developed or are developing hydrogen strategies,
outlining the drivers, targets and objectives they want to
pursue in the hydrogen economy. (p See Policy chapter.)
In many cases, these strategies inform the policies to be
adopted to support renewable hydrogen.
Some countries have provided support for the scale-up of
electrolyser manufacturing capacity. The German research
ministry allocated EUR 700 million (USD 793) to support
three hydrogen projects: H2mare, TransportHyDE and
H2Giga, which is dedicated to developing gigawatt-scale
serial production of electrolysers. In 2021, Chile’s National
Development Agency (Corfo) launched a USD 50 million
tender to select six electrolyser projects for a total of
45 kilotonnes of renewable hydrogen production annually
by 2025. The projects will receive development funding
once they install the promised electrolyser capacity and
meet the established terms and conditions.
On the demand side, some governments have established
sustainable public procurement schemes prioritising the
purchase of green materials, including those produced
using renewable hydrogen. In the United States, the Buy
Clean California Act imposes a maximum acceptable
global warming potential limit on selected construction
materials. During the UN climate talks in November 2021,
the governments of Canada, Germany, India, and the United
Kingdom, among the world’s largest steel and concrete
buyers, pledged to buy low-carbon construction material
when available. In addition, several countries – including
Germany, Japan and the Netherlands – have signed trade
agreements in recent years to identify opportunities to
trade hydrogen.
Countries with an abundance of low-cost renewable
power could become producers of renewable hydrogen,
with commensurate geo-economic and geopolitical
consequences. Hydrogen is a conversion business, not an
extraction business, and has the potential to be produced
competitively in many places. Hence, the industry is
likely to be more competitive and less centralised than
fossil fuels. As the cost of renewable hydrogen falls, new
and diverse participants will enter the market, making
hydrogen even more competitive.
i Also referred to as green hydrogen. See Glossary for definition.
ii Pure hydrogen rarely exists in its natural form. It usually is combined
with other elements such as oxygen, water and fossil fuels. Pure
hydrogen can be produced by gasification and electrolysis.
The chemical sector
is among the highest
emitting industrial sub-
sectors, due largely to
its significant demands
on feedstocks as raw
material and to the use
of coal (28%) in chemical
production.213
A push
for “green ammonia”
projects in the sector has
occurred in parallel to the
development of renewable hydrogen activities. Green ammonia
can be produced with the combination of hydrogen and nitrogen;
it can be used to produce chemicals and fertilisers, or as an energy
carrier for transport or energy storage.214
Bio-based products also
are used to reduce emissions in the chemical sector, and around
1% of plastics are now bioplastics.215
During 2021 and early 2022, more than 20 countries announced
projects for green ammonia production based on renewable
hydrogen from solar and wind power, for uses including industry,
transport and energy storage.216
Nearly 10 of these countries have
projects involving the production of fertilisers for domestic use
or export.217
In Morocco, Total Eren announced a EUR 9.4 billion
(USD 10.6 billion) investment to produce renewable hydrogen
and green ammonia, and in Norway Aker Horizon, Statkraft and
Yara aim to create Europe’s first large-scale green ammonia and
renewable hydrogen production centre.218
The pulp and paper sector relies on bioenergy and renewable
fuels for around 40% of its total energy use, as on-site biomass
waste and residues have been used to supply heat.219
Several
projects to reduce fossil fuel use in processes also have been
explored, mainly in Europe.220
Private companies are replacing
natural gas with renewable hydrogen to produce tissue paper
and are using co-generation plants able to run on biomethane.221
Energy demand in the steel sector, which alongside the iron
sector ranks among the highest emitting industrial sectors, has
increased in recent years with expanding production. The sector
depends on coal for 75% of its energy, and efforts to improve
the energy footprint have been limited largely to energy efficiency
measures and to innovations in the steelmaking process.222
During 2021, four pilot and demonstration projects successfully
produced green steel using green hydrogen, and others were
announced.223
For the first time, a complete green steel value
chain was implemented, including both the steel production and
its use for vehicle manufacturing.224
(p See Snapshot: Sweden in
page 34 in this chapter.)
Energy demand in the aluminium sector is largely consumed in
the form of electricity. The sector selfgenerates more than half of
the electricity that it consumes and has been improving its energy
intensity in the past decade.225
Coal supplies nearly 60% of the
sector’s electricity use, followed by hydropower (one-quarter).226
Although the share of renewables in the energy mix is limited, it grew
3 percentage points between 2010 (when renewables other than
hydropower were not yet used in the sector) and 2020.227
Initiatives
that rely on solar PV and CSP to produce “green aluminium” have
been explored in Australia and the United Arab Emirates.228
At least
10 governments
(as well as the EU) have
developed specific
industry decarbonisation
roadmaps that include
renewables.
63

i The CBAM targets in its initial phase cement, iron and steel, aluminium, fertilisers, and electricity goods, based on the embedded emissions of their production
and import in the EU. The mechanism aims to limit the delocalisation of carbonintensive production and the import of carbon-intensive goods, by penalising
those goods with the highest emissions and thus promoting emission reduction.
ii The governments of the United Kingdom, India, Germany, the United Arab Emirates and Canada.
iii More than 75% of the energy used in the industrial park is provided by direct electrification and renewable heat through renewable microgrids, renewable
power for aluminium production, solar thermal and electrification for heating, and integrated transport through electric and hybrid vehicles.
The cement sector recorded an annual increase in carbon
intensity of 1.8% between 2015 and 2020.229
Biomass and waste
fuels met around 6% of the industry’s global energy needs in 2019,
while in Europe this share reached around 25%.230
Bioenergy and
biomass-based wastes provided only 3% of the thermal energy
used in the cement industry in 2020.231
As in other end-use sectors, chemical, fertiliser and steel
companies are procuring renewable electricity through PPAs in
order to limit CO2 emissions and the impacts of high energy costs
in their production.232
POLICY DEVELOPMENTS
The industry sector is considered to be a hard-to-decarbonise
sector, with heavy dependency on fossil fuels due in part to its
high temperature requirements and to the use of fossil input
materials for production. Sectoral roadmaps and policies are
essential to drive reductions in CO2 emissions, including through
carbon pricing, energy efficiency and renewable energy policies.
Direct renewable energy policies in industry remained limited in
2021 and were focused mainly on renewable heat applications.
In 2021, the EU adopted a carbon border adjustment mechanism
(CBAM)i
that applies a carbon price to goods imported into the
region, depending on their carbon footprint.233
The initial focus
of the CBAM is on the cement, iron and steel, aluminium and
fertiliser industries. When the mechanism enters into full force
in 2026, it will provide a strong incentive for decarbonisation of
imports from these industry sectors to ensure that the goods
remain cost competitive.234
During the COP26 meetings in 2021, the United Nations Industrial
Development Organization (UNIDO) announced the Industrial
Deep Decarbonization Initiative, under which several countriesii
have pledged to procure low-carbon steel and concrete to meet
between 25% and 40% of domestic material demand.235
Since
2016, at least 10 governments (as well as the EU) have developed
specific industry decarbonisation roadmaps that include the use
of renewable energy and renewable hydrogen, among others.236
Within these roadmaps, the sub-sectors that have received the
most focus, with specific measures and strategies, are steel,
chemicals, iron and cement.237
In 2021, the UK government published an industrial
decarbonisation strategy to align its industrial sector with the
national net zero target by focusing on pulp and paper, iron and
steel, cement, and chemicals, among others.238
Sweden expanded
financing measures in its recovery plan for the industrial sector to
reduce emissions that have a direct and indirect link with industry
processes, including hydrogen production, battery production
for electric vehicles and biorefineries.239
Some countries have
published national plans to limit fertiliser dependency, promoting
local production of chemicals via renewable hydrogen.240
Several broader hydrogen plans also have been announced, but only
a handful focus on renewable hydrogen for industrial applications,
including chemicals and steel.241
Another way to address decarbonisation is by developing
industrial clusters that make it possible to reduce energy costs
and emissions in the industry sector. Several countries and city
governments have taken this approach.242
Since 2013, China has
developed 52 low-carbon industrial clusters.243
Energy use in the
Suzhou Industrial Park is supplied by more than 75% renewablesiii
,
the highest share across China’s national development zones.244
Between 2016 and 2019, energy consumption in the park increased
15%, while energy intensity per unit of GDP fell around 10%.245
In early 2022, four global cluster sites in Australia, Spain and
the United Kingdom joined the Transitioning Industrial Clusters
towards Net Zero initiative, launched by the World Economic
Forum, Accenture and the Electric Power Research Institute.246
This cluster approach aims to achieve energy savings and cost
reduction through heat integration and utility-scale renewables
and enabling technologies, including solar thermal, solar PV,
renewable hydrogen and storage.247
CHALLENGES
Significant challenges remain to increasing the uptake of
renewables in the industry sector. These include:

The cost implications of reducing CO2 emissions in
high-temperature processes remain high, especially
since many heavy industries are based on low-cost coal.
Although the cost of renewable hydrogen has declined,
its cost-competitiveness is dependent on the availability
of renewable resources and site-specific conditions.248
(p See Sidebar 3.)

As in other sectors, fossil fuel subsidies tend to discourage
investment in energy efficiency and renewable energy to
decarbonise the industry sector.249
Materials and products
from the industry sector are traded in a competitive market
with low margins, which limits the possibilities.

Energy demand in some industry sub-sectors – such as
steel and chemicals – would likely increase in emerging
economies as their economies mature and as demand
grows. To limit CO2 emissions, innovative technologies
that are still under development today will be needed. 250

The energy transition could increase the number of
stranded assets across the industry sector. In the
steel sector alone, replacing coal-fired blast furnaces
with electric arc furnaces represents an estimated
USD 70 billion in stranded assets.251
64

Energy demand for transport accounts for
nearly one-third of total final energy consumption
Share of Renewable Energy in Transport,
2009 and 2019
Breakdown of
energy demand
Aviation
Non-transport
energy demand
Transport
32%
12%
68%
RENEWABLES IN TRANSPORT
2.4%
Share of renewables
in transport
3.7%
Share of renewables
in transport
Electric car
sales tripled
between 2019
and 2021.
2009 2019
Biofuels
2.2%
0.2 % 0.4 %
3.3 %
97.6%
Fossil fuels
96.3%
Fossil fuels
Maritime transport
9.4%
Rail
2%
Road
transport
74%
16million
electric cars on
the world‘s roads,
around
1% of
the global fleet
Only
28 countries
have targets for
renewable energy
in transport
40%
growth in electric
bus sales in 2021,
to total 4% of the
global bus stock
31% of
climate mitigation
finance allocated
to low-carbon
transport
11countries
and 20 cities have
targeted bans
on sales of fossil
fuel/ICE vehicles
GLOBAL
OVERVIEW
01
FIGURE 12.
65

i Battery electric vehicles and plug-in hybrid electric vehicles.
ii Walking, cycling and their variants, which are important elements of “Avoid” and “Shift” in the Avoid-Shift-Improve framework because they help to limit overall
transport energy demand. Also called “active transport” or “human-powered travel”
. See endnote 254 for this chapter.
iii Micromobility includes modes such as electric sidewalk/“kick” scooters and dockless bicycles (both electric and traditional), as well as electric moped-style
scooters and ride-hailing and car-sharing services. Many “new mobility service” companies have committed to sustainability measures, including the use of
renewable electricity for charging vehicles as well as for operations. See Box 2 in GSR 2020.
iv Because the year 2020 was impacted heavily by the pandemic, long-term trends can be better seen by looking at the data up to 2019.
TRANSPORT
During 2021, the transport sector continued to experience
impacts related to COVID-19, following a tumultuous 2020.
However, activity increased for all transport modes, particularly
passenger and freight transport, resulting in rising energy
demand as well as greater use of renewables.252
(p See Figure 12.)
Global passenger car sales, particularly for electric vehiclesi
and
sport-utility vehicles (SUVs), continued to grow.253
Non-motorised
transportii
and micromobilityiii
also increased in popularity, and
freight and maritime transport largely rebounded.254
Conversely,
public transport continued to experience lower ridership than
pre-pandemic levels in most markets despite showing some
signs of recovery.255
Air traffic remained significantly lower than
pre-pandemic levels but experienced some rebound compared
to 2020.256
Transport remains the sector with the lowest share of renewable
energy use.257
Despite the growth in electric vehicles in recent
years, the overwhelming renewable energy contribution continues
to be from biofuels.258
As of 2019 (latest data available), the vast
majority (96.3%) of global transport energy needs were met by
fossil fuels (mostly oil and petroleum products, as well as 0.9%
non-renewable electricity), with small shares met by biofuels
(3.3%, mostly blended in various percentages with fossil fuels) and
renewable electricity (0.4%).259
(p See Box 5.)
BOX 5.
Entry Points for Renewable Energy in Transport
Renewables can meet energy needs in the transport sector
through the use of:

biofuels in pure (100%) form or blended with conventional
fuels in internal combustion engine (ICE) vehicles;

biomethane in natural gas vehicles; and
 renewable electricity, which can be:
• used in battery electrici
and plug-in hybrid vehicles,
•
converted to renewable hydrogen through electrolysis
for use in fuel cell or ICE vehicles, or
• used to produce synthetic fuels and electro-fuels.
In addition to the use of biofuels or other renewable-based
fuels for propulsion, maritime transport has the possibility to
directly incorporate wind power (via sails) and solar energy.
i See Glossary for definition.
66

i Because the year 2020 was impacted heavily by the pandemic, long-term trends can be better seen by looking at the data up to 2019.
ii Passenger transport activity increased 74% between 2000 and 2015, while its energy intensity fell 27%. Meanwhile, surface freight (road and rail) activity
increased 40%, but its energy intensity declined only 5% due to vehicle attributes, payloads and a lack of supportive policy frameworks to incentivise
improvements. See endnote 264 for this chapter.
iii 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.
GLOBAL
OVERVIEW
01
Energy use for transport accounted for around one-third (31.9%)
of global TFEC in 2019, with road transport representing the
bulk of the sector’s energy demand (74%), followed by aviation
(12%), maritime transport (9.4%) and rail (2%).260
Between 2009
and 2019i
, the use of renewable energy in transport grew 87%
(from 2.35 EJ to 4.41 EJ); however, its overall share in the sector
increased by only around one percentage point, from 2.4% to
3.7%, due to continued growth in transport energy use.261
Global energy demand in the transport sector increased more
than 24% during the decade.262
This was due mostly to the
growing number and size of vehicles on the world’s roads (and
to increases in the tonne-kilometres and passenger-kilometres
travelled), to a reduction in average passenger-kilometres
travelled per person for buses, and to a lesser extent to rising
air transport.263
Energy intensity improvements have occurred
mainly in passenger transport, almost entirely in developing
and emerging countriesii
.264
Longer-term trends indicate that the
growth in energy demand for transport has far outpaced other
sectors.265
(p See Figure 3.)
MARKET TRENDS
Transport Overview by Fuel
Biofuels productioniii
bounced back in 2021 to surpass pre-
pandemic levels for both ethanol and biodiesel.266
Between
2011 and 2021, production and use of ethanol increased 26%,
while biodiesel nearly doubled.267
Production of hydrogenated
vegetable oil (HVO or HEFA, also called renewable diesel) grew
36% in the same period, despite the effects of the pandemic.268
Some biomethane and compressed biogas continued to be used
in transport, but on a much smaller scale. (p See Bioenergy
section in Market and Industry chapter.)
The use of renewable electricity in the transport sector
reached 0.35% in 2019, as electrification in the sector and the
uptake of electric vehicles continued to increase.269
Electrification
grew across nearly all transport modes through 2021.270
(p See
Sidebar 4.) This can help dramatically reduce CO2 emissions
in the sector, particularly in countries that are reaching high
renewable shares in their electricity mix. Electric vehicle batteries
essentially work as energy storage systems, storing surplus
renewable energy which can be fed back to the grid when
necessary. Transport electrification also offers the potential for
significant final energy savings, as electric vehicles are inherently
more efficient than ICE vehicles.271
However, the overall share of
electricity (let alone renewable electricity) in the transport sector
remains low and has increased relatively little in recent years.272
Some regions saw increased interest in hydrogen and synthetic
fuels as transport fuel. However, the use of or investment in
renewable hydrogen and synthetic fuels for transport remained
minimal, as nearly all hydrogen production globally continues to
be based on fossil fuels.273
Energy use for transport
accounted for
32%
of global energy demand
in 2019.
67

i Electric vehicles refer here to battery electric vehicles and plug-in hybrid electric vehicles in the road transport sector; these include cars, two- and three-
wheelers, light commercial vehicles and heavy-duty vehicles (including trucks and buses).
Electric car stock (millions) 2021 share of global sales
5
10
15
20
2017
2016
2015 2018 2019 2020 2021
7%
7% Rest of World
United States
12%
12%
33%
33% Europe
48%
48% China
0
SIDEBAR 4. Market and Industry Trends for Electric Vehicles
Electrification has increased across nearly all transport modes
in recent years. Much of the growth in electric vehiclesi
can
be attributed to targets and policy support, in addition to the
rising economic competitiveness, technological advancement
and model availability of electric vehicles.
ELECTRIC VEHICLE MARKET
Electric car sales reached 6.6 million in 2021, more than
doubling from 2020 and tripling from 2019. The market share
of electric cars in overall car sales grew from only 2.5% in 2019
to nearly 9% in 2021. Electric cars accounted for all of the net
growth in car sales of any type globally in 2021, with battery
electric vehicles representing around 70% of the growth. By
year’s end, an estimated 16 million electric cars were on the
world’s roads, comprising around 1% of the global car fleet.
(p See Figure 13.)
Most of the growth was in China, where electric car sales nearly
tripled in 2021 to reach 3.4 million, the fastest market growth
worldwide since 2015. Globally, the rapid uptake of electric
cars during the year reflected extended government financial
support in the wake of the COVID-19 pandemic, anticipated
declines in government support in 2022, expanded small car
models, and shrinking price differentials between electric and
ICE vehicles. In China, the median price of an electric car was
only 9% higher than for an ICE vehicle, whereas in the United
States and Europe it was more than 50% higher (although
some European markets, such as the Netherlands, Norway,
and the United Kingdom, showed lower price differentials).
Electric car sales in Europe slowed from 2020 but still jumped
nearly 70% in 2021 to reach 2.3 million. Sales were supported
by new CO2 emission standards and by expanded financial
support in most major markets. For the first time ever, electric
car sales surpassed diesel car sales in the region. The highest
market shares for electric cars were in Norway (86% of all cars
sold), Iceland (72%), Sweden (43%), and the Netherlands (30%),
while Germany (25%) remained Europe’s largest market by the
number of electric car sales, with nearly 700,000 vehicles sold.
Sales in the United States more than doubled to surpass
600,000 in 2021, exceeding the country’s total electric car sales
in 2019 and 2020 combined. The share of electric cars in the
overall US market doubled during the year to reach 4.5%. This
followed two consecutive years of sales declining 10%.
FIGURE 13.
Electric Car Global Stock, Top Countries and Rest of World, 2015-2021
68

GLOBAL
OVERVIEW
01
China, Europe and the United States together account for
two-thirds of the global car market (all types) and for 95%
of electric car sales. Outside these regions, electric car sales
were less than 2% of most markets. In developing countries,
low sales reflected high costs compared to ICE vehicles and a
lack of charging infrastructure. However, sales surged in 2021
in developing Asia, Central Europe, West Asia, the Middle East,
and Latin America and the Caribbean.
Investment in electric cars jumped in 2021 after steady
increases during 2016-2020. Consumer electric car spending
more than doubled to nearly USD 250 billion, while government
spending doubled to nearly USD 30 billion. In China, consumer
electric car spending nearly tripled to USD 90 billion.
Charging infrastructure also expanded, with the number
of publicly available charge points up nearly 40% in 2021.
Installations of slow chargers grew 33% – down from average
annual growth of 60% during 2015-2020 – while installations of
fast chargers increased 45%.
The market for electric two- and three-wheelers (such as
motorcycles and auto-rickshaws) continued to grow, with
China adding 9.5 million new registrations in 2021 to comprise
97% of the global market. Vietnam and India experienced high
sales of 230,000 and 89,000, respectively. As of 2021, 25%
of all electric two- and threewheelers in Asia were electric.
While electric two- and three-wheeler models cost less than
ICE models in many regions, they remain more expensive in
Europe and the United States.
Sales of electric light commercial vehicles (LCVs, such
as pick-up trucks and vans) grew more than 50% in 2021, to
reach 2% of the overall LCV market. Compared to cars, the
economic case for electrifying LCVs is stronger because LCVs
tend to see greater use and to operate on more predictable
routes. However, LCV electrification has been slower due to
weaker fuel economy policies and fewer zero- or low-emission
mandates in most markets. China led with 86,000 electric
LCVs sold in 2021, followed by Europe with 60,000 sold.
New registrations of electric heavy-duty vehicles (HDVs,
including buses and heavy-duty trucks) also increased. While
the overall bus market contracted 7%, sales of electric buses
grew more than 40%, bringing e-buses to 4% of the global
bus stock in 2021. Sales of electric medium- and heavy-duty
trucks more than doubled, bringing electric heavy-duty trucks
to 0.1% of the total global stock. China remained home to most
e-buses and electric HDVs, although sales in the United States
and Europe have grown rapidly since 2019.
ELECTRIC VEHICLE INDUSTRY
By the end of 2021, at least 450 electric car models were
available globally, up more than 15% from 2020 and more than
five times since 2015. Automakers continued to promote larger
vehicles, such as SUV and luxury models, which tend to have
greater profit margins. Overall, SUVs comprised around half
of all electric car models available in major markets, while
medium-sized models comprised 22% and small models just
10%. The number of HDV models also increased. However,
fewer models (of LDVs and HDVs alike) were available in
developing and emerging markets.
After a year of no growth, the driving range of battery electric
vehicles increased 3.5% in 2021 to reach 350 kilometres.
The weighted average range for new battery electric
vehicles grew at a compound annual rate of 9% for 2015-
2021, demonstrating continued industry efforts to improve
the performance of both vehicles and batteries. For plug-in
hybrid electric vehicles, range increased 8.5% to reach 60
kilometres, with compound annual growth of 2.7% during
2015-2021. Globally, the price-per-range for battery models
fell 10% and for plugin hybrid models fell 14%, reflecting
increasing battery range and decreasing average vehicle
prices. Range for HDVs also increased.
Electric vehicle and battery companies have experienced
greater market capitalisation than traditional original
equipment manufacturers (OEMs). Tesla (US) dominated
the automaker market for electric vehicles, accounting
for three-quarters of the total market capitalisation. Tesla
also led in electric car sales globally, followed by VW
Group (Germany), BYD (China), GM (US) and Stellantis
(Netherlands). Regionally, VW Group led in Europe, BYD
led in China, and Tesla led by a large margin in the United
States and several other countries.
Nearly all major automakers announced sales targets for
electric vehicles in 2021. Early in the year, both Honda and the
European division of Ford announced targets for phasing out
ICE vehicles (by 2040 and 2030, respectively). During the UN
climate talks in November, 24 countries and a group of auto
manufacturers (including Ford, Mercedes-Benz and Volvo)
agreed to phase out ICE vehicles by 2040 (notably absent were
BMW, Toyota and Volkswagen). Some automakers, including
Ford, GM, and Toyota, also announced training programmes
to accelerate electric vehicle deployment and ensure a well-
trained transition workforce.
New charging technologies to support vehicle
electrification were developed during the year. StoreDot
(Israel) developed batteries capable of being charged in
five minutes, manufactured by Eve Energy (China). In the
United States, Ford and Purdue University announced a
partnership to create a new cable for charging stations to
deliver increased current and faster charging speed. Tesla’s
Supercharger network also opened to other electric car
types during the year.
Source: IEA and others. See endnote 270 for this chapter.
69

i The transport of goods or people via sea routes, including inland and coastal shipping.
ii At a smaller scale, electric outboard engines increasingly are being used in many markets and can be charged directly with renewable energy; some
governments, such as Sweden, have offered incentives for electric models. See endnote 292 for this chapter.
TRENDS BY TRANSPORT MODE
Road transport accounts for three-quarters of transport energy
use.274
In 2021, global passenger car sales increased more than
4%, slightly stronger than in 2020 in most regions but still not
reaching prepandemic levels.275
In contrast, electric car sales
surged 108% in 2021, with even higher growth in some markets.276
Although 55% of the electric car models for sale on the market
were SUVs, more than 98% of the SUVs on the roads globally were
still ICE vehicles, running mostly on fossil fuels.277
Sales of two and
three-wheelers increased in many markets, while electric versions
increased in popularity, driven by rising consumer concerns about
air pollution and by growing demand for “low-noise” transport.278
A few local governments and companies have begun using
renewable energy in their bus fleets. While many cities have used
biofuels in buses for some time, a growing number are now linking
renewable electricity to e-bus charging (such as charging the buses
with solar power), notably in Europe, the United States and China.279
Road freight consumed around half of all diesel fuel in 2018 (latest
data available) and was responsible for 80% of the global net
increase in diesel use between 2000 and 2018, with the increase
in road freight activity offsetting any efficiency gains.280
However,
an increasing number of companies continued to use renewable
energy options, such as biogas in the United Kingdom.281
As the most highly electrified transport sector, rail transport
accounted for around 2% of the total energy used in transport in
2019.282
Renewables contributed an estimated 11% of global rail-
related energy consumption in 2019.283
Some jurisdictions have
increased the share of renewable energy in rail transport to well
above its share in their power sectors.284
Many cities are running
public urban rail systems on electricity, sometimes directly linked
to renewable electricity and in other cases using biofuels.285
Several deals signed in 2021 supported renewable energy uptake
in the sector, including for renewable electricity in New South
Wales (Australia), biodiesel in Canada, and renewable electricity,
renewable HVO, biogas and hydrogen dual-fuel technology in the
United Kingdom.286
Passenger rail volumes increased compared
to 2020, although trips were below pre-pandemic levels.287
Rail freight rebounded somewhat during 2021, with some regions
reaching pre-pandemic levels as supply chains normalised and
demand increased.288
However, in some regions rail operators
have gone back to using diesel. For example, following a sharp
rise in electricity prices in the United Kingdom, including a 40%
tax on renewable energy, some rail freight operators replaced (at
least temporarily) electric freight services with diesel services as
a more cost-effective option.289
Maritime transporti
largely recovered in 2021 following a nearly 4%
decrease in 2020.290
Maritime activity consumed around 9% of the
global energy used in transport in 2019 – with around 0.1% estimated
to be renewable – and was responsible for around 2.9% of global
Some fleets have moved to 100%
renewable fuels, while others have moved to hybrid systems with
energy storage (although not always operating on renewablesii
).292
In 2021, several companies announced or launched renewable-
based shipping endeavours, including using e-methanol made from
renewables, offering renewable-based shipping and investing in
biomethane production capacity.293
Others expanded renewable
fuel production to meet growing demand in the sector.294
70

i On a smaller scale, some companies planned for small electric planes to take flight by as early as 2024, while others advanced plans for fully electric airlines to
carry 100 passengers, or aimed for hydrogen-fuelled commercial aircraft by 2035. See endnote 299 for this chapter.
ii Up from 315,000 in 2020 and just 200,000 the year before.
GLOBAL
OVERVIEW
01
In the aviation sector, air traffic increased slightly in 2021 –
after having plummeted with the onset of the pandemic – but
remained more than 58% lower than in 2019.295
Meanwhile,
air cargo reached higher levels than pre-pandemic.296
In 2019,
aviation accounted for around 12% of the total energy used in
transport – less than 0.1% of which was renewable – and for
around 2% of global greenhouse gas emissions.297
Several initiatives supported renewable fuels for aviation during
2021. These included the largest sustainable fuel agreement in
aviation history, targets for 100% biofuel planes by 2030, multi-
year partnerships for sustainable aviation fuel and the opening
of the world’s first plant dedicated to producing carbon-neutral
jet fuel.298
The number of airports with regular distribution of
blended alternative fuel nearly tripled, from 14 in 2020 to 44
in 2021, while the number of airports with batch deliveries of
such fuels increased from 16 to 23i
.299
By early 2022, more than
360,000 commercial flights had flown on blends of alternative
fuelsii
.300
However, this remains a negligible share of the tens of
millions of flights performed each year.301
POLICY DEVELOPMENTS
Only 28 countries globally have targets for renewable energy in
transport, typically for multiple objectives including supporting
energy security, reducing CO2 emissions and improving air quality.
(p See Policy chapter.) As of mid-2021, two-thirds of the 2020 targets
for renewables in transport had not been achieved, and around
40% of the countries that had set 2020 targets had not established
new ones after the 2020 targets expired.302
Countries have failed to
meet their targets in large part because they lack supportive policy
frameworks that encourage an energy and transport transition, or
because the frameworks in place are ineffective or not enforced.
The number of countries with support policies for biofuels in
transport plateaued in 2017 at 65 countries globally and has
not increased since.303
Targeted bans on sales of fossil fuel/
ICE vehicles (or targets for 100% electric vehicle sales, typically
light-duty vehicles only) were in place in 26 countries (and 8
states/provinces) by early 2022, doubling from the year before.304
However, many of these countries target relatively low shares
of renewable power, and some lack national renewable power
targets altogether.305
In 2021, only three countries – Germany,
Austria and Japan – had an electric vehicle support policy with a
direct link to support for renewable power, the same as in 2020.306
Fuel economy standards push manufacturers to seek to
improve fuel efficiency and facilitate the adoption of alternative
drivetrains based on low-carbon solutions, including renewable
energy.307
As manufacturers seek to decrease fuel consumption,
this could result in a higher renewable share in final energy
consumption. In 2021, 48% of energy use in transport across
all modes globally was covered by mandatory fuel efficiency
standards, nearly double from a decade earlier.308
71

i These actions also 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. See Figure 60 in GSR 2020.
ii Further, current targets made by the international maritime and aviation bodies (the International Maritime Organization and the International Civil Aviation
Organization, respectively) are not consistent with Paris Agreement goals of limiting global warming to below 2°C but rather are in line with a rise of more than
3°C. See endnote 322 for this chapter.
Fuel economy standards apply to 80% of light-duty road vehicles
worldwide, yet they cover just 51% of the global road freight
market.309
Only five countries – Canada, China, India, Japan and
the United States – apply them to heavy-duty vehicles, and no new
countries have adopted such standards since 2017, although the
EU adopted CO2 emission standards for new heavy-duty vehicles
in 2019.310
In aviation, although carbon emissions per passenger-
kilometre have fallen more than 50% in the past three decades
due to fuel efficiency improvements, emissions have grown more
rapidly than expected as global demand for air travel surges.311
Many countries still lack a holistic strategy for decarbonising
transport that encompasses the Avoid-Shift-Improve frameworki
.
(p See Global Overview in GSR 2020.) Such strategies can
greatly decrease energy demand and associated greenhouse gas
emissions in the sector and thus allow for the renewable share in
transport to increase.312
Despite the improvement in carbon intensity in the transport
sector, continued increases in energy demand (most of which
have been met by fossil fuels) have resulted in a general trend of
rising greenhouse gas emissions.314
Emissions from the sector
increased in 2021 after falling in 2020, although they remained
below 2019 levels.315
The sector as a whole accounts for nearly
a quarter of global energy-related greenhouse gas emissions.316
Nearly three-quarters of all transport emissions are from road
vehicles.317
Emissions from SUVs alone tripled between 2010 and
2020 due to the increasing number and larger sizes relative to
other passenger vehicles.318
Overall, the transport sector is not on track to meet global climate
goals for 2030 and 2050.319
The majority of countries worldwide
have acknowledged the sector’s role in mitigating emissions by
including transport in their NDCs under the Paris Agreement.320
However, the role of renewables is largely not specified, and as
of mid-2021 only 10% of NDCs included measures for renewable-
based transport.321
Based on one estimate, to be on track with net
zero scenarios for 2050, emissions from the sector would need to
decrease at least 20% by 2030ii
.322
Still, a record number of transport-related commitments were
announced during or surrounding COP26 in 2021, supported by
countries in every major world region.323
Commitments covered
nearly all transport modes – from zero-emission vehicles and
charging infrastructure, to decreasing emissions in aviation
and shipping, to supporting cycling as an emission reduction
measure.324
While some commitments directly mentioned
renewable fuels, others supported renewables more indirectly.325
Notably, 38 countries and 44 city, state and regional governments
signed the UK-led “COP26 declaration on accelerating the
transition to 100% zero-emission cars and vans”, promising to
work towards all sales of new cars and vans being zero emission
by 2040 or earlier, or by no later than 2035 in leading markets.326
72

CHALLENGES
While there have been some advances for renewables in the
transport sector, renewable energy is not making as significant a
stride as it has in other sectors. Reasons for this include:

Historical global transport systems and infrastructure favour
motorised transport demand based on fossil fuels, supported
by subsidies and strong lobbying efforts to maintain the
status quo.

Rising transport demand due to population and economic
growth, particularly in developing and emerging countries,
has led to energy demand growing much faster than in
other sectors.

The sector remains characterised by dependency on
individual behaviour and consumptionoriented lifestyles
(particularly in industrialised countries), trends toward larger
vehicles, and reluctancy to change behaviour, all supported
by strong lobbying and marketing efforts.

Sufficient policy support is lacking for reducing the overall
demand for motorised transport, transitioning to more
efficient transport modes (such as public transport), and
improving vehicle technology and fuels – together known as
Avoid-Shift-Improve.

Cost-effective solutions are lacking, particularly for
decarbonised long-haul aviation and shipping.313

The transport sector is characterised by a strong
fragmentation of policies and governance structures, with
many decisions taken at local and regional level. National
policy frameworks are therefore not sufficient to trigger
change at the national level and support local efforts.
GLOBAL
OVERVIEW
01
73

Renewable Energy Programme for the
Agri-Fishery Sector
In 2021, the Philippine Departments of Energy and Agriculture
announced a new Renewable Energy Programme for the Agri-
Fishery Sector. The programme supports the use of renewables
to power agricultural and fishery operations such as drying
and other heat-based applications, to electrify farm production
and processing facilities and machinery, to fuel engines used in
irrigation, and to mechanise farm operations. The programme
also aims to develop new renewable technologies and human
resources specialising in renewables; to develop and enforce
new standards for renewables; and to provide technical support
for suppliers and manufacturers of locally produced renewable
energy equipment and components.
SNAPSHOT. PHILIPPINES
02

i This chapter is intended to be only indicative of the overall landscape of
policy activity and is not a definitive reference. Data from GSR 2021 should
not be used as a comparison, due to updated methodology and data
availability. Generally, listed policies are those that have been enacted by
legislative bodies. Some of the listed policies may not yet be implemented,
or are awaiting detailed implementing regulations. For further information,
see endnote 2 for this chapter.
02
n the past decade, interest in a global transition to an
energy system that relies more heavily on renewables
has increased, in response to wide-ranging goals
related to climate change and decarbonisation, energy security,
job creation, equity and energy access. To achieve these goals,
decision makers at various levels have enacted new renewable
energy policies and strengthened existing ones.1
Policy support
for renewables – whether directly through, for example,
renewable energy mandates and incentives, or indirectly through
measures such as carbon pricing and fossil fuel bans – remains
critical for driving the energy transition, particularly in harder-to-
decarbonise sectors such as heating in buildings, as well as the
transport and industry sectors.
By the end of 2021, nearly all countries worldwide had implemented
at least one regulatory policy in direct support of renewablesi
.2
(p See Figure 14.) Although most of this activity continued to
focus on the power sector, the number of renewable energy
policies in both transport and heating increased for the first time
since 2018 (albeit with weaker policy frameworks).3
In addition to
policy developments at the national level, cities increasingly have
passed policies in support of renewables, although these are not
the focus of this analysis. (p See the Renewables in Cities chapter
for a discussion of policy developments at the city level.)
POLICY
LANDSCAPE
 By the end of 2021, nearly all countries
worldwide had in place a renewable energy
support policy, with most support continuing
to occur in the power sector and fewer
efforts to accelerate renewables in buildings,
transport and industry.
 Commitments to climate change mitigation
accelerated in 2021, as governments,
corporations and others made a flurry of
pledges to reduce greenhouse gas emissions.
By year’s end, at least 135 countries and the
European Union had some form of net zero
targets in place.
 As in previous years, policies supporting
renewables in transport focused mainly on
road transport, with rail, aviation and shipping
receiving far less attention.
 The industrial sector continued to receive
far less policy attention than other end-use
sectors.
KEY FACTS
02
I
75

30
60
90
120
180
150
Number of Countries
2019 2021
2017
2015
2013
2011
156
countries
Power regulatory
incentives/
mandates
Heating and cooling
regulatory
incentives/
mandates
26
countries
70
countries
Transport regulatory
incentives/
mandates
0
The push to decarbonise is an increasingly important driver
of renewable energy support policies.4
In 2021, governments
around the globe announced a flurry of commitments
towards mitigating climate change through reductions in
green
house gas emissions.5
In addition, rising energy prices during
the year and the Russian Federation’s invasion of Ukraine in early
2022 have heightened policy makers’ concerns about energy
security, leading to growing interest in renewables.6
Globally, decision makers
are converging on the key
role of electrification in
decarbonisation efforts
and have enacted policies
to support greater use
of electricity, which is
increasingly generated by
renewables.7
CLIMATE CHANGE POLICY AND
RENEWABLES
Policies aimed at mitigating climate change can indirectly
stimulate the deployment of renewables by mandating a
reduction or elimination of greenhouse gas emissions.8
Most
climate change policies related to energy do not focus explicitly
on renewables; however, these policies play a critical role in
increasing interest in – and uptake of – renewable energy
technologies across all end-use sectors.
The year 2021 was important for climate policy developments.
After the United Nations climate negotiations were postponed
in 2020 due to the COVID-19 pandemic, stakeholders
convened in November 2021 for resumed talks in Glasgow,
Scotland.9
Although countries’ revised Nationally Determined
Contributions (NDCs) – which outline their commitments to
reducing emissions under the Paris Agreement – were due in
2020, they were given additional flexibility to submit their new or
updated NDCs ahead of the Glasgow meetings.10
Note: The 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 Reference Table R3 in the GSR 2022 Data Pack.
FIGURE 14.
Number of Countries with Renewable Energy Regulatory Policies, 2011-2021
Climate change
policiesplay a
critical role in increasing
interest in – and uptake
of – renewable energy
technologies across all
end-use sectors.
76

POLICY
LANDSCAPE
02
In total, 151 countries submitted new or updated NDCs in 2021,
with most of the submissions showing increased ambition
on reducing emissions.11
However, not every NDC contains
a quantified renewable energy target, and those that do focus
mainly on the power sector; only 30 of the submitted NDCs
explicitly mentioned heating or transport, and only 13 NDCs
outlined a commitment to a share of renewables in the total
energy mix.12
Numerous countries, states and provinces implemented
additional climate change policy during 2021, whether by setting
targets (including commitments to net zeroi
), banning or phasing
out the use of fossil fuels, or increasing the cost of fossil-based
energy through carbon pricing.13
(p See Figure 15.) However,
while commitments to decarbonisation have been gaining
traction globally, this has not always led to the replacement of
existing fossil fuels with renewable energy sources.14
Greenhouse gas emission targets (including net zero and
carbon-neutral targets) reflect goals specifically set for reducing
emissions. During 2021, many countries announced new
greenhouse gas emission targets.15
For example, Zimbabwe
committed to 40% emission reductions by 2030 compared to
business as usual (conditional on international finance support),
and Lebanon raised its target to a 20% reduction by 2030, up
from 15% previously.16
Note: Carbon pricing policies include emission trading systems and carbon taxes. Net zero emissions targets shown include all levels of implementation
(declaration/pledge, in discussion, in policy document, in law and 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 2022 Data Pack for details.
No cities with policies are shown; see Renewables in Cities chapter for more comprehensive city policies.
Source: Based on World Bank, Climate Watch, IEA Global Electric Vehicle Outlook and REN21 Policy Database. See Reference Table R4 in GSR 2022 Data
Pack and endnote 13 for this chapter.
FIGURE 15.
Countries with Selected Climate Change Policies, 2021
No net zero emissions target
Carbon pricing policy
Net zero emissions target
Existing fossil fuel ban
in 1+ sectors
Targeted fossil fuel ban
in 1+ sectors
77

135 countries with
net zero policies
84
countries have both
a net zero and economy-wide
renewable energy target
69
8
14
15
In law
Declaration/
pledge
Achieved
(self-declared)
Proposed/
in discussion
29
In policy document
Economy-
wide renewable
energy is crucial
to achieve net
zero.
48
Economy-
wide
renewable
energy
targets
36
100%
economy-
wide
renewable
energy
targets
More than 17 countries announced new net zero commitments
in 2021, many in advance of the November climate talks.17
By year’s end, at least 135 countries as well as the European
Union (EU) – together accounting for around 88% of global
emissions – had in place some form of net zero target (including
announcements and targets under discussion).18
The EU made
its climate neutrality target for 2050 legally binding and set
an interim target for 55% emission reduction by 2030.19
Brazil
passed a net zero target for 2070, and India for 2050.20
The degree of implementation varies, as many net zero targets
are not backed by specific legislation.21
(p See Figure 16.) Of
countries’ 2021 targets, only around a fifth were enshrined in
law, around half were included in some type of policy and the
remaining third were in the declaration stage.22
Eight countries
(Benin, Bhutan, Cambodia, Gabon, Guinea-Bissau, Guyana,
Liberia, Madagascar and Suriname) declared they had already
achieved net zero emissions by late 2021; however, these
places are considered to still be developing and include in
their calculations the role of forests as natural carbon sinks.23
Meanwhile, only 84 of the 135 national governments with net
zero targets also had economy-wide renewable energy targets
(and only 36 had targets for 100% renewables), highlighting the
gap between commitments to net zero and plans to scale up
renewables to help achieve this.24
Carbon pricing policies aim to increase the price of fossil-based
energy compared to non-fossil sources such as renewables (and
nuclear power). By the end of 2021, such policies were in place in
65 jurisdictions at the national and sub-national levels, covering
an estimated 21.5% of global greenhouse gas emissions.25
At
least four countries (Austria, China, Germany and Indonesia) and
Washington state (US) introduced new carbon pricing policies in
2021, which are set to go into effect in 2023.26
China launched the
world’s largest emission trading scheme for power generation as
part of its targets to achieve peak emissions by 2030 and carbon
neutrality by 2060.27
Policies banning or phasing out the use of fossil fuels
can stimulate the uptake of renewables in various end-use
sectors, depending on the fuel being targeted. In 2021, the
most common type of fossil fuel ban enacted at the national
and state/provincial level was on coal, which is used primarily
to generate electricity (and, to a lesser extent, to provide heat
for buildings and industrial processes).28
Coal bans or phase-
outs can indirectly stimulate investment in renewable power
capacity, although they also can increase the uptake of nuclear
generation. At the same time, increases in wholesale energy
prices have led national governments to put in place measures
to shield consumers from the direct impact of rising energy
prices.29
(p See Box 6 and Table 3.)
Note: Numbers exclude sub-national targets.
Source: Based on Climate Watch and REN21 Policy Database. See endnote 21 for this chapter, Reference Table R4 in the GSR 2022 Data Pack.
FIGURE 16.
National Net Zero Policies and Status of Implementation and Renewable Energy Targets, 2021
78

Country
Reduced
energy
tax / VAT
Retail
price
regulation
Wholesale
price
regulation
Transfers to
vulnerable
groups
Mandate
to state-
owned
firms
Windfall
profits
tax
Business
support
Other
Austria n n n
Belgium n n n n
Brazil n
Bulgaria n n n
Croatia n n
Cyprus n n n
Czech Republic n n n n
Denmark n
El Salvador n
Estonia n n n n
Finland n n n
France n n n n
Germany n n n n
Greece n n n
Hungary n
Ireland n n n
Italy n n n n
Korea, Republic of n
Latvia n n
Lithuania n n n
Luxemburg n
Mexico n
Netherlands n n
Norway n n n
Peru n
Poland n n n
Portugal n n n n
Romania n n n n
Slovenia n n n n
South Africa n
Spain n n n n n n
Sweden n n n n
United Kingdom n n n n
United States n
POLICY
LANDSCAPE
02
BOX 6. National Policies to Shield Consumers from Rising Energy Prices
With the energy crisis unfolding in late 2021, followed by
the Russian Federation’s invasion of Ukraine in early 2022,
countries in Europe and around the world have experienced
energy price hikes. To shield consumers from these increases,
several governments have implemented short-term policies
to mitigate the price effect. Most of the measures have
focused on lowering energy taxes on fossil fuels, with many
specifically targeting low-income groups, which have been
among the most vulnerable to rising prices. (p See Table 3.)
In addition, several countries have planned medium-term
strategies to reduce reliance on fossil fuels and increase
national and regional energy security. For example, much of
the discussion in the EU has focused on reducing reliance
on Russian fossil fuels (in particular natural gas), including by
speeding up renewable energy solutions. (p See Sidebar 1 in
Global Overview chapter.)
TABLE 3.
Measures to Address Fossil Fuel Price Increases in Selected Countries, as of Early 2022
Note: Table includes measures enacted between September 2021 and March 2022. Excludes sub-national and supra-national policies.
Source: Bruegel and REN21 research. See endnote 29 for this chapter.
79

i Ultimately, the agreement was to “phase down”, rather than “phase out” coal generation.
ii This refers to coal burning that is carried out without some form of carbon capture and storage.
By year’s end, at least seven countries had committed to banning
or phasing out coal either at the national or state/provincial
level.30
Indonesia’s state-owned energy utility announced that
it would end the construction of new coal-fired power plants
after 2023 (although more than 20 gigawatts, GW, of new
coal capacity will be built until then).31
In Europe, Hungary
expedited the closure of its last coalfired power plant by five
years (targeting 2025 instead of 2030), and Bulgaria, Germany,
Romania and the United Kingdom committed to exiting coal,
with timelines varying between 2024 and 2040.32
At the state
level, Oregon (US) banned the expansion or new construction
of coal-fired as well as natural gas and other fossil fuel plants.33
In addition to individual country commitments, a key outcome
of the Glasgow climate talks was an agreement by more than 40
countries and several sub-national jurisdictions to phase downi
“unabated” coal power generationii
by the 2030s in developed
economies and by the 2040s in developing economies.34
(p See
Global Overview chapter.)
In the buildings sector, bans or support for phasing out
fossil fuels for heating (such as heating oil and fossil gas)
have the potential to stimulate the use of renewables. While
such bans typically are enacted by municipalities (p See
Renewables in Cities chapter), in 2021 at least two countries
took this step: Slovenia banned fuel oil and coal for heating
starting in 2023, and France banned fossil gas for heating in
new single-family homes starting in mid-2022 (and in new
collective housing starting in 2024).35
At the sub-national level,
the province of Quebec (Canada) banned fossil fuel heating in
new construction.36
In the transport sector, bans on fossil fuels for road transport
can incentivise biofuels-based transport and the use of electric
vehicles. While electric vehicles are not a renewable energy
technology in themselves, they provide a critical entry point for
higher uptake of renewables in transport, especially if combined
with policies for renewable electricity generation. Bans on
internal combustion engine (ICE) vehicles also support
uptake of electric vehicles and have been the most widespread
type of ban.
Policy support for decarbonisation of the transport sector
increased significantly in 2021, with new announcements bringing
the total number of national and sub-national jurisdictions with
bans on fossil fuel use in road transport to 30, up from 26 in 2020;
in addition, a partial ban exists in Mexico.37
Canada banned the
sale of fuel-burning new cars and light-duty trucks starting in
2035, the United Kingdom banned the sale of new petrol and
diesel heavy-goods vehicles and buses by 2040 (and the sale
of smaller diesel trucks from 2035), and Spain enacted a law
prohibiting the sale of fossil fuel vehicles by 2040.38
Singapore’s
new Green Plan includes ceasing sales of diesel cars and taxis
from 2025 and requiring all new car and taxi registrations to be
“cleaner energy” models starting in 2030.39
At the state level, New
York (US) enacted a law requiring all passenger vehicles sold in
the state to be emission-free by 2035 and to eliminate emissions
from medium- and heavy-duty vehicles by 2045.40
Ending government support for fossil fuel production and
exploration and enacting bans on funding for international
fossil fuel projects and on fossil fuel exports also have the
potential to indirectly support the uptake of renewables. In 2021,
China, Japan and the Republic of Korea committed to ending
funding for the construction of new coal power projects overseas
(but not necessarily domestically).41
Spain banned all new
coal, gas and oil exploration and production permits.42
Canada
announced that it would stop exporting thermal coal (but not
other types) by 2030 at the latest.43
At least seven
countrieshad
committed to banning or
phasing out coal either
at the national or state/
provincial level.
80

Renewable
Energy Targets,
2021
Number of countries
Economy-
wide
Power
Heating
and
cooling
Transport
0 25 50 75 100 125 150 175 195
118
118
+32
+32
135
135
+52
+52
29
29
28
28
+6
+6
+1
+1
Existing targets
Revised targets
New targets
POLICY
LANDSCAPE
02
RENEWABLE ENERGY TARGETS
By the end of 2021, 166 countries had in place some type of target
at the national and/or state or provincial level to increase the
uptake of renewables, either economy-wide or in specific sectors
– up from 165 countries at the end of 2020.44
(p See Figure 17.).
As in previous years, the greatest number of targets were in the
power sector, followed by the heating and cooling sector, while
the number of targets for transport was significantly lower.45
Several countries committed to economy-wide targets for 100%
renewable energy during the year. In Africa, the Democratic
Republic of the Congo, Kenya and Uganda all set targets for
100% renewables economy-wide by 2050.46
Fiji set a similar
target for 2036, the Marshall Islands for 2050, and Austria and
Barbados for 2030 – bringing the total number of countries with
economy-wide targets for 100% renewables to 36 by the end of
2021, up from 32 the previous year.47
Targets in the power sector continued to dominate, with renewable
power targets in 135 countries by year’s end, followed by the
heating and cooling sector, where 7 new countries announced new
or revised targets; this raised the total number of countries with
renewable heating targets from 22 in 2020 to 29 in 2022.48
Many of
the new heating and cooling targets were implemented in Europe,
including in Croatia, North Macedonia, Slovenia and Spain.49
Targets to increase the share of renewables in transport saw
further decline, with the number of countries with such targets in
place falling from 46 in 2019 to 28 in 2021, as many targets that
expired in 2020 were not updated and/or renewed.50
Most of the
existing targets are in EU Member States, guided by a region-
wide target to achieve at least 14% renewables in transport by
2030.51
Only Iceland passed a new transport target in 2021,
aiming for 100% renewable-based road transport by 2050, with
an intermediate target of 40% by 2030.52
In addition, several
countries adopted or revised biofuel and electric vehicle targets.
(p See Transport section in this chapter.)
An emerging trend has been to adopt renewable energy targets
specific to military operations.53
(p See Table 4.) Most of these
targets are for the use of solar PV to support the operations of
remote army bases, driven by opportunities to save energy costs,
boost resilience against grid outages from extreme weather
events or from cyberattacks, and contribute to national emission
reduction targets.54
Although targets on their own generally are insufficient to
stimulate investment, they continue to be an important expression
of a jurisdiction’s commitment to renewables. However, these
targets need to be converted into action through the adoption
and implementation of other complementary renewable energy
policies and regulations.
Note: New targets were announced in 2021, revised targets can include a revised target date or a revision of the actual share of renewable energy for a future
year. Transport target calculation excludes signatory countries to the Glasgow declaration calling on all new cars to be zero emission by 2040. See Reference
Tables R3 and R5-R10 in GSR2022 Data Pack.
FIGURE 17.
Renewable Energy Targets, 2021
81

i The BRICS countries are Brazil, the Russian Federation, India, China and South Africa.
ii Global public energy RD spending, including on demonstration projects, reached USD 32 billion in 2020, up 2% from 2019, although not all of this is
dedicated to renewable energy research. See endnote 65 for this chapter.
Country and Scope Target(s)
China:
Chinese People's Liberation Army
Micro-power grid systems (based on solar and wind with battery storage and diesel back-up)
for more than 80 border defence outposts in remote regions.
France:
Ministry of Armed Forces
Phase-out of 1,600 heavy fuel oil boilers by 2030; making available 2,000 hectares of land
through 2022 for utility-scale solar PV projects.
India:
Indian Navy
24 MW of solar PV by 2022 as part of the Environment Conservation Roadmap.
Japan:
Japan Defense Ministry
100% of defence facilities powered by renewable energy (proposed).
Pakistan:
Pakistan Army
1-5 MW solar parks in each garrison, with a total capacity of 40 MW.
Republic of Korea:
Ministry of Trade, Industry and
Energy and the Ministry of
National Defence
25% renewable electricity consumption by 2030. Installation of 137 MW of solar PV on military
bases and 320 MW on military land and use of geothermal cooling and heating systems.
United Kingdom:
Army
Four pilot solar farm projects installed in 2021, with total capacity of 2.3 MW
United States:
Army
Carbon-free electricity for Army installations by 2030, with renewable-based microgrids
on all posts by 2035 and net zero emissions from installations by 2045. An increasingly
electrified vehicle fleet, including developing electric tactical vehicles by 2050.
TABLE 4.
Renewable Energy Targets in Military Operations in Selected Countries, as of End-2021
Source: See endnote 53 for this chapter. Table also includes targets which have already been achieved.
RENEWABLES FOR ECONOMIC
DEVELOPMENT AND RECOVERY
Increasingly, renewables are being included as core components
of national economic development plans and strategies,
particularly given concerns about rising energy prices and the
security of energy supply.55
(p See Snapshot. Bangladesh.) While
no comprehensive data exist on this trend, an analysis of the BRICSi
countries – the largest emerging economies worldwide – shows
that all but the Russian Federation (a major fossil fuel producer)
have explicitly included renewables in their national plans.56
The Brazilian government launched a Green Growth National
PrograminOctober2021withthegoalofaligningeconomicgrowth
with sustainable development towards a green and low-carbon
economy while also generating jobs; as part of the programme,
Brazil will invest BRL 400 billion (USD 71 billion) in areas including
renewable energy, biodiversity and waste management.57
India’s
2047 vision, currently under development, has discussed aims to
make the country a leader in renewables.58
China, in its 14th Five-
Year Plan released in March 2021, committed to ramping up wind
and solar PV power as well as expanding power infrastructure
development and energy storage.59
South Africa’s 2012 national
development plan includes the goal of procuring at least 20 GW
of renewable electricity by 2030 and providing support to meet
the country’s target of 90% grid-connected electricity access.60
Several countries have used post-COVID recovery plans as
opportunities to support the shift to renewables. Between the start
of the pandemic and early 2022, governments committed more
than USD 710 billion to sustainable recovery measures by 2030
(p See Investment chapter); most of this was invested in member
countries of the Organisation for Economic Co-operation and
Development (OECD), particularly EU countries.61
Greece and
Italy both announced post-COVID recovery plans that include
billions of dollars each of investment in renewables, storage,
energy efficiency, and electric vehicles, and Spain announced a
plan to allocate EUR 6.9 billion (USD 7.8 billion) to renewables
and related technologies (including renewable hydrogen, storage
and electric mobility).62
Canada’s federal recovery plan supports
renewable energy and electric vehicles.63
Several countries announced investment in renewable energy
research and demonstration projects during 2021, with some
of the funds earmarked in development plans (China) or as
part of recovery funds (France and the United Kingdom).64
For
many energy technologies, public funding is needed for initial
research and demonstration projects and to help leverage private
investmentii
.65
The United States announced USD 100 million in
82

POLICY
LANDSCAPE
02
funding for clean energy technology research.66
In China, the
14th Five-Year Plan gives a central role to innovation research,
and Japan’s Green Innovation Fund plans to allocate around
USD 19 billion to low-carbon technology demonstration until
2023 (complemented by USD 15 billion in tax credits for private
involvement in such projects).67
The EU allocated EUR 1.1 billion
(USD 1.2 billion) for seven large innovation projects, most of them
for renewables, under its Innovation Fund.68
France, as part of
its EUR 100 billion (USD 113 billion) recovery and resilience plan,
will invest EUR 1 billion (USD 1.1 billion) in renewable innovation
projects as well as hydrogen research.69
Some jurisdictions have used economic development and
post-COVID recovery plans as an opportunity to foster job
creation and workforce training in the renewables sector.70
(p See Sidebar 5 in this chapter, and Sidebar 2 in Global Overview
chapter.) India, Scotland (UK) and the United States, as well
as several sub-national governments, have developed plans
mentioning the importance of developing a skilled workforce to
advance the energy transition.71
SNAPSHOT. BANGLADESH
Mujib Climate Prosperity Plan
The Mujib Climate Prosperity Plan, published in
September 2021, serves as Bangladesh’s roadmap for
climate resilience, energy independence and access,
and renewable energy through 2030. Through this plan,
the country aims to achieve 30% renewable energy
consumption and 30% electrified transport, driven by the
need to protect vulnerable communities and encourage
economic development. This includes goals to modernise
the grid, extend energy access to 100% of the population,
replace domestic energy capacity with renewables
(including green hydrogen) and achieve 100% clean
cooking solutions.
The framework is expected to result in the creation of
4.1 million climate-resilient jobs. Investment needs of
USD 80 billion will be financed through a mix of public
and private financing along with international partner
support. In 2021, Bangladesh rejected proposals to build
10 new coal-fired power plants. Instead, the plan foresees
that existing coal and natural gas plants will become
energy hubs, converted to either green hydrogen,
waste-to-energy or biomass plants. The goal is to reduce
natural gas imports and to upgrade existing infrastructure
to be capable of handling 30% green hydrogen starting
in 2030.
83

SIDEBAR 5. Educating the Workforce for the Energy Transition
To meet the growing demand for a renewable energy
workforce, several national governments, as well as
universities, technical schools, non-governmental
organisations, and oil and gas companies, are taking steps
to build the necessary workforce for the future and to re-skill
existing workers. In addition to the 12 million people already
working in renewables as of 2020, an estimated additional
85 million jobs related to the energy transition will need to be
filled by 2030. (p See Sidebar 2 in Global Overview chapter.)
Several national and sub-national jurisdictions have
launched and supported programmes to address the issue
of re-skilling. In the United States, where the positions of
wind turbine service technician and solar PV installer are
expected to grow 68% and 52% respectively by 2030,
government-funded resources such as WINDExchange and
the Solar Training Network outline educational and training
programmes. India’s Skill Council for Green Jobs public-
private partnership has provided trainings, through partners,
for around 500,000 persons in areas such as renewables,
electric vehicles and carbon sinks. After a drastic increase
in oil and gas unemployment from 2014 to 2017, Scotland
provided GBP 12 million (USD 16 million) for an Oil and Gas
Transition Training Fund that re-skills workers for careers in
wind turbine engineering and infrastructure.
At the sub-national level, the Renewable Denver Initiative,
funded by the state of Colorado, includes a workforce
training programme for solar PV, supporting the installation
of community solar gardens on municipal land. In New
York, a USD 25 million fund was announced in late 2021 to
re-skill displaced workers in the fossil fuel sector and from
disadvantaged communities, to new renewable energy jobs.
A workshop in Canberra (Australia) helps to up-skill auto
mechanics to work with electric vehicles and to train police,
firefighters and paramedics on how to safely respond to
incidents involving electric vehicles. Victoria (Australia)
launched a USD 11 million plan to subsidise 50% of the cost
of apprenticeships, professional mentoring and ongoing
education for women entering the renewables industry as
electricians, plumbers, solar installers and more.
Although no consolidated data exist, initial research
indicates that education on renewables is most common
at the master’s level and in short-term professional
development training. At least 126 masters’ programmes
in G20 countries were dedicated to renewable energy as
of early 2022; in addition, programmes in other disciplines
have integrated renewables (and energy efficiency) into
their curricula. The Royal Institute of British Architects is
making climate literacy a mandatory component in its 109
schools in 23 countries, which includes factoring transport,
waste and energy efficiency into construction. Universities
such as Yale and Harvard offer courses for working
professionals in business and finance to understand and
support renewable energy projects. Duke, MIT and the
University of Pennsylvania, among many others, have
massive open online courses for public skills learning on
renewable energy systems and policy.
Several initiatives aim to build up a local workforce for
distributed renewables for energy access, to improve
educational opportunities for the more than 230 million
children worldwide who attend primary schools without
electricityi
. New Energy Nexus has provided training,
investment and financing to create 650 new jobs in
renewables for local communities supporting education,
clean cooking and electricity access in rural Uganda. The
Bharatiya Vikas Trust has up-skilled 15,000 financiers and
50,000 entrepreneurs since 1996 to close the finance gap
on people and businesses using renewable as a means to
earn an income.
Oil and gas companies have initiated programmes to re-skill
their workers towards renewables, mirroring efforts to shift
from fossil fuel production to greater integration of renewable
energy. (p See Sidebar 7 in the Investment chapter.) Saudi
Aramco, Saudi Arabia’s state-run oil company, established
the National Power Academy to provide vocational training
and education in areas such as smart grids, energy efficiency
and renewables. Ørsted, Denmark’s oil giant-turned-
renewables company, is teaming up with Falck Renewables
and BlueFloat Energy to create a streamline for colleges in
Scotland and industry partners to meet the need for workers
to install offshore wind farms. Iberdrola (Spain) aims to re-skill
15,000 people over a two-year period, including installers of
solar panels and electric vehicle charging infrastructure, and
electric heat technicians.
Several initiatives exist to increase the share of women
in the renewable energy workforceii
. Sri Lanka, in its 2019
National Energy Policy and Strategies plan, includes
empowering women and youth in agriculture, rural and
primary industries through electricity access, energy
efficiency and conservation. In Africa, the state-owned
Ethiopia Electric Utility looks to employ 30% women by
2030 by providing scholarships and internships in STEM
(science, technology, engineering and math) fields.
i Only 27% of primary schools in low-income countries had access to electricity in 2020 (latest data available).
ii The share of women in the renewable energy sector was around 32% in 2018 (latest data available), up from 22% in 2010.
84

Number of countries
Feed-in tariff / premium payment Tendering
92
131 The shift towards
competitive
auctions
and tenders
continued
in 2021.
140
120
100
80
60
40
20
0
2017 2019 2020 2021
2015
2013
2011 2018
2016
2014
2012
POLICY
LANDSCAPE
02
POWER
The number of countries with renewable power policies again
increased in 2021, continuing a multiyear trend. Policies to
support renewables in the power sector include: targets,
renewable portfolio standards (RPS), feed-in policies (tariffs and
premiums), auctions and tenders, renewable energy certificates
(RECs) or Guarantees of Origin (GOs), net metering and other
policies to encourage self-consumption, as well as fiscal and
financial incentives (such as grants, rebates and tax credits).
Most countries support renewable power with a mixture of
policy instruments that often vary depending on the technology,
scale or other features of installation (e.g., centralised or
decentralised).
At least 51 countries introduced new or updated targets for the
power sector in 2021, and by year’s end at least 135 countries
had some form of renewable electricity target; this was down
from 137 countries in 2020, as some targets expired in 2020
and were not replaced.72
Meanwhile, the number of countries
with regulatory policies for renewables in the power sector
continued to expand, rising from 145 in 2020 to 156 in 2021.73
As
in prior years, auctions, tenders and other competitive pricing
strategies continued to overtake feed-in tariff policies.
Feed-in policies, including feed-in tariffs (FITs) and feed-in
premiums (FIPs), are used to promote both large-scale
(centralised) and small-scale (decentralised) renewable power
generation, and they remain among the most widely used policy
mechanisms for supporting renewable power.74
(p See Figure 18.)
In 2021, the number of jurisdictions with FITs increased for the first
time in recent years, to 92 (up from 83 in 2020).75
Ireland, which
had removed its FIT in 2015, re-introduced it to boost citizen and
community participation in the energy transition.76
Trinidad and
Tobago introduced a FIT to support solar PV rooftop systems.77
In China, where the last national-level FIT was set to expire by the
end of 2022, Guangdong become the first province to introduce
a FIT, in mid-2021.78
(p See Snapshot: China.)
Several countries held renewable energy auctions or tenders
at the national or sub-national levels during the year.79
Albania
launched its first tender for onshore wind power capacity
(following two tenders for solar PV capacity in 2020), driven
by the need to diversify its electricity mix, which is dominated
by hydropower.80
In Spain, nearly 1 GW of wind power capacity
was awarded to seven companies at a wind-specific renewables
auction.81
Outside of Europe, Japan held its first tender for floating
offshore wind power, and Chinese Taipei awarded 5.5 GW of
offshore wind power capacity through auctions (the national FIT
was applied to the first 3.8 GW of projects).82
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: See endnote 74 for this chapter and Reference Tables R12 and R13.
FIGURE 18.
Renewable Energy Feed-in Tariffs and Tenders, 2010-2021
85

Net metering continued to be a popular policy instrument to
support renewable power. At least 10 countries or sub-national
jurisdictions implemented new – or enhanced existing – net
metering policies in 2021.83
In India, the state of Kerala introduced
a new net metering rooftop programme with a goal of installing
solar panels on 75,000 homes, and West Bengal introduced net
metering for household rooftop solar PV between 1 kW and 5 kW.84
Malaysia introduced a new programme that allows residential
customers to export 100 MW of surplus solar generation to the
grid, and Indonesia revised its legislation for rooftop PV to ensure
that customers earn credit for the surplus power they inject to
the grid at the same tariff they pay for buying electricity.85
Bolivia introduced net metering for distributed renewable
generation for both small-scale generation and larger commercial
systems.86
In Europe, Romania amended its net metering
programme to support residential solar PV, and Montenegro
implemented its first net metering programme for 3,000 residential
rooftop PV systems.87
The Russian Federation introduced net
metering for solar and other renewable energy generators under
15 kW.88
SNAPSHOT. CHINA
A Renewable Policy Transition
China has undergone a major policy change In recent
years, shifting its renewable energy pricing from a premium
feed-in tariff (FIT) model to a “grid parity” model where
renewable and coal plants sell electricity at the same price.
The country’s National Energy Administration stopped
approving FITs for new renewable projects in 2018, followed
by a decision to phase out key FIT support schemes,
including: for utility-scale, industrial and commercial
rooftop solar PV systems and onshore wind power by the
end of 2020; for residential solar PV power by the end of
2021; and for offshore wind power by the end of 2022. The
move was driven by backlogs in FIT payments and by the
plunging cost of PV modules, which has made systems
more affordable. The central government policy permits
local subsidisation of offshore wind power and CSP at a
regional level, with Guangdong becoming the first province
to provide such a subsidy in mid-2021.
This policy transition led annual solar PV installations in
China to fall more than 30% in 2019. However, as installers
sought to benefit from the final years of FIT support, the
market grew more than 60% in 2020, to reach a record
55 GW of new installations in 2021. The government’s 14th
Five-Year-Plan, released in March 2021, puts a continued
focus on wind and solar PV power as well as energy
integration and energy storage, aiming for a 20% non-fossil
fuel share in the energy mix by 2025. China’s recently
announced targets for peak carbon emissions by 2030 and
carbon neutrality by 2060 also have driven demand for
renewables.
86

Country/Jurisdiction Solar PV mandate
China
Fujian, Guangzhou, Shaanxi
Jiangxi, Gansu and Zhejiang
Mandatory on 20% of residential rooftops, 30% of commercial/industrial, 40% of public
facilities and 50% of government buildings; more trial provinces are expected
Germany
Baden-Württemberg Mandatory for non-residential buildings from January 2022, for new residential buildings from
May 2022 and for renovated buildings from 2023
Berlin Mandatory (along with solar thermal) for new buildings and building renovations for residential
buildings as of 2023
Hamburg Mandatory on new buildings from 2023 and for building renovations from 2025
Niedersachsen Mandatory on new commercial buildings with rooftops greater than 75 square metres
Nordrhein-Westfalen Mandatory on new car parks of more than 35 spaces from January 2022
Rheinland-Pfalz Mandatory (along with solar thermal) on new commercial buildings and new car parks of
more than 50 spaces
Schleswig-Holstein Mandatory on new car parks of more than 100 spaces, on at least 10% of rooftop space for
solar PV for new buildings, and for building renovations on non-residential buildings, from
2022 onwards
United States Four pilot solar farm projects installed in 2021, with total capacity of 2.3 MW
California Mandatory (with battery storage) in new commercial buildings and high-rise residential
buildings, starting in 2023
POLICY
LANDSCAPE
02
Several US states reduced or removed their net metering
credits during the year. Indiana reduced its net metering rate,
and Connecticut replaced net metering with a new programme
that changes how owners are compensated for their power
generation.89
At least 17 countries introduced new financial or fiscal policies
in 2021 – including Denmark, France, and Italy in Europe, and
Australia and New Zealand in Oceania.90
Morocco provided
MAD 52.1 billion (USD 5.6 billion) for major solar projects in
the country, and Bangladesh provided USD 50 million to install
80,000 solar home systems and 5,000 community arrays.91
In Europe, Croatia implemented a EUR 7.4 million (USD 8.4
billion) rebate programme for rooftop solar PV installations for
businesses and homeowners, Malta announced EUR 26 million
(USD 29.4 million) in funding for large-scale renewable energy
projects, Sweden made available SEK 260 million (USD 28.7
million) in rebates for homeowners who install solar PV, and the
United Kingdom provided GBP 265 million (USD 357 million)
in subsidies for renewables.92
At the state level, Kerala (India)
began offering a subsidy to install rooftop solar PV, with eligible
participants having to pay only 12% of the costs.93
Renewable portfolio standards (RPS) – mandates requiring
utilities (or companies) to install or use a certain share of
renewable energy – also expanded. As of 2021, 31 US states
and the District of Columbia had legally binding RPS and goals,
12 of which require 100% clean electricity by 2050 or earlier;
in addition, 7 US states have non-binding renewable portfolio
goals.94
Four states –
Delaware, Illinois, North
Carolina and Oregon
– updated their RPS
policies during the year,
while Nebraska approved
its first clean energy goal
(100% clean electricity
by 2050).95
Outside
of the United States,
Colombia introduced an
obligation for all power companies operating in the wholesale
energy market to ensure that at least 10% of the electricity
they distribute is generated with renewable technologies, as of
January 2022. 96
While no rooftop solar PV mandates for new or existing
buildings exist at the national level, several states/provinces
have implemented such policies.97
(p See Table 5.) In 2021,
the US state of California adopted a building code making it
mandatory to include solar PV with battery storage in new
commercial buildings and high-rise residential buildings.98
In Germany, 7 out of 16 states have solar PV mandates, most
of which apply not only to new buildings but also to major
rooftop renovations.99
Several Chinese provinces have solar
mandates, and the national government launched a call to
provincial offices to suggest counties where such mandates
could be trialled.100
TABLE 5.
Solar PV Mandates at the Sub-national Level in Selected Jurisdictions, as of End-2021
While no rooftop
solar PV mandates
for new or existing
buildings exist at the
national level, several
states/provinces have
implemented such
policies.
87

POLICIES TO SUPPORT
COMMUNITY ENERGY
Despite the growth in policy
support for renewables,
local opposition to renew
able energy projects
continued to limit project
deployment in some
regions.101
To support
a more positive public
response to renewables,
governments at all levels have adopted policies that enable
residents, businesses, communities and others to develop, own,
operate, invest in and otherwise benefit from projects.102
Such
community energy arrangements occur mainly in the power
sector, with related policies supporting self-consumption, virtual
net metering and various forms of shared ownership.103
During 2021, at least 13 Canadian provinces and US states
implemented new community energy policies. Nova Scotia
(Canada) for the first time allowed shared community ownership
of net metered solar PV generation.104
In the United States, New
Mexico established a community solar programme requiring
that 30% of the output go to low-income customers or service
organisations.105
Delaware and Illinois increased their limits on the
size of community solar, and Oregon provided USD 50 million in
grants for community projects in cities outside Portland.106
New
York state provided USD 53 million in incentives for community
solar projects that dedicate at least 20% of their capacity to low-
and moderate-income households, affordable housing providers
and facilities serving disadvantaged communities.107
Community
programmes also are starting to emerge outside North America
and Europe.
SYSTEM INTEGRATION POLICIES
Policies that support energy storage, extensions and
improvements to grid infrastructure, smart grid technologies
and electric vehicle charging stations can help minimise
the potential negative impacts and maximise the benefits
associated with variable renewable energy.108
(p See Energy
Systems chapter.)
Policies to improve electric grid infrastructure, including
those aimed at expanding or modernising transmission and
distribution systems, continued to gain ground in 2021. Cyprus,
Greece and Israel agreed to implement an underground cable
to link the countries’ power grids and boost their ability to
use and trade renewable energy.109
In the United States,
the Bipartisan Infrastructure Deal included USD 65 billion
to upgrade power infrastructure by building thousands of
kilometres of new transmission lines to facilitate the expansion
of renewables.110
The country also announced plans to provide
up to USD 8.25 billion in loans to companies to expand
transmission capacity, including support for offshore wind
power connections.111
At the state level, New York approved
a 150-kilometre transmission line to help meet its renewable
energy goals.112
China plans to invest USD 350 billion during
2021-2025 to upgrade its grid and build new power systems
with improved voltage regulation and better compatibility with
renewables.113
Policies that promote energy storage also help with successful
system integration, since storage can make it easier to balance
electricity supply and demand and minimise the curtailment of
generation. In 2021, the EU implemented a EUR 12 billion (USD 14
billion) 12-nation European Battery Innovation project, which will
permit Member States to support innovation in battery storage.114
Spain launched an Energy Storage Strategy that targets 20 GW
of large-scale and distributed storage by 2030, and 30 GW by
2050, to increase system flexibility and network stability.115
At the
sub-national level, Queensland (Australia) announced plans to
install five large-scale, network-connected batteries, and Maine
(US) announced a goal of 400 MW of installed battery capacity
by the end of 2030.116
Policies also were enacted to support direct linking of solar PV
and energy storage. For example, India extended its national INR
18,100 crore (USD 24 billion) solar production programme, which
provides incentives to domestic and international companies for
setting up battery manufacturing plants.117
At the sub-national
level, Oregon (US) allocated USD 10 million to a solar-plus-
storage rebate programme focused on low-income customers.118
HEATING AND COOLING IN BUILDINGS
Heating of space and water for buildings accounted for just under
a quarter of global final energy consumption in 2021.119
Worldwide,
the supply of heat in buildings remains heavily dependent on
fossil fuels, with renewable sources meeting only around 11% of
global heat demand in 2020, a share that has remained relatively
unchanged during the last decade.120
Bioenergy is the main source of renewable heat in buildingsi
;
other sources include geothermal and solar thermal energy as
well as the use of renewable electricity, for example through
electric heat pumps.121
Interest in electrification of heatingii
in
buildings has gained traction. To the extent that the electricity is
generated from renewables, this can increase the penetration of
renewables in the buildings sector. (p See Heat Pumps section
in Market and Industry chapter.) In 2021, several jurisdictions
implemented policies targeting the electrification of heating and
cooling in buildings.122
i Mainly through the use of wood and pellet stoves and boilers and in district heating networks.
ii The electrification of heating is only 100% renewable to the extent that the electricity used is generated from renewable sources. Thermal energy provided by
heat pumps also has a component of ambient energy that is considered renewable.
The supply of heat
in buildings remains
heavily dependent on
fossil fuels, with renewable
sources meeting only
around 11%of global
heat demand in 2020.
88

POLICY
LANDSCAPE
02
Policies that promote renewable heating in buildings include:
targets, financial incentives, support for electrification and
support for renewable district heating. Bans on fossil fuel heating
and greenhouse gas emission reduction targets, including net
zero targets, also can indirectly encourage the production and
use of renewable heating. Heating policies for buildings tend to
differentiate among new and existing buildings as well as building
types (residential, commercial, industrial and public)i
. For example,
regulatory policies such as technology mandates typically apply
to new construction, whereas existing buildings often are targeted
by financial policies to install renewable heat systems. In regions
with high urbanisation and population growth, the distinction
between new and existing buildings can be critical, since half of
the building stock projected to be in place in 2060 has not yet
been built (mainly in Africa and Asia).123
In Europe, where building
replacement is slow, the focus on retrofitting has grown.124
By the end of 2021, at least 29 countries had committed to
renewable heating and cooling targets. Although this was up
significantly from only 22 targets in 2020, it too reflects the trend of
numerous expired targets not being replaced.125
Chile, in its 2021
National Heat and Cold Strategy, announced an 80% renewable
energy target for household heating and cooling by 2050 (using
mainly solar PV and biomass).126
Croatia set a 36.6% renewable
heating and cooling target by 2030 (including cogeneration), and
Lebanon passed a 11% renewable heating by target by 2030.127
At least 13 national jurisdictions implemented or updated some
form of building-specific renewable heating policy in 2021.128
However, the total number of countries with building-specific
heating policies remained the same as in 2020, at 55, as all
countries that implemented or revised their policies in 2021
already had existing policies.129
Policy developments in heating
and cooling for buildings continued to be more scarce than
policies directed at electricity generation and transport. As in
2020, only 10 countries had renewable heat support policies
covering heating in all type of buildings (including residential,
commercial, industrial and public).130
(p See Figure 19.)
i For example, electrification is often more cost-effective in new buildings, where builders can avoid the cost of installing natural gas lines and meters, whereas
it is more difficult and costly to electrify existing buildings.
Note: Sectors include residential, industrial, commercial and public facilities. Policy types used for map shading include investment subsidies/grants, rebates,
tax credits, tax deductions, loans and feed-in tariffs. Renewable energy mandates are the obligation to meet a certain renewable standard for heat, such as
the use of a specified technology. Figure does not show policies at the sub-national level.
Source: REN21 Policy Database. See Reference Table R11 in the GSR 2022 Data Pack and endnote 130 for this chapter.
FIGURE 19.
Sectoral Coverage of National Renewable Heating and Cooling Financial and Regulatory Policies, as of End-2021
Number of
sectors covered
3 sectors
1 sector
2 sectors
Zero sectors or no data
4 sectors
Targeted fossil fuel bans in buildings/industry
Existing fossil fuel bans in buildings/industry
Renewable energy mandate
89

Fiscal and financial incentives, including grants, rebates, tax
incentives, and loan programmes, remained the most popular
form of support to scale up renewable heating. During 2021,
most financial and fiscal support covered multiple heating
technologies, and most new policies were adopted in Europei
.
France extended an existing tax credit for households that
install solar thermal water heaters as well as ground- and air-
source heat pumps, and Luxembourg extended through the
end of the year a programme that provides financial assistance
for installing solar thermal systems and wood-fired boilers (as
well as heat pumps) and for connecting to a renewable heating
network.131
Malta launched several programmes to encourage
the use of renewables for air and water heating in buildings (with
a focus on solar water heaters and air-to-water heat pumps for
households without roof access), and Austria allocated funds to
support feasibility studies and the installation of solar thermal
systems.132
Outside of Europe, Canada provided funding to reduce remote
communities’ reliance on diesel for heating by increasing the
use of local renewable sources such as modern bioenergy.133
The country’s Greener Homes Grant provides up to CAD 5,000
(USD 3,912) for energy efficiency improvements and
electrification of heating, including through the installation of
heat pumps.134
New Zealand provided nearly NZD 3 million
(USD 2 million) to support renewable heat installations for
Maori and public housing, including solar thermal water heating
(as well as solar PV plus storage).135
While no new building codes were adopted at the national level
to require the use of renewable heat in buildings, at least two
US states enacted mandates. Connecticut and Rhode Island
increased blending requirements for heating oil to be 50%
biodiesel by 2035 and 2030 respectively.136
In addition, several
states/provinces around the world mandated the use of solar PV
in buildings, often linked to codes requiring all-electric buildings.
(p See Power section in this chapter.)
Electrification of heating and cooling can increase the
penetration of renewables in the buildings sector if the electricity
is generated from renewable sources. Globally, electrification
of heating and cooling has increased: in 2020, electric heaters,
boilers and heat pumps for buildings consumed around 11% of
total global electricity generation.137
In 2021, as in previous years,
policy makers continued to give attention to policies targeting
the electrification of heating and cooling in buildings, with some
countries setting specific targets for heat pumps. For example,
Ireland announced its ambition to install 600,000 heat pumps by
2030, of which 400,000 are to be added in existing buildings.138
Governments also committed funding for heat pump
installations.139
(p See Table 6.) For example, the United
Kingdom launched its Ten Point Plan for heating and buildings,
which includes phasing out the installation of new natural gas
boilers from 2035 and providing a boiler upgrade programme
that offers households GBP 5,000 (USD 6,744) to switch to an
air-source heat pump and GBP 6,000 (USD 8,093) to switch to
a ground-source heat pump.140
i For example, in Austria, Denmark, France, Ireland, Italy, Luxembourg, Sweden and the United Kingdom.
In 2020, electric heaters,
boilers and heat pumps
for buildings consumed
around 11%of
total global electricity
generation.
90

Country Incentive
Canada Up to CAD 5,000 (USD 3,912) for the installation of heat pumps
British Columbia CAD 260 million (USD 203 million) over five years for fuel switching from fossil fuels to electricity
Denmark Exemption of grid disconnection fee, and funding for installation of heat pumps
France Tax incentive for heat pumps
Italy 110% Superbonus tax deduction that includes residential heat pumps
Luxembourg Up to 25% of the installation costs for heat pumps
Malta Grant of up to GBP 1,000 (USD 1,348 )
United Kingdom Boiler upgrade programme for households of GBP 5,000 (USD 6,744) for air-source heat pump
and GBP 6,000 (USD 8,093) for ground-source heat pump
United States Four pilot solar farm projects installed in 2021, with total capacity of 2.3 MW
New York USD 15 million fund for community heat pump systems
POLICY
LANDSCAPE
02
SNAPSHOT. CHILE
Heating and Cooling Strategy
Chile’s National Heat and Cold Strategy, issued in 2021,
aims for 80% “sustainable” energy use in household
heating and cooling by 2050, including a 65% reduction
in the greenhouse gas emissions from supplying heat
and cold by 2050. These goals are to be met through
renewables, including replacing fossil fuels with biomass
energy or with solar PV plus electric heat pumps. The
Strategy also promotes district energy projects using
ground- and air-source heat pumps, as part of a goal
to assure that 75% of Chilean residents can meet their
heating and cooling needs in a sustainable, reliable and
affordable way. The strategy aims to improve health,
create new jobs, increase savings, and decrease
emissions and fossil fuel dependency.
TABLE 6.
New Financial and Fiscal Policies for Heat Pumps Adopted in Selected Countries/Sub-regions, 2021
Note: The table includes financial and fiscal incentives passed in 2021; the list of countries is not exhaustive.
91

SNAPSHOT. CYPRUS
Renewable Energy and Energy Efficiency
In 2021, Cyprus implemented a new financial incentive
focused on energy efficiency and renewables in residential
buildings. The funding encourages homeowners to install
efficiency measures such as insulation and new windows
and doors, as well as solar PV, battery storage, heat
pumps and smart energy management systems. With the
help of a qualified expert, homeowners can decide on the
work required to reduce household energy consumption at
least 60%. The government will reimburse 60-80% of the
eligible renovation budget, depending on the homeowner’s
income status. The European Regional Development Fund
and the Cyprus government are co-financing the project,
which kicked off in March 2021 with a budget of EUR 30
million (USD 33.9 million).
District heating networks are another entry point for
renewable energy use in buildings. Several governments
provided financial support in 2021 to advance the use of direct
thermal renewable technologies as well as heat pumps for
district heating.141
(p See Snapshot: Chile.) Denmark provided
DKK 44.6 million (USD 7 million) to support the installation
of commercial-scale electric heat pumps for use in district
networks, with eligible projects required to source at least
50% of their heat from renewables or surplus heat.142
In the
United Kingdom, a GBP 10 million (USD 13.4 million) fund was
available for developing low-carbon district energy networks;
this scheme was replaced in early 2022 by a GBP 288 million
(USD 388 million) Green Heat Network Fund.143
In Serbia, a 2021
law provides financial
support for renewable
heating and cooling,
allows companies to feed
it into existing district
energy infrastructure and
requires these utilities
to purchase surplus
heat from both private
and public operators of
renewable heat plants.144
District heating
networksare
another entry point for
renewable energy use in
buildings.
92

POLICY
LANDSCAPE
02
Source: Based on GlobalABC and IEA. See endnote 149 for this chapter.
FIGURE 20.
Coverage of Energy Codes for New Buildings, 2021
In development
New or updated code in 2021
Voluntary
Mandatory
No known code
Sub-national
Dominica
Barbados
Antigua
Barbuda
Trinidad
Tobago
St. Vincent
the Grenadines
Grenada
St. Lucia
Saint Kitts
Nevis
Building Energy Code
ENERGY EFFICIENCY
Policies that mandate or encourage improvements in the
efficiency of energy use in buildings play an important role in
enabling new opportunities for renewable energy technologies.145
(p See Snapshot: Cyprus.) During 2021, at least nine countries
implemented new energy efficiency policies, some of which
included support for renewables.146
For example, the UK
government provided GBP 562 million (USD 758 million) in
funding for energy efficiency upgrades for 50,000 households,
including installations of heat pumps and solar PV systems.147
Energy efficiency in buildings also has been advanced through
building codes mandating the construction and maintenance of
low-energy buildings. Even when renewables are not required
explicitly, such codes can positively affect building energy
demand by mandating energy efficiency improvements.148
By the
end of 2021, 80 countries had in place mandatory or voluntary
building codes for new buildings (up from 67 countries in 2020),
either on the national or sub-national level.149
(p See Figure 20.)
Of these 80 countries, 43 had mandatory national codes for both
residential and non-residential new buildings.150
As part of its
carbon neutrality objective, China published an energy code that
emphasises reducing the energy consumption of buildings.151
93

TRANSPORT
The transport sector accounted for around 30% of global final
energy consumption in 2021.152
It has the lowest renewable energy
share among the end-use sectors, with 3.3% biofuels and 0.3%
renewableelectricity;theremainingenergyisconsumedintheform
of diesel, petrol, aviation kerosene, and marine gas and oil.153
As of
2021, only a handful of countries included measures for renewable-
based transport in their NDCs, but policy makers increasingly are
focusing on greenhouse gas emissions from transport and the
potential role of renewables (particularly renewable electricity in
electric vehicles) in reducing them.154
As in previous years, policies
supporting renewables focused mainly on road transport, with
rail, aviation and shipping receiving far less attention.
Although biofuel support policies have been the most common
type of renewable energy policy in the transport sector for
many years, policies aimed at the electrification of transport –
particularly road transport – have increased significantly. Most
transport electrification policies are not linked explicitly with
renewable power generation, and as such they increase the
penetration of renewables in the sector only to the extent that the
electrified transport relies on renewable generation.
Some countries have
adopted strategies to
reduce energy demand in
transport, complementing
a shift to renewables
with strategies to
promote more efficient
transport modes, such
as improved vehicle
technology, (renewables-
based) public transport,
walking and cycling.
Together, these strategies – commonly referred to as Avoid-Shift-
Improve – can greatly decrease (or slow the increase in) energy
demand, enabling a faster shift to renewables.155
In 2021, the
United Kingdom published its transport decarbonisation plan,
which includes not only a strategy to decarbonise road, maritime
and air transport, but also a shift to electric buses and a strategy
to boost walking and cycling by improving street infrastructure
and increasing investments in local transport systems.156
Note: Shading shows countries and states/provinces with mandates for either biodiesel, ethanol or both. See Reference Table R10.
Source: REN21 Policy Database. See endnote 162 for this chapter.
FIGURE 21.
National and Sub-National Renewable Biofuel Mandates and Targets, End-2021
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
Countries with new and
revised biofuel targets
in 2021
In 2021,
seven national
and sub-national
jurisdictions adopted
new, or revised
existing, biofuel
targets.
Policies supporting the
electrification of
road transport
through the use of electric
vehicles continued to
garner increased policy
attention.
94

POLICY
LANDSCAPE
02
ROAD TRANSPORT
Policies to incentivise renewables in road transport include
mandates and incentives to support the production and use of
biofuels as well as the use of renewable electricity in electric
vehicles. Some climate change policies, such as fossil fuel bans
and restrictions, carbon pricing, and requirements for zero-
emission vehicles, also have indirectly increased the use of
renewables in road transport.
The use of biofuels in road transport continued to increase
in 2021, despite a dip during 2020 and early 2021 related to
transport disruption during the COVID-19 pandemic. The principal
drivers of expanded biofuel use are blending requirements,
financial incentives for producers, public procurement
programmes, and financial support for fuelling, blending and
distribution infrastructure.157
Only two countries passed new targets for biofuels in 2021, as
part of their updated NDCs: Sudan included a 10% biofuels blend
as a key greenhouse gas reduction policy, and Vanuatu included
a biodiesel blending target of 20% by 2030.158
India’s goal of 20%
ethanol blending in petrol, previously set for 2030, was moved
up to 2025.159
Indonesia revised its biodiesel target up to 40%
by 2022 (from 30% by 2025) and has targets for 20% ethanol
blending by 2025 and 5% biofuels in aviation fuel by 2025.160
In
total, more than 30 national and sub-national jurisdictions had
biofuel targets in 2021 (10 of them with advanced biofuel targets),
and 7 national and sub-national jurisdictions adopted new, or
revised existing, biofuel targets during the year.161
Biofuel blending mandates remain the most widely used
renewable transport policies; 65 countries had national-level
blending mandates at year’s end (unchanged since 2017).162
(p See Figure 21.) However, at least two countries reduced
existing requirements: Argentina lowered its national biodiesel
blending mandate from 10% to 5% with the aim of keeping fuel
prices in check, and Indonesia reduced its ethanol blending
mandate from 5% to 2% due to a lack of supply (it also delayed
plans to increase the palm oil content of its biodiesel programme
to 40% due to record-high palm oil prices).163
Malaysia pushed the roll-out of its biodiesel blend mandate
(20% palm oil component) to early 2022.164
Citing sustainability
concerns, Belgium announced a ban on palm oil-based biofuel
from 2022 and soybased biofuel from 2023.165
Although Bolivia did not change its blending requirements, the
government announced the increased construction of biodiesel
plants (to enter into operation in 2024, with expected output of
12,000 barrels per day) in order to reduce fuel imports.166
Sweden
extended its tax exemption for biofuels by one year, to 2022.167
At
the sub-national level in 2021, the province of Manitoba (Canada)
increased its ethanol blending requirement from 8.5% to 9.25%
(and then to 10% in 2022) and its biodiesel blending requirement
from 2% to 3.5% (5% in 2022).168
Increased support policies for electric vehiclesi
have helped
stimulate a major expansion in the last decade. Although this
support spans the globe, China, India, Japan, the United States
and the EU have led in policy development.169
Economic stimulus
measures enacted during the COVID-19 pandemic included
electric vehicle development as a way to create jobs and
decarbonise the transport sector.170
In 2021, policies supporting the electrification of road transport
through the use of electric vehicles continued to garner increased
policy attention.171
(p See Figure 22.) Electric vehicle support
policies include targets, financial incentives, public procurement,
funding for charging infrastructure, free parking and preferred
access. Targets and financial incentives were the most common
forms of electric vehicle policies implemented during the year. For
example, Indonesia announced that all motorcycles sold starting
in 2040 will be electric-powered, while all new cars sold from
2050 will be electric vehicles.172
In the United States, President
Biden signed an executive order targeting half of new cars to be
electric or plug-in hybrids by 2030.173
Singapore plans to double
its number of electric vehicle charging points by 2030.174
Several national and sub-national jurisdictions provided new
financial incentives for the purchase of electric vehicles in 2021.
At the sub-national level, Nova Scotia (Canada) began offering
rebates of up to CAD 3,000 (USD 2,347) for new electric
vehicles, CAD 2,000 (USD 1,564) for used vehicles and CAD 500
(USD 391) for e-bikes (with a total budget of USD 9.5 million
available).175
These provincial rebates are in addition to federal
rebates of up to USD 5,000.176
In New South Wales (Australia), an
AUD 490 million (USD 356) support package for electric vehicles
was passed that includes a stamp duty waiver and a rebate
programme.177
India’s state of Gujarat offers a subsidy for electric
cars and support for charging infrastructure.178
Most electric vehicle policies continued to lack a direct link to
renewable electricity, although Mauritius adopted a policy with a
direct link to the use of renewables.179
(p See Snapshot: Mauritius.) In
jurisdictions with high shares of grid-connected renewable electricity,
electric vehicle policies can support renewables in the road transport
sector even if these are not directly linked in the same policy.
i Electric vehicles are defined as battery electric vehicles and plug-in hybrids.
95

Note: All colour-coded areas of the map have electric vehicle targets or targeted bans on internal combustion engine vehicles. ICE = internal combustion engine;
EV = electric vehicle; HEV = hybrid electric vehicle. 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. The European Union has a renewable target of 57% for all member states. EV targets
vary; for details, see Reference Table R10 in the GSR 2022 Data Pack. In addition, over 100 cities have EV targets, see Renewables in Cities chapter.
Source: see endnote 171 for this chapter
FIGURE 22.
Targets for Renewable Power and Electric Vehicles, as of End-2021
Level of national/sub-national
renewable power share targeted
for jurisdictions with EV targets
1-30%
31-60%
61-90%
91-100%
Sub-national renewable power target
New EV target in 2021
No renewable power target
100% electric vehicle target or targeted ban
on internal combustion engine vehicles
Only
9 countries
with electric vehicle
targets also had a 100%
renewable power target.
96

POLICY
LANDSCAPE
02
RAIL, AVIATION, SHIPPING AND PORTS
Policies supporting renewablesintherailsector generally focus
on electrification, although they remained scarce in 2021. Only
two countries enacted new policies to advance the electrification
of rail during the year.180
Romania allocated EUR 3.9 billion
(USD 5.3 billion) for rail modernisation, which includes funds to
support the purchase of electric locomotives; the country also
aims to phase out coalfired generation by 2032.181
A UK plan to
electrify around 21 kilometres of rail lines received GBP 78 million
(USD 105 million) in government funding, although this was not
tied directly to renewable electricity.182
Policies to stimulate production of and demand for renewable
fuels in aviation remained scarce and have lagged behind
technological advances.183
By the end of 2021, only three countries
(Finland, Indonesia and Sweden) had biofuel targets for the aviation
sector; meanwhile, Germany issued a new target for sustainable
PtL kerosenei
(created from electricity) to comprise one-third of the
fuel used in domestic flights by 2030.184
Also during the year, the
United Kingdom announced a goal to achieve net zero emissions
in its aviation industry by 2050 (through the use of more efficient
planes that operate with synthetic fuels or have electric motors,
combined with carbon offsetting), and Portugal implemented
carbon fees for consumers travelling by air and sea.185
The United States
announced USD 65 million
in funding for projects
focused on producing
costeffective, low-carbon
biofuels to replace petro
leum fuels used in heavy-
duty transport, such as
airplanes and ships.186
The
country also published an
Aviation Climate Action
Plan, which describes the
government’s approach to achieving net zero emissions in the
sector by 2050; the plan includes, among others, the production
and use of sustainable aviation fuels (SAF) and the use of
electrification and potentially hydrogen for short-haul aviation.187
In the areas of shipping and ports, no jurisdictions adopted
new targets or policies to advance the use of renewables
during 2021. However, the EU announced that it would
consider including shipping in the EU Emission Trading
System’s carbon market, to be implemented between 2023
and 2025.188
SNAPSHOT. MAURITIUS
EV Charging Using Solar PV
In late 2021, the state-owned electric utility of Mauritius
initiated a policy to incentivise the deployment of 20 MW
of household and commercial solar PV systems for
charging EVs. Customers accepted to the programme will
be permitted to install the solar systems to power their
vehicles, and eligible customers will be able to deduct
the full cost of the system from their income tax. Any
excess electricity generated by the solar PV systems will
be exported to the grid and bought by the utility under a
gross metering approach. This programme is part of the
country’s goal to reach 35% renewable electricity by 2025
and 60% by 2030.
i Similar to renewable hydrogen, PtL kerosene is created from water, CO2 and electricity. If the electricity is generated by renewable sources, PtL kerosene is
considered a renewable fuel.
Policies to stimulate
production of and
demand for renewable
fuels in aviation
remained scarce and
have lagged behind
technological advances.
97

INDUSTRY
Industrial processes require the direct use of electricity and/
or thermal energy to meet various needs and are responsible
for more than a quarter of global final energy consumption.189
Historically, the industrial sector has received far less policy
attention than other end-use sectors, a trend that continued
in 2021. Only a few countries developed new or updated their
renewable energy policies for industry in 2021, bringing the
year-end total to 30 countries.190
(p See Reference Table R11 in
GSR 2022 Data Pack.)
As in previous years, financial incentives remained the most
common policy support for renewable heat in industry. During
2021, a few European countries implemented such policies:
Austria launched a grant scheme for large solar thermal plants
for industry, and Spain implemented a grant programme for
thermal renewables in industrial processes.191
In late 2021,
the first call for renewable heat projects for the industry and
service sectors in Spain resulted in awarded grants of EUR
108 million (USD 122 million) to support the financing of 51
solar heat projects with a total capacity of 62 MW.192
In early
2022, the Netherlands’ Renewable Energy Transition Incentive
Scheme (SDE++) committed EUR 13 billion (USD 15 billion)
for renewable heat (geothermal, biomass and solar thermal),
low-carbon heat (including heat pumps), and renewable gas,
as well as carbon capture and storage.193
RENEWABLE HYDROGEN
Renewable hydrogen is an energy carrier produced through
renewable-driven electrolysis or gasification using renewable
feedstocks. It can be used to increase the penetration of
renewables beyond the power sector, including in sectors that
are hard to decarbonise, such as high-temperature applications
in industry, shipping and aviation.194
However, nearly all hydrogen
today is manufactured using fossil fuels.195
Several countries announced policies to support hydrogen
in 2021, and at least 38 countries plus the EU had a hydrogen
roadmap or strategy in place by year’s end, mostly in Europe,
but also several in sub-Saharan Africa and Latin America.196
(p See Figure 23.) An analysis of existing roadmaps shows that
most were aimed at scaling up renewable-based hydrogen
production.197
Most hydrogen roadmaps do not focus exclusively
on the industrial sector, although several refer to the use of
hydrogen in high-temperature industries.
Note: Type of hydrogen (renewable, mixed, fossil fuel based) is unknown for Austria and Singapore.
Source: REN21 Policy Database. See endnote 196 for this chapter.
FIGURE 23.
Hydrogen Roadmaps in Selected Countries, as of End-2021
Strategy announced
in 2021/early 2022
+ EU renewable
hydrogen target
Fossil fuel based
hydrogen or N/A
Mixed hydrogen
Renewable hydrogen
98

POLICY
LANDSCAPE
02
Several countries made policy announcements related to
renewables and hydrogen (although not necessarily committing
to renewable hydrogen). Saudi Arabia and Oman announced
that they would build hydrogen electrolysis plants relying entirely
on renewable electricity.198
Uzbekistan established a strategy to
boost the production of renewable hydrogen, including support
for the deployment of new renewable power capacity.199
In Europe, Spain committed EUR 1.5 billion (USD 1.7 billion) in
funding for facilities to develop renewable hydrogen production
over a three-year period, and Germany committed EUR 8 billion
(USD 9.1 billion) for 62 hydrogen production projects, of which
around EUR 2 billion (USD 2.3 billion) will go towards integration
into the steel sector.200
Portugal committed to installing 2-2.5
GW of new renewable power capacity for hydrogen production
and to building 50-100 hydrogen fuelling stations by 2030.201
At the state level, New South Wales (Australia) announced
a renewable hydrogen strategy that includes AUD 3 billion
(USD 2.2 billion) in financial incentives for renewable hydrogen
production.202
AGRICULTURE
Large-scale agriculture is a major consumer of electricity and
heat. Energy is used for livestock feed, irrigation, greenhouses,
fertilisation, water pumping, processing and transport, among
others.203
Around 30% of the world’s energy is consumed within
agri-food systems.204
Several countries have proposed specific
policies to support the scale-up of renewables in agriculture, and
in 2021 at least five national policies and one sub-national policy
of this kind emerged. 205
(p See Snapshot: Philippines.)
Japan released new guidelines to develop and build ground-
mounted agrivoltaici
facilities, and Israel committed ILS 3.5 million
(USD 1.2 million) for studies examining how to combine agriculture
and solar power generation.206
In India, the state-owned electricity
company of Maharashtra solicited bids to develop 1.3 GW of
ground-mounted solar capacity for agricultural operations and
will enter into 25-year power purchase agreements with the
successful developers.207
Portugal launched a EUR 10 million
(USD 11.3 million) call for innovative solar PV projects built in
combination with agricultural activities.208
Several
countries have
proposed specific policies
to support the scale-up
of renewables in
agriculture.
99

Using Wind Power to Produce Hydrogen for Export
In 2021, the Australian company Fortescue Future Industries, a subsidiary of Fortescue
Metals Group Ltd., announced that it would develop one of its five largest green hydrogen
projects in Sierra Grande, a former mining town in eastern Argentina’s Río Negro province.
The company plans to install the project, powered by 2 GW of new onshore wind power
capacity, along the Patagonian steppe, investing USD 8.4 billion. The region has outstanding
wind resources but lacks a power grid and adequate road infrastructure.
The ongoing wind resource assessment, started in 2021, will allow the pilot phase of
the project to kick off in 2022 with an investment of USD 1.2 billion and the production
of 35,000 tonnes of hydrogen by 2024. A first production phase will follow, involving a
USD 7.2 billion investment and generating around 215,000 tonnes of hydrogen until 2028.
The project is expected to create around 15,000 direct jobs when fully operational and to
bring local development to the region, which closed its last iron mine in 2016.
Near the existing San Antonio port, dedicated mainly to fruit and fish exports, Fortescue will
build a seawater desalination plant and a port focused exclusively on the export of hydrogen
to countries using hydrogen to fuel vehicles and engines. By 2030, the project is expected to
produce 2.2 million tonnes of green hydrogen for export. Argentina’s Ministry of Productive
Development is working to establish a regulatory framework – including a tax-free zone – to
underpin the viability of green hydrogen. Fortescue also announced several collaborations
during 2021 to produce green hydrogen and green ammonia in Brazil, Canada, Indonesia,
Jordan and Papua New Guinea.
Source: See endnote 151 in the wind section for this chapter.
SNAPSHOT. ARGENTINA
03

i 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.
ii Modern bioenergy is any production and use of bioenergy that is not classified as “traditional use of biomass”
.
03
Bioenergy involves the use of many different biological
materials for energy purposes, including residues
from agriculture and forestry, solid and liquid organic
wastes (including municipal solid waste and sewage), and crops
grown especially for energy.1
Use of these feedstocks can reduce
greenhouse gas emissions by providing substitutes for fossil
fuels when providing heat for buildings and industrial processes,
fuelling transport and generating electricity.2
Coupled with
carbon capture and use/storage, bioenergy can lead to additional
emission reductions and even negative emissions.3
When sustainable, the production and use of bioenergy can help
promote energy security and price stability while delivering social
and economic benefits that support the achievement of the United
Nations Sustainable Development Goals, including stimulating
rural economic activity.4
However bioenergy can pose sustainability
risks if projects are not managed carefully, and strong governance
frameworks are essential to ensure positive outcomes.5
Other
barriers to bioenergy deployment include its relatively high costs,
as well as challenges related to market access.6
Bioenergy use worldwide totalled an estimated 44 exajoules (EJ)
in 2020 (latest available data), or around 12.3% of global total final
energy consumption (TFEC).7
(p See Figure 24.) More than half of
this (24.1 EJ) was the traditional use of biomassi
for cooking and
heating in developing and emerging economies (6.7% of TFEC).8
Other, more modern and efficient uses of bioenergyii
provided
an estimated 20.3 EJ or 5.6% of TFEC.9
Overall, bioenergy
represented around 47% of the estimated renewable energy use
in global TFEC in 2020, down from 54% in 2010.10
MARKET AND
INDUSTRY TRENDS
 Modern bioenergy provided 5.6% of
total global final energy demand in 2020,
accounting for 47% of all renewable energy
in final energy consumption.
 In 2020, modern bioenergy provided
14.7 exajoules (EJ) for heating, or 7.6% of
global requirements; two-thirds of this
was used in industry and agriculture and
the rest in buildings.
 In 2021, global biofuel production recovered
to 2019 levels at around 4.1 EJ. Overall biofuel
production has increased 56% since 2011,
with rising shares of biodiesel and rapid
growth in hydrotreated vegetable oil (HVO)
which grew 36% in 2021 to 0.33 EJ.
 Bioelectricity production grew 10% in
2021, dominated by China. Generation
has increased 88% since 2011, driven by
growth in China and some other Asian and
European producers.
KEY FACTS
03
BIOENERGY
101

87.7%
Non-biomass
5.6%
6.7%
Modern
bioenergy
Non-
bioenergy
Traditional
biomass
Modern
bioenergy
3.5
10.0
2.4
Electricity
Heat,
buildings
Heat,
industry
Transport
100%
75%
50%
25%
0%
5.2
25.6
Electricity
0.5%
1.3% 1.0%
2.7%
Heat, industry
Heat,
buildings
Transport
Traditional
biomass
Modern bioenergy for heating in buildings and industry provided
around 14.7 EJ in 2020 (7.6% of the global energy use for heating).11
Transport use amounted to 3.7 EJ (3.5% of transport energy
needs).12
Bioenergy also provided 1.8 EJ to the global electricity
supply (2.4% of the total).13
BIO-HEAT MARKETS
The traditional use of bioenergy – which involves burning
biomass in simple and inefficient fires or stoves – has fallen 8%
since 2011 to an estimated 24.1 EJ in 2020.14
(p See Distributed
Renewables chapter.) To reduce the impacts of unsustainable
harvesting of biomass and to avoid the severe impacts on air
quality and public health, a major international effort is under way
to transition from traditional bioenergy use towards clean cooking
solutions for all.15
Options include liquefied petroleum gas (LPG,
although this is less compatible with long-term climate ambitions)
as well as solutions based on renewable electricity and cleaner
biomass, such as ethanol fuels and wood briquettes and pellets.16
Modern bioenergy can supply heat for industry and buildings,
using systems such as stoves and boilers that are designed to
be much more efficient than open fires and that can achieve low
emission levels. Biomass fuels can be used directly to produce
heat, or, alternatively, bio-heat can be produced and distributed to
consumers – including through the co-generation of electricity and
heat using combined heat and power (CHP) systems and through
the use of district heating networks to reach final consumers.
Most of the biomass
used for heating is wood
fuel, although liquid
and gaseous biofuels
also are used, including
biomethane, which can
be injected into natural
gas distribution systems.17
(p See Box 7.)
Source: Based on IEA data. See endnote 7 for this section.
Note: Data should not be compared with previous years because of revisions due to adjusted data or methodology. Totals may not add up due to rounding.
Buildings and industry categories include bioenergy supplied by district energy networks.
FIGURE 24.
Estimated Shares of Bioenergy in Total Final Energy Consumption, Overall and by End-Use Sector, 2020
The traditional use of
bioenergy – which involves
burning biomass in simple
and inefficient fires or
stoves – has fallen
8%
since 2011.
102

MARKET
AND
INDUSTRY
TRENDS
03
Between 2010 and 2020, modern bioenergy use in buildings
increased an estimated 7% to 4.9 EJ, providing 5.2% of the
world’s building heat in 2020.18
The demand for heat in buildings,
and for biomass to heat them, was not greatly affected by the
COVID-19 pandemic during that year.19
The major markets are in
Europe and North America.20
The use of biomass for heat production in industry occurs
primarily in bio-based industries and agriculture, such as paper
and board, sugar and other food products, and wood-based
industries. These industries often use their wastes and residues
to generate energy: for example, sugarcane bagasse is used to
produce electricity and heat for sugar processing. Between 2015
and 2020, the use of bioenergy for industrial heat increased 8%
to 9.9 EJ.21
Bioenergy use for industrial heating is concentrated in countries
with large bio-based industries, such as Brazil, China, India
and the United States. This production (and use) also is linked
to the level of industrial production, although bio-heat use in
industry remained stable in 2020 despite overall reductions in the
production of paper products and sugar-based ethanol (where
bagasse is used to produce heat and power).22
Bioenergy’s contribution to heating in industry and buildings in
2020 included some 0.7 EJ provided through district heating
systems.23
This sector has expanded rapidly, up nearly 70%
since 2015, especially in Europe.24
The use of district heat was
split nearly evenly between buildings (49%) and industrial and
agricultural uses (51%).25
In general, the use of biomass for heating, like other renewable
sources, receives insufficient policy attention. However, the
European Union (EU) has promoted the uptake of renewable
heat alternatives to meet the requirements of the EU Renewable
Energy Directive (RED).26
The policy measures include capital
grants for biomass heating systems, taxes and duties on fossil
fuels (including carbon taxes) and, increasingly, constraints on
the use of oil and gas for heating.27
In part because of these
measures, between 2015 and 2020 the use of bio-heat in the
EU-27 grew 10% to 3.7 EJ (p see Figure 25) and increased from
17.6% to 19.5% of regional heat demand.28
The direct use of
biomass for heat in the EU-27 rose 8%, while bioenergy use in
district heating systems grew 18% to 0.64 EJ.29
BOX 7. Biogas and Biomethane
Biogas – a mixture of methane, carbon dioxide (CO2) and
other gases – is produced by anaerobic digestion, a biological
process that occurs when organic materials ferment in
the absence of oxygen. The same process occurs in waste
landfills, and the resulting landfill gas can be collected and
used, providing energy while also reducing emissions from
the landfill site. The gases can be used directly for heating or
power generation. Alternatively, the methane component can
be separated and compressed (forming biomethane) and
used to replace fossil gas by injecting it into gas pipelines or
for transport purposes.
Around 80% of the biogas produced worldwide is used
for power generation, split roughly equally between power
generation alone and co-generation, often stimulated by
favourable feed-in tariffs and other support mechanisms.
The remaining biogas is used for heating, transport and other
applications. Biomethane production totalled an estimated
1.4 EJ in 2020, or just over 1% of total global fossil gas demand
Production of biomethane has grown rapidly, doubling
between 2015 and 2019 to 140 PJ, with more than 1,000
biomethane production plants now in operation. The United
States is the largest producing country, stimulated by the
national Renewable Fuel Standard (RFS) and by California’s
Low Carbon Fuel Standard (LCFS). Production also has
grown in Europe, where policy priorities determine the use
of biomethane. Where extensive natural gas networks exist,
it often is used to replace pipeline fossil gas: for example,
the UK’s Green Gas Support Scheme encourages pipeline
injection of biomethane. In Sweden, where gas distribution is
less common, transport use of biomethane dominates.
In developing economies, biogas has been used at a small
scale as a sustainable fuel source for cooking, heating and
electricity production and to improve energy access. (p See
Global Overview chapter.).
Source: See endnote 17 for this section.
103

Bioenergy in heat supply (exajoules) Share of bioenergy in total heat supply
Share of bioenergy
in total heat supply
Bioenergy in
district heating
Direct use
of bioenergy
0
2
4
1
3
16%
18%
20%
17%
19%
2017
2016
2015 2018 2019 2020
In 2020, Germany, France and Sweden were the top EU countries
for bio-heat use.30
Poland became the fourth largest user, with its
bio-heat use rising 62% between 2010 and 2020, notably for district
heating.31
Italy was the EU’s fifth largest bio-heat user as well as the
world’s largest user of wood pellets.32
Together, these five countries
accounted for 55% of the EU’s bio-heat demand in 2020.33
More than 90% of the biomass used for heating in the EU-27 in
2020 was in solid form such as wood logs, chips and pellets.34
The
use of wood pellets in the EU more than doubled between 2010
and 2020 to 294 petajoules (PJ) (16.4 million tonnes).35
(p See
Box 8.) Municipal solid waste provided around 5% of the bio-heat
supplied and is an important contributor to EU district heating
schemes; its use in district heating increased 45% between
2010 and 2015, and it supplied just over one-fifth (21%) of the
EU’s district heat in 2020.36
The use of biogas and biomethane
for heating in the EU-27 grew 45% between 2010 and 2015, and
these sources provided 5% of the region’s biomass heating in
2020.37
In Denmark, biomethane provided nearly one-quarter of
all gas used in 2021, up sharply from 2020.38
North America is the second leading user of modern bioenergy
for heating, but demand fell around 10% between 2015 and
2020 in the absence of strong policy measures and due to the
relatively low costs of oil and natural gas.39
Bioenergy use for
heating in industry also declined during this period, down 9%
to 2.1 EJ.40
Demand for bio-heat in the US residential sector
fell 11% to 0.4 EJ.41
The number of people in the United States
relying primarily on wood fuels dropped from 2.5 million to below
1.8 million.42
Biomass use in the US commercial sector fell 3%
during 2015-2020 to reach 0.14 EJ.43
TRANSPORT BIOFUEL MARKETS
Current production and use of biofuels for transport are
based on ethanol (produced mainly from corn, sugar cane
and cereals), FAME (fatty acid methyl ester) biodiesel and,
increasingly, HVO (hydrogenated vegetable oil) or HEFA
(hydroprocessed esters and fatty acids), also called renewable
diesel.44
In addition, biomethane is used in transport. Although
most biofuels today are used in road transport, the industry
is developing and commercialising new biofuels designed to
serve new markets, notably in aviation.45
Biofuels can provide a renewable alternative to fossil fuels.
They typically can be used in vehicles designed for fossil fuels,
either as blends with petrol and diesel fuels, or with relatively
minor engine modifications. The main barriers to widespread
biofuel uptake include higher costs than conventional fuels,
limited availability of certain feedstocks and the need to
carefully manage the sustainability risks.
Between 2011 and 2021, the production of transport biofuels
grew 56% (in energy terms), from 2.6 EJ to 4.1 EJ.46
(p See
Figure 26.) Biofuel production fell sharply in 2020 as the
COVID-19 pandemic led to reduced transport energy demand
and restricted blending; however, production recovered
in 2021 to levels near those of 2019, although growth was
constrained by very high feedstock costs.47
Since 2011, the
share of biodiesel in the biofuel mix has grown from 29% to
37%, due largely to rising production in Asia.48
Production and
use of HVO have grown strongly from low levels in 2011 to 9%
of the total in 2021.49
Source: Based on Eurostat data. See endnote 28 for this section.
FIGURE 25.
Bioenergy Use for Heating in the EU-27, 2015-2020
104

Energy content (exajoules)
HVO/HEFA
Biodiesel (FAME)
Ethanol
0
2
4
1
3
2016
2015
2014
2013
2012
2011 2017 2018 2019 2020 2021
MARKET
AND
INDUSTRY
TRENDS
03
BOX 8. Biomass Pellets
Between 2015 and 2020, the annual global production of
wood pellets increased from 27 million tonnes to 41 million
tonnes (0.51 EJ to O.78 EJ). The EU was the largest regional
producer in 2020 with 18 million tonnes (45% of global
production), while other European countries provided nearly
5 million tonnes (12%). North America produced some
12.5 million tonnes in 2020, up from 9.5 million tonnes in 2015.
Despite the COVID-19 pandemic, global pellet production
grew 5% between 2019 and 2020.
In 2020, 22 million tonnes of wood pellets were used
worldwide to provide heat in the residential and commercial
sectors, with the market growing by 0.3 million tonnes
between 2019 and 2020. Pellet use for power generation,
CHP production and other industrial purposes increased
more than 10% to 20 million tonnes in 2020, mainly because
of a sharp rise in imports to Japan. The United States was the
world’s largest exporter of wood pellets in 2020; exports rose
1% to 6.8 million tonnes, even though US pellet production
fell 2% to 9.3 million tonnes.
Debate continues regarding the carbon savings and other
environmental impacts associated with pellet production from
forestry materials and their use in power generation. Starting
in 2020, the EU’s RED set tighter sustainability criteria for
the use of solid biomass, and starting in 2021 it set minimum
greenhouse gas reduction thresholds for new projects
seeking national support. Japan is enacting sustainability
criteria aimed at reducing the use of palm-based products
but increasing the use of certified wood pellets.
FIGURE 26.
Global Production of Ethanol, Biodiesel and HVO/HEFA Fuel, by Energy Content, 2011-2021
105

i According to the International Civil Aviation Organization, sustainable aviation fuels are produced from three families of bio-feedstock: the family of oils and
fats (or triglycerides), the family of sugars and the family of lignocellulosic feedstock.
Ethanol remains the leading source of transport biofuels.
Production increased 26% overall between 2011 and 2021 to 2.3 EJ
(105 billion litres), although it declined in 2020 precipitated by the
pandemicrelated drop in global petrol use for road transport.50
The United States and Brazil remain the dominant ethanol
producers, together accounting for 80% of global production
in 2021.51
The United States produced 54% of the global supply,
principally from corn, while Brazil produced 29%, mainly from
sugar cane but with growing levels from corn.52
Since 2010,
China has been the third largest ethanol producer, providing 3%
of the global supply (70 PJ or 3.3 billion litres) in 2021, followed
by India, where production and use increased nine-fold during
this period to 68 PJ (3.2 billion litres), to represent nearly 3% of
global supply.53
This reflects India’s national initiative to reduce
its import dependence by increasing the ethanol blend in petrol
to 20% by 2025.54
Global production of biodiesel nearly doubled between 2011 and
2021 to 1.5 EJ (45 billion litres).55
Biodiesel production is more
widely distributed than that of ethanol, due to the wider range of
feedstocks that can be processed, including vegetable oils from
palm, soya, and rapeseed, and a variety of wastes and residues,
including used cooking oil.
Biodiesel production in Asia has grown rapidly. Indonesia is now
the world’s biodiesel leader, increasing production 11-fold since
2011 to more than 8 billion litres in 2021, or 18% of the global total.56
In an effort to reduce its dependence on imported oil, Indonesia
raised its biodiesel blending target from 20% to 30% in January
2020 and was aiming for a 40% target in 2021.57
However, this
step-up was pushed to 2022 because of high feedstock costs.58
By using domestically produced biodiesel, Indonesia was able to
reduce its oil import costs by a reported USD 4.0 billion in 2021.59
Brazil is the world’s second largest biodiesel producer, with
production rising by a factor of 2.5 since 2011 to 6.8 billion litres
in 2021.60
Production has been stimulated by a rising domestic
blending level, slated to reach 13% in 2021 and 15% by 2023.61
However, in 2021 the blending limit was reduced from 12% to 10%
because of high soya prices, which raised the cost of biodiesel
and reduced demand.62
US biodiesel production grew 70% between 2011 and 2021,
boosted by the federal Renewable Fuel Standard (RFS2), by
California’s LCFS and by the re-introduction of the federal
Biodiesel Blender’s Tax Credit.63
US biodiesel production was
constrained in 2019 by the pandemic-related drop in transport
demand.64
While production (and sales) of biodiesel recovered
partially in 2020, they fell again in 2021 due largely to the high
cost of soya oil, which rose by a factor of three during the year
and rendered manufacture financially unattractive.65
The production of HVO, produced by hydrogenating bio-based
oils fats and greases, has grown rapidly from very low levels in
2011 to an estimated 9.5 billion litres in 2021, a 36% increase from
2020.66
Capacity continues to rise quickly, with investments in
stand-alone plants, but also with several oil companies, including
TotalEnergies, Phillips, ENI, Marathon, converting refineries to
HVO processes.67
While
early production capacity
was concentrated in
Finland, the Netherlands,
and Singapore, more
recently production has
surged in the United
States, driven by a strong
domestic market heavily
incentivised by the RFS2,
by California’s LCFS and
by the availability of an
investment tax credit.68
The use of biofuels as an aviation fuel has become a focus of
policy attention. Switching to sustainable aviation fueli
(SAF) is a
key pillar of aviation industry commitments to reduce emissions
from the sector, and increasingly of regional and national policy.69
The EU introduced its REFuelEU Aviation package as part of its
Fit for 55 initiative, which targets 2% SAF use for all flights taking
off from within the EU by 2025, rising to 63% by 2050.70
In the
United States, the Sustainable Aviation Challenge sets a goal for
the aviation industry to use 11 billion litres of SAF by 2030.71
The
country is proposing a tax credit for SAF and is considering post-
2022 targets for SAF in the federal Renewable Fuel Standard.72
Although many trials of SAF based on biofuels have been
carried out, the share of SAF in all aviation fuel has remained
tiny (below 1%).73
However, production has increased rapidly,
from a very low level in 2015 to an estimated 80 PJ (255 million
litres) in 2021.74
Production is concentrated in Europe, the United
States and China.75
Fuels used in aviation must meet strict standards set by ASTM.
So far, eight production routes have been approved.76
These
are all based on fuels produced from vegetable oils and fats
by hydrogenation, using processes similar to those for HVO
production but tuned to optimise the jet fuel fraction. While
sufficient feedstock sources exist to meet short-term targets,
production and use are likely to be limited by the availability of
suitable and sustainable feedstocks. Other technology options
include the gasification of solid biomass feedstocks (such as wood
and crop residues) and conversion to jet fuels via the Fischer-
Tropsch process and the conversion of ethanol to biojet fuel.77
Biomethane is used as a transport fuel mainly in the United
States (the largest producer and user of biomethane for transport)
and in Europe.78
US production and use are incentivised by the
RFS2 (which includes biomethane in the advanced cellulosic
biofuels category) and by California’s LCFS.79
Under the RFS2,
US biomethane use has increased 10-fold since 2014 (when the
fuel was introduced into the standard), reaching 41 PJ in 2021.80
In Europe, transport use of biomethane increased around 30%
between 2015 and 2020, to 12 PJ.81
Global production
of biodiesel
nearly doubled
between 2011 and 2021 to
1.5 EJ.
106

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Asia excluding China
North America
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2017 2018 2020 2021
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BIO-POWER MARKETS
Many biomass feedstocks can be used to produce electricity.
Around 82% of bioelectricity is produced from solid feedstocks
such as wood and forestry products (including wood pellets),
agricultural residues (notably sugarcane bagasse, used for 10%
of global generation) and municipal solid waste (12%).82
These
fuels are combusted, and the heat is used to drive steam turbines
to produce electricity. Where possible the overall efficiency can
be increased by using CHP systems with the heat used on site
(for example, in industry) or transported for use elsewhere in
district heating systems or sold for use as process heat by other
companies.83
In 2019, 16% of all bioelectricity was produced from
feedstocks converted to biogas or biomethane (p see Box 7) and
around 1% from liquid biofuels.84
Global bio-power capacity and generation both increased
significantly during 2011-2021 and were not impacted greatly by
the pandemic in 2020, with generation protected by long-term
power purchase contracts.85
Global capacity more than doubled
during the period, reaching an estimated 158 gigawatts, while
global generation rose 88% to 656 terawatt-hours (TWh).86
(p See Figure 27.) Since 2017, China has been the top bio-power
producing country, followed (in 2021) by the United States, Brazil,
Germany, Japan, the United Kingdom and India.87
China was the fastest growing bio-power producer during 2011-2021,
with generation increasing by a factor of 4.5 from 32 TWh annually
to 146 TWh annually.88
This reflects mainly the strong growth
in power production from waste, driven by rising urbanisation,
the country’s 14th Five-Year Plan, and financial support for this
activity, totalling CNY 2.5 billion (USD 400 million) in 2021.89
Bio-power growth also was relatively rapid in the rest of Asia, with
generation rising by a factor of 2.4 during 2011-2021 to 138 TWh.90
Japan overtook India as the leading regional producer with 42 TWh
in 2021, up from 13 TWh in 2011.91
In India, bioelectricity production
grew from 19 TWh to 34 TWh over the period, and in the Republic
of Korea it increased more than 14-fold to 13 TWh, encouraged by
the Renewable Energy Certificate Scheme and feed-in tariffs.92
In
both Japan and the Republic of Korea, growth was due mostly to
increased use of imported pelletised fuels.93
Electricity generation
also grew significantly in Indonesia, Thailand and Vietnam.94
In Europe, bioelectricity generation grew 67% during 2011-
2021 to reach 221 TWh, mainly in the EU (stimulated by the EU
RED) and in the United Kingdom.95
Germany remained the top
regional producer, mainly from biogas, although recent growth
has been limited.96
In the United Kingdom, bio-power generation
rose three-fold during the period, due mostly to higher use of
imported wood pellets at the converted Drax power station and
to rising generation from municipal solid waste.97
Bioelectricity
provided 12.5% of UK electricity production (39.4 TWh) in 2021,
with increases in large-scale pelletfired generation, biogas
and municipal waste plants.98
Electricity generation in the
Netherlands increased to 11 TWh supported by the SDE feed-in
premium scheme and to help the country meet its obligations
under the EU RED.99
Generation also surged in Denmark,
Sweden and France.100
In the Americas, the United States remained the world’s second
largest bioelectricity producer with 60 TWh in 2021.101
However,
US generation fell 15% from its peak in 2015.102
In South America,
bio-power generation grew 11% between 2011 and 2021, led
by Brazil, which was the third largest global producer in 2021
(560 TWh), with generation doubling since 2011 (based mostly on
sugarcane bagasse).103
Generation remained stable in both Chile
(7 TWh) and Argentina (3 TWh) in 2021.104
Source: Based on IEA data. See endnote 86 for this section.
FIGURE 27.
Global Bioelectricity Generation, by Region, 2011-2021
107

i Sub-surface geothermal fluid undergoes flash evaporation to steam as
pressure drops ascending a wellbore and at the power plant.
ii This does not include the renewable final energy output of ground-source
heat pumps. (p See Heat Pumps section in Markets and Industry chapter.)
iii Net additions tend to be lower than the sum of new plants due to
decommissioning or de-rating of existing capacity.
3,000
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Rest of
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Added in 2021
2020 total
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Geothermal energy is harnessed by using the thermal
and pressure differentials in the Earth’s crust either
to supply thermal energy directly or to generate
electricity. For heat applications, geothermal fluid can be used
directly or via heat exchangers, where the fluid is re-injected into
the crust. For electricity generation, geothermal steami
is used
directly to drive turbines (either dry or flash steam), or, in the
case of binary-cycle plants, geothermal fluid is used to heat a
secondary working fluid that powers the turbine.
Geothermal electricity generation totalled an estimated 99 terawatt-
hours (TWh) in 2021, while direct useful thermal output totalled
an estimated 141 TWh (508 petajoules, PJ)ii
.1
In some instances,
geothermal plants produce both electricity and heat for thermal
applications (co-generation), but this option depends on location-
specific thermal demand coinciding with the geothermal resource.
GEOTHERMAL POWER
New geothermal power generating capacity of 0.3 gigawatts
(GW)iii
came online in 2021, bringing the global total to around
14.5 GW.2
This was more than double the additions in 2020 but
below the five-year average of 0.5 GW since 2016.3
Capacity was
added in Chile, Chinese Taipei, Iceland, Indonesia, New Zealand,
Turkey and the United States.4
(p See Figure 28.)
 New geothermal power generating capacity of
0.3 gigawatts (GW) came online in 2021, bringing
the global total to around 14.5 GW. This was more
than double the additions in 2020 but below the
five-year average of 0.5 GW since 2016.
 Geothermal power and heat development
is highly concentrated across a few countries
and typically is concentrated in key geographic
locations within countries.
 During 2016-2021, the top markets in reported
power capacity additions were Turkey (0.9 GW
added), Indonesia (0.7 GW), Kenya (0.2 GW)
and the United States (0.2 GW), followed by
Iceland, Chile, Japan, New Zealand, Costa Rica
and Mexico (all less than 0.1 GW each).
 In the most active markets (Turkey and
Indonesia), further development of geothermal
resources is contingent on government support
mechanisms; however, lower feed-in tariffs in
Turkey may be causing a slowdown.
 Geothermal heat (direct) use may have
increased nearly 10% in 2021, mostly in China.
The top countries for geothermal direct use
remain (in descending order) China, Turkey,
Iceland and Japan.
KEY FACTS
GEOTHERMAL POWER AND HEAT
FIGURE 28.
Geothermal Power Capacity and Additions, Top 10 Countries and Rest of World, 2021
108

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 de-rating. 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 6 for this section.
iii In a binary-cycle plant, which has become the most common design at plants built in recent years, 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.
Conversely, geothermal steam can be used directly to drive the turbine but this is more typical for high-entalpy applications.
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The top 10 countries for geothermal power capacity at the
end of 2021 were the United States, Indonesia, the Philippines,
Turkey, New Zealand, Mexico, Kenya, Italy, Iceland and Japan.5
However, capacity values are subject to high uncertainty due to
a lack of standardised reporting criteria. In some instances, the
effective geothermal generating capacity (achievable or running
capacity) may be lower than indicated values, due to gradual
degradation of the steam-generating capability of geothermal
fields or to insufficient drilling of make-upi
wells to replenish
steam flow over time.
For example, the effective netii
generation capacity in the United
States was 2.6 GW at the end of 2021, as resource depletion in
particular has limited the effective output far below the stated
gross nameplate capacity of 3.9 GW.6
In Mexico, resource
depletion has reduced the effective capacity at the country’s
largest geothermal field, Cerro Prieto, to around one-half of the
installed capacity of 0.7 GW, suggesting that the country’s total
reported running capacity of more than 0.9 GW is overstated.7
In
Japan, gradual degradation of steam output since the 1970s has
reduced the effective running capacity to around 0.3 GW, below
the stated nameplate capacity of more than 0.5 GW.8
Country rankings also do not reflect how active these markets have
been in recent years. The most active geothermal power markets
have been Turkey and Indonesia, while some other countries
(such as the Philippines) have seen little or no capacity additions
in recent years. During the 2016-2021 five-year period, the top 10
markets by reported capacity additions (new plant installations)
were Turkey (0.9 GW added), Indonesia (0.7 GW), Kenya (0.2 GW)
and the United States (0.2 GW), followed by Iceland, Chile, Japan,
New Zealand, Costa Rica and Mexico (all less than 0.1 GW).9
Turkey has been one of the most prolific geothermal power
markets over the last decade. However, following robust growth
during 2015-2019 (around 200-240 megawatts (MW) added
annually), annual capacity additions in the country declined from
99 MW in 2020 to a net 63 MW in 2021 – the smallest annual
increment since 2012.10
As in recent years, new installations completed in Turkey in 2021
were all relatively small (25 MW or less), including the first 3.2 MW
phase of Transmark’s 12 MW Mount Ida plant and the second
25 MW unit at the Efeler complex.11
Turkey continued to rank
fourth globally for total geothermal power capacity, at 1.7 GW.12
Geothermal’s share of the country’s power supply grew from 1.3%
in 2015 to 3.3% in 2020 as generation nearly tripled to 10 TWh.13
Past growth in Turkey’s geothermal energy development was
driven by the technology-specific feed-in tariff (FIT) in place
since 2011.14
This FIT was repealed in mid-2021 (following a six-
month pandemic-related reprieve), which encouraged some
project completions before the expiration date.15
A new FIT,
significantly lower than the previous one, abandoned the USD-
based structure in favour of the Turkish lira, both for the basic
tariff and for the local content increment.16
Turkey’s geothermal industry has attributed the slowing market
growth to detrimental changes in the FIT and suggests that
without stronger, long-term incentives the country’s remaining
geothermal power potential (estimated at 2 GW) will not be
realised.17
The current weakness of the Turkish lira is said to make
the foreign currency risk prohibitive to new investment, along
with the high cost of borrowing in the local currency, especially
with the FIT no longer pegged to the US dollar.18
In late 2021, the World Bank announced the approval of
two USD 300 million loans, supplementing its previous
USD 250 million in funding, to support geothermal development
in Turkey.19
The funds will be used to fund drilling and steam-
field development, in support of direct-use applications as well as
electricity generation.20
The United States maintains a commanding lead in installed
geothermal power capacity, although new capacity built has
averaged only 66 MW annually during 2011-2021.21
One 25 MW
project completed in 2021 helped keep the total net operating
capacity at 2.6 GW.22
The new capacity was the culmination of
the McGinness Hills expansion project, which used the most
advanced binary-cycleiii
technology at an existing facility in
the state of Nevada.23
Geothermal power in the United States
generated around 16.2 TWh in 2021, or less than 0.4% of US net
109

Indonesia completed two projects that had been delayed from
2020, when no capacity was added.25
By mid-2021, the 45 MW
Sorik Marapi Unit 2 on North Sumatra came online.26
On
South Sumatra, the 98 MW Rantau Dadap facility commenced
operation towards the end of the year.27
In addition, the 10 MW
Dieng unit advanced during the year and is said to be an example
of the small-scale renewable technology that Indonesia wishes
to emphasise for reasons of fast deployment and compatibility
with environmental imperatives and other economic activity,
such as tourism.28
Indonesia has seen relatively steady growth in geothermal
power capacity in recent years (except for pandemic-induced
delays in 2020), with average growth of around 150 MW
annually during the five-year period from 2016 to 2021, for a
total installed capacity of 2.3 GW.29
In 2020, geothermal power
supplied 15.6 TWh, or 5.3% of the country’s total generation.30
Geothermal power is relatively expensive in most locations,
due largely to the high risk inherent in the early stages of
exploratory drilling and field development. To alleviate some
of this risk, the Indonesian government began directly funding
exploratory drilling in 2021 in the hope of reducing upstream
risk, lowering investment thresholds and reducing overall
project development costs (and thus the final cost of energy).31
State-funded drilling started in September in a national park
on West Java, with two 2-kilometre deep boreholes planned in
an area with an estimated 45 MW potential.32
The government
estimates the incremental geothermal power capacity to cost
USD 4 million per MW, requiring more than USD 28 billion in
investment to meet the country’s 2035 target of 7.1 GW of new
geothermal capacity.33
New Zealand commissioned its first new geothermal
power project since 2018 with the completion of the 32 MW
Ngawha plant, following three years of construction.34
Most
of the country’s geothermal capacity (1.1 GW) was built before
2016, but only 57 MW has been added since.35
The need for
additional capacity has been curtailed in part by the decline in
industrial and commercial electricity demand over this period,
as geothermal generation has continued to account for around
18% of the country’s total electricity generation.36
A new 168 MW geothermal power plant is under development
near Taupō on New Zealand’s North Island, to be completed
by late 2023.37
The project’s geothermal field was found to
be more productive than initially expected, but the increase
in power capacity (up from 152 MW) was offset by higher
estimated project costs, rising more than 9% per unit of output,
to USD 4.9 million per MW.38
In Chile, the Cerro Pabellón plant was expanded in 2021
to 81 MW with a new 33 MW binary-cycle unit. The plant is
notable for being the first and only geothermal power plant in
South America and the highest-altitude plant of its kind, located
in the Atacama Desert at 4,500 metres above sea level.39
Chinese Taipei celebrated the completion of its first geothermal
plant in 2021. The 4.2 MW binary-cycle unit uses hot water
from depths of as much as 2 kilometres, at temperatures up to
180 degrees Celsius (°C).40
Geothermal power capacity in Iceland grew modestly in 2021
with six 150 kW binary-cycle power modules installed at two
locations, all implemented in conjunction with low/medium-
temperature (about 120°C) direct-use (district heating) systems.41
New geothermal power
generating capacity of
0.3 GW
was more than double
the additions in 2020 but
below the five-year average
of 0.5 GW since 2016.
110

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 Market and Industry chapter.)
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GEOTHERMAL HEAT
Worldwide, the capacity for geothermal direct usei
– direct
extraction of geothermal energy for thermal applications –
totalled an estimated 35 gigawatts-thermal (GWth) in 2021.42
The estimated 2021 annual capacity increase of 2.5 GWth is
based on reported values for 2019 and the preceding five-year
growth rate. By the same estimation, geothermal energy use for
thermal applications grew 12.8 TWh during 2021 to an estimated
141 TWh (508 PJ).43
The largest applications for geothermal heat are bathing and
swimming (44% of the total in 2019 and growing around 9%
annually) and space heating (39% in 2019, growing at 13%).44
The remaining 17% of direct use was allocated to greenhouse
heating (8.5%), industrial applications (3.9%), aquaculture (3.2%),
agricultural drying (0.8%), snow melting (0.6%) and other uses
(0.5%).45
(p See Snapshot: El Salvador.)
The top countries for geothermal direct use in 2021 were
(in descending order) China, Turkey, Iceland and Japan.46
(p See Figure 29.)
The global distribution of geothermal energy use for heating remains
uneven and sparse, with at least 75% concentrated among the top
four countries. Other countries, each estimated to represent less
than 2% of direct use, include (in descending order) New Zealand,
Hungary, the Russian Federation, Italy, the United States and Brazil.47
SNAPSHOT. EL SALVADOR
Geothermal Heat Use in Agriculture
Agricultural practices can require prolonged, high-
temperature heat to yield final food products. Globally,
communities and companies have been using the
by-product heat from nearby geothermal plants to help
improve processes for local producers. Because of its
proximity to the geothermally active Ring of Fire area,
Latin America has the potential for an estimated 70 GW
of geothermal energy.
In El Salvador, where 27% of electricity comes from
geothermal energy, the rural communities of Ahuachapán
and Berlin use waste heat to dry fruits, displacing fossil
fuel-intensive processes. Condensation from the nearby
geothermal power plant is used to water the plants
sold by the communities. In Costa Rica, the Ministry of
Environment and Energy has published a law related
to the direct use of geothermal resources, including in
agriculture.
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Geothermal heat use reflects local needs and priorities. In China,
around 46% was allocated to district heating in 2019 and 44%
went to bathing and swimming applications.48
In Iceland, 73% is
used for space heating, with swimming pools coming a distant
second at less than 10%.49
In Turkey, pools and baths consume
42%, while space heating absorbs less than 30%.50
In Japan,
more than 80% of direct use is believed to be associated with
bathing facilities located near geothermal springs.51
China’s use of geothermal heat was a reported 197 PJ in 2019
and may have exceeded 290 PJ in 2021 based on recent growth
trends, representing well over half of global use.52
In 2017,
China issued its first geothermal industry plan, which called for
rapid expansion of geothermal energy use, especially for heat
applications.53
The country’s 14th Five-Year Plan for energy
efficiency and green building development, issued in early 2022,
emphasises continued expansion of geothermal energy use for
space heating.54
China’s geothermal heat market is by far the
fastest growing globally, with consumption increasing more than
21% annually during 2015-2019.55
As of 2019, China had an estimated 14.2 GWth of installed
geothermal capacity for direct use (excluding heat pumps), with
7 GWth allocated to district heating, 5.7 GWth serving bathing and
swimming applications, and the rest used for food production
and other industry.56
Based on growth trends during 2015-2019,
installed capacity may have been close to 20 GWth by the end
of 2021.57
Unlike countries that use geothermal energy mostly
for electricity generation rather than for direct heat applications
(or both), China emphasises heat use, in part because most
domestic hydrothermal resources are of relatively low enthalpy
(with most reservoirs below 100°C).58
Growth among the other top users of geothermal heat (Turkey,
Iceland and Japan) has been far more moderate, at 3-4%
annually.59
In Turkey, reported geothermal heat use grew 3.9%
annually on average during 2015-2019 and may have reached
59 PJ in 2021.60
While total geothermal energy use in Turkey is
skewed towards thermal applications (15 TWh direct use and
10 TWh electricity), drilling activity and other investment in
recent years (before the change in the FIT in 2021) have strongly
favoured electricity generation.61
Iceland ranks third globally in the use of geothermal heat, but
modest growth in this mature market is defined largely by economic
and population growth.62
With around 2.5 GWth of capacity, the
country produces around 34 petajoules (PJ) of geothermal heat
annually, enough to cover more than 97% of overall thermal demand
FIGURE 29.
Geothermal Direct Use, Top 10 Countries and Rest of World, 2021
112

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and around 90% of
space heating demand.63
The total contribution of
geothermal energy to
space heating is even
greater since the balance is
met largely with electricity,
which is generated in part
from geothermal power
(31% of Iceland’s electricity
is geothermal).64
The high penetration of geothermal energy for thermal
applications in Iceland is made feasible in part because most
buildings are located near known and available geothermal
resources, specifically in the greater capital area in the more
geothermally productive southwest. At an existing heat and
power plant in the region, a new make-up borehole was
completed in 2021 with peak fluid temperature of 360°C.65
The
plant operators observed that the chemical make-up of such
hot geothermal fluid may be corrosive to plant equipment, but
normal acidity and high steam content was promising.66
Well outside the most geothermally active parts of Iceland, the
community of Höfn in the southeast completed a new district
heating system in 2021, after 30 years of searching for sufficiently
productive geothermal wells.67
After some 54 exploratory wells
were drilled, a final 5 production wells were completed at a
depth of 1.1 to 1.75 kilometres each, producing a sustainable
yield of 30-40 litres per second at 70-78°C.68
The system, which
received a critical state subsidy, displaced electric boilers that
used fuel oil as a back-up.69
In continental Europe, clusters of geothermal heat developments
can be found, and some continue to grow. Germany expanded
geothermal district heating at two facilities, both in Bavaria.
The Kirchstockach geothermal plant began distributing district
heat (12 megawatts-thermal, MWth) in addition to the facility’s
existing electricity generation (5.5 MWe).70
A new plant in the
town of Garching was completed in early 2021, supplying both
electricity (4.9 MWe) and district heat (6.9 MWth).71
Three geothermal heat projects were completed near Paris
(France). A plant serving the communities of Champs-sur-
Marne and Noisiel will provide 82% of the local district heat
supply, while new plants at Vélizy-Villacoublay and Drancy/
Bobigny will each raise the renewable energy share in local heat
networks above 60%.72
Vienna (Austria) hopes to tap a deep geothermal aquifer to
supply 125,000 households with heat by 2030.73
Extensive
surveys done since 2016 indicate a promising resource at
around 3,000 metres below the city (at temperatures up to
100°C), but exploratory boreholes are needed to confirm those
expectations, with further research planned in 2022.74
Despite favourable resource conditions, development of
geothermal energy in Hungary (which ranks sixth globally for
direct use) has not been robust in recent years.75
In an effort to
turn the tide, the Hungarian government initiated a programme
in 2021 to mitigate financial risk associated with geothermal
drilling, funded at the level of HUF 6 billion (USD 18 million).76
Global distribution of
geothermal energy use for
heating remains uneven
and sparse, with
at least 75%
concentrated in only
four countries.
113

Heat pumps are used to meet space and water
heating and cooling needs for residential, commercial
and industrial applications within a wide range of
temperatures.1
In general, they are highly efficient heating and
cooling devices, typically able to deliver 3-5 units of heat for every
unit of auxiliary energy input.2
However, heat pumps differ in
performance based on their inherent technical efficiencies, external
operating conditions and system designs.3
(p See Figure 30
and Box 9.)
The classification of heat pumps as a renewable energy technology
varies by location. Because groundsource heat pumps rely on
geothermal heat, they generally are defined in national legislation
as being renewable.4
In Japan, air-source heat pumps have been
recognised as renewable energy technologies since 2009.5
The
European Union (EU) also has considered, since 2009, the aero-
and hydro-thermal energy extracted by heat pumps as renewable,
provided that the final energy delivered greatly exceeds the external
energy required for heat pump operation.6
As of early 2022, China
did not recognise air-source heat pumps as a renewable energy
technology at the national level.7
In 2020, heat pumps met only around 7% of the global heating
demand in residential buildings, as fossil fuel-powered heaters
and water heaters still accounted for around half of the heating
equipment sold.8
However, this trend is changing, particularly
as heat pumps become more common in new buildings.9
In
the United States, heat pumps account for between 40% and
50% of heating equipment sales for newly constructed buildings,
depending on the building type.10
In Europe, more than 20% of
all heating devices sold in 2021 were heat pumps.11
On the Swiss
market, heat pumps are the most-sold heating technology, in
both new and existing buildings.12
 In 2020, heat pumps met only around 7%
of the global heating demand in residential
buildings, as fossil fuel-powered heaters and
water heaters still comprised around half of
the heating equipment sold. However, this
trend is changing as heat pumps become
more common in new buildings.
 Globally, air-source heat pumps continue
to dominate the market, with the top regions
being China, Japan, Europe and North
America. Ground-source heat pumps have the
second largest market share globally.
 Factors that have led governments
to integrate heat pumps into plans for
decarbonising heating in buildings include the
technology’s maturity and the ability to provide
additional flexibility in the electricity network
or heating system.
 Many countries are using financial support
and pricing measures to balance the price
of electricity relative to natural gas, which
improves the economic prospects for heat
pumps.
KEY FACTS
HEAT PUMPS
Heat pumps met
only around 7%
of the global heating demand
in residential buildings, as
fossil fuel-powered heaters
and water heaters still
accounted for around half of
the heating equipment sold.
114

1kWh
3kWh 4kWh
A C
B
Renewable energy
extracted
(e.g., ambient air,
water, waste heat, ground)
Heat pump D
End use
Renewable
electricity
Compression
Expansion
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BOX 9. Operational Principles of a Heat Pump
A
A heat pump extracts heat from an ambient heat source,
which can include heat from the air, water, and ground, as
well as different types of waste heat (such as from industrial
processes and sewage treatment). The heat is extracted
by evaporating a refrigerant, thus cooling the source.
B
During operation, the device uses an external source
of energy to transfer the ambient energy from a low-
temperature source to a higher-temperature sink by way
of a refrigeration cycle. This typically is achieved with an
electric compressor. When the energy used to drive a heat
pump is renewable, so is 100% of the energy delivered.
C
The most efficient systems, operating under optimal
conditions, can deliver 4.5 to 7 units of thermal energy
(either heating or cooling) for every 1 unit of external
energy consumed (especially in moderate climates (the
Mediterranean region, central and southern China). In
cold climates (Canada, northern China), low outside
temperatures can reduce the energy co-efficient of air-
source heat pumps over the winter season.

The difference between the energy delivered and the
external energy is considered the renewable portion of the
heat pump output, regardless of the external energy source.
D
The heat can then be used for:

residential and commercial space heating (through
heated air, radiators or underfloor heating; or applied in
district heating systems);

sanitary hot water production;

heat provision for industrial processes.
Heat pumps typically are reversible units that provide heating
as well as cooling functionsi
.
i Air conditioners can be considered heat pumps that provide only
cooling.
FIGURE 30.
Example of a Heat Pump with a Co-efficient of Performance of 4
115

Air-source heat
pump markets
grew on average
between 2011
and 2021.
Annual sales (million units)
0
25
30
15
20
5
10
2016
2015
2014
2013
2012
2011 2019 2020
2017 2018 2021
North America (115%)
Europe (138%)
China (60%)
Japan (13%)
4.6%
MARKET DEVELOPMENT BY HEAT PUMP TYPE
Heat pumps can be differentiated based on the combination of
their energy source (air, water or ground) and the heat distribution
system (air or water). Globally, air-source heat pumps continue to
dominate the market, with the top regions being China, Japan,
Europe and North America.13
(p See Figure 31.) In general,
comparisons across heat pump markets remain challenging
due to differences in data collection, the overall lack of data
availability, and the difficulty in distinguishing units used only for
cooling from those used for both heating and cooling.
In certain regions, growing demand for air conditioning could
boost the demand for reversible heat pumps that provide both
cooling and heating.14
In Europe, Japan, the Republic of Korea,
and the United States, reversible air-air heat pumps generally
are used for both space heating and cooling.15
In China, such
units are sold mainly in the north, although primarily for cooling
purposes, since more than 80% of the Chinese population relies
on district heating networks for their heat needs.16
Overall, the air-source heat pump market slowed in 2020 due
to the effects of the COVID-19 pandemic, as sales fell 3%
globally relative to 2019; however, air-source sales increased
in both Europe (up 7.4%) and North America (up 9.4%).17
In
China, air-source heat pump sales peaked in 2017 (attributed
to implementation of the Air Pollution Act, which boosted the
replacement of coal-based heating systems), whereas in Japan
air-source heat pumps have been a common offering for more
than 20 years and sales are relatively stable.18
US heat pump
sales have risen steadily and are growing faster than other
heating alternatives in the country.19
In Europe, heat pump sales experienced double-digit growth
during 2015-2019 due in part to the implementation of new
building thermal regulations in many countries.20
Since then, the
acceleration of heat pump uptake (up 25% for air-source heat
pumps and up 34% for total sales in 2021) can be attributed to the
rise in home renovations during the pandemic, and to the overall
positive perception of the technology by end-users.21
In 2021 (as in 2020), the top three European markets were France,
Italy, and Germany, with the latter experiencing 28% growth for
the year.22
(p See Snapshot: Germany.) Other countries showing
substantial market growth included Italy (up 64%), Poland (60%,
due mainly to regulations phasing out coal), France (36%) and
Switzerland (20%).23
The largest market penetration for heat
pumps in buildings is in the Nordic countries, in particular
Sweden, where more than one in two single-family homes has a
heat pump installed.24
Source: China total from ChinaIOL. Europe total from EHPA. See endnote 13 for this section.
Note: For China, data for 2011-2013 do not include air-water heat pumps.
FIGURE 31.
Air-Source Heat Pump Annual Sales, Selected Markets, 2011-2021
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SNAPSHOT. GERMANY
Rapid Growth in the Heat Pump Market
Germany’s heat pump market expanded considerably in 2020 – up 41% relative to 2019 – and
entered the European top three for the first time ever. This expansion continued in 2021, with the
market growing 28% for an annual total of 154,000 units sold. The German market is dominated
by air-to-water heat pumps (increasing from a 79% share in 2020 to 82% in 2021), followed by
ground-source heat pumps (18% in 2021).i
The federal government also has set a target of a
cumulative six million heat pumps to be installed by 2030 – six-times the stock of 2020.
The market has benefited from a succession of climate policies aimed at promoting more
sustainable heating systems. For example, Germany’s 2019 Climate Policy Package bans the use
of oil heating in new and existing buildings starting in 2026, and the 2020 National Energy and
Climate Plan sets a target for 27% renewable heating by 2030. In practice, the right conditions for
replacing oil with heat pumps in new buildings are set by a combination of energy performance
building regulations (the Energy Saving Ordinance, or EnEV) and an aggressive subsidy system,
supported through the government-funded Market Incentive Programme (MAP) and preferential
interest loans delivered through the KfW development bank.ii
Launched in 2000, the MAP provides low-interest loans or investment grants of up to 35% for
conversion to a renewable heating system if gas boilers are replaced and up to 45% if an oil heater
is replaced. Because the programme has significantly lowered the upfront costs of heat pump
installation, by 2016 around 23% of new homes in Germany were using a heat pump as their main
heating system, up from less than 1% in 2000. For existing buildings, the country requires replacing
all fossil fuel heating systems that are more than 30 years old; however, even though the MAP
grant is higher in such cases, these systems typically still are replaced with more efficient gas or
oil boilers. Germany’s national heat pump association estimates that nearly a quarter of the heat
pumps installed in 2020 replaced old oil-fired systems, amounting to some 30,000 units.
A barrier to greater uptake of heat pumps is the high price of electricity in Germany, among
the highest in Europe due to significant taxes and surcharges, amounting to 53% of the total bill
in 2020. A carbon tax, introduced in 2021, will be redirected towards green subsidies, helping
to reduce the gap between the electricity price and the price of natural gas or oil. In early 2022,
the government went a step further by announcing the removal of the renewable energy levy
(”EEG surcharge“) on electricity bills by 2023. in April 2022, the timeline was moved up in
response to the sharp rise in energy prices and the need for a secure heating supply, and the
EEG is now slated to be transferred to the federal budget as early as July 2022.
i
German statistics do not include reversible air-to-air heat pumps to avoid counting units used only for cooling.
ii
KfW supports businesses and municipalities using larger heating systems, while the MAP incentives are directed towards private consumers,
professionals, companies, municipalities and other eligible parties such as non-profit organisations.
Heat pumps for sanitary hot water production are used mainly
in China and Japan, where sales have tripled since 2010; in 2021,
more than 1.27 million units were sold in China, and 585,000
units were sold in Japan.25
France dominates the European
market for hot water uses, with 110,320 heat pump water heaters
sold in 2020.26
Ground-source heat pumps have the second largest market
share globally after air-source units.27
The United States remains
a prominent market, with more than 1.7 million units installed and
annual growth of around 3% in 2020.28
In Europe, around 100,000
ground-source units were sold in 2020, mainly in Sweden,
Germany, and the Netherlands, with the latter accounting for
more than half of total sales.29
117

i Ground-source heat pumps tend to be the most expensive, while air-air heat pumps are generally more affordable. In the case of renovation work, considering
that many heat pumps are designed to deliver heat at relatively low temperatures (35-60 degrees Celsius, °C) compared to a conventional fossil fuel boiler
(which supplies heat of around 60-80°C), additional costs often occur to improve the insulation of the building and to replace or adapt the existing heat
distribution system. In practice, this is realised by increasing the size of the heat emitters and switching from high-temperature radiators.
ii Refrigerants circulate through the heat pump to absorb, transport and release heat. When they are released or leaked from the heat pump, refrigerants have
a negative impact in terms of greenhouse gas emissions, which is measured by their global warming potential (which is lower for refrigerants that emit fewer
greenhouse gases).
iii The Renewable Heat Incentive (RHI), initiated in 2011, was designed to provide an ongoing tariff for the production of renewable heat. The non-domestic
RHI closed to new applicants in 2021, and the domestic RHI closed in March 2022. A total of 513,000 new installations were planned by 2020, but by
the end of 2021 only 20,920 installations related to the non-domestic RHI and 87,337 installations related to the domestic RHI had been delivered.
See: UK Parliament, “Renewable Heat Incentive in Great Britain,” 2018, https://publications.parliament.uk/pa/cm201719/cmselect/cmpubacc/696/69606.htm;
OFGEM, 2020-21 NDRHI Annual Report, November 2021, https://www.ofgem.gov.uk/publications/2020-21-ndrhi-annual-report; OFGEM, Domestic RHI
Annual Report 2020-2021, July 2021, https://www.ofgem.gov.uk/publications/domestic-rhi-annual-report-2020-2021.
iv Ensured by energy performance regulations, such as the EU Ecodesign legislation, the US National Appliance Energy Conservation Act and the Japanese
Top Runner Program.
DRIVERS OF HEAT PUMP UPTAKE
Various factors have driven the development of heat pump markets.
With digital control measures and thermal storage, heat pumps
can use excess electricity from variable renewable energy sources
(such as wind and solar power) for heating and cooling purposes,
providing additional flexibility in the electricity network.30
The use
of large-scale heat pumps in district heating systems also can add
flexibility to heating systems.31
These factors, coupled with the
sector’s technological maturity and the capacity to manufacture
and distribute large volumes of equipment, have led governments
to integrate heat pumps into their climate plans as a key means for
decarbonising heating in buildings.32
For example, the implementation of China’s new Carbon
Neutrality Policy is expected to foster domestic growth in heat
pump installations, while the United Kingdom’s 2021 Heat and
Buildings Strategy sets a target for installing 600,000 heat
pumps annually by 2028.33
(p See Policy chapter.) In response
to the Russian invasion of Ukraine, the European Commission
announced in March 2022 its new REPowerEU plan, aimed
at installing 10 million heat pumps between 2023 and 2028 to
reduce EU reliance on Russian gas supplies.34
Updates of building codes and regulations also stimulate heat
pump uptake.35
France’s new building energy code, which entered
into force in early 2022, limits the emission intensity of space
heating and cooling systems, effectively phasing out the use of
fossil fuels in new homes.36
In the United States, multiple states
and cities have updated or are in the process of updating their
building codes to favour electrification in buildings; these include,
in 2021, California (which in August adopted the first US building
code to designate efficient electric heat pumps as a baseline
technology), Maryland, New York (which in December approved a
ban on natural gas use in new buildings) and Washington state.37
Air pollution prevention policies have driven the deployment
of heat pumps in some regions where coal-based heating is
prevalent, such as northern China, China’s Beijing-Tianjin-
Hebei region and Poland.38
Purchase subsidies (grants, loans or tax credits), in association
with national policies, can help counterbalance the upfront
costs of heat pumps, particularly during building renovations;
in new buildings, meanwhile, heat pumps can be an affordable
solution.39
The barriers associated with upfront costs vary by
region, technology and brandi
.40
In some regions, economies
of scale have made heat pumps more affordable; however,
frequent changes to legislation regarding minimum efficiency or
the use of refrigerants with low global warming potentialii
have
created a continuous need for manufacturers to innovate their
products, which can slow cost reductions.41
Subsidies to incentivise the switch from coal-fired boilers to heat
pumps have been effective in China (where the subsidy runs
from 2014 to 2026).42
Until recently, US heat pump subsidies were
aimed at ground-source units, but the November 2021 Build Back
Better Act introduced new tax rebates for installing heat pumps.43
In Canada, nearly all provinces provide rebates for heat pumps,
and in 2021 the federal government started the Greener Homes
Grants Program rebate scheme for energyefficient homes.44
In 2021, most countries in Europe offered some kind of fiscal or
financial support to incentivise the purchase of heat pumps.45
However, only six countries support renewable heating
technologies exclusively, while the rest simultaneously support
fossil fuel-based technologies (mainly gas boilers), reducing the
competitiveness of heat pumps.46
In March 2022, France decided
to stop incentivising gas or fuel oil boilers to reduce dependence
on fossil fuels.47
The United Kingdom is the only country that has
opted (with little success) to subsidise the energy generatediii
rather than the cost of the technology.48
The efficiency of heat pumps, coupled with continued
improvements in their energy performanceiv
, can help balance
their higher costs relative to fossil fuel alternatives.49
However,
the typically higher price of electricity compared to natural gas
can reduce the cost efficiency that heat pumps provide.50
On
average, electricity prices in the EU are twice as high as natural
gas prices – and up to 5.5 times higher in certain Member States
– impeding heat pump uptake.51
This is due mainly to higher taxes
and levies on electricity and to the fact that fossil fuel prices do
not internalise environmental costs.52
A carbon tax on heating fuels and/or tax relief for electric power
generation can help balance the price of electricity relative to
natural gas, while also being used to fund grant programmes for
heat pumps.53
Ireland announced in late 2021 that it would use its
carbon tax to support the implementation of its target for 600,000
heat pumps by 2030, and Germany has followed a similar model.54
(p See Snapshot: Germany.) Finland, Sweden, and Norway, which
have the highest carbon prices in Europe, also benefit from the
highest deployment of heat pumps per capita.55
118

i Where possible, all capacity numbers exclude pure pumped storage capacity
unless otherwise specified. Pure pumped storage plants are not energy
sources but 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.
Russian Federation 4%
India 4%
Norway 3%
Turkey 3%
Japan 2%
France 2%
Next
6 countries
China
Brazil
30%
Rest of World
30%
9%
Canada
7%
United States
7%
17%
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The global hydropower market progressed in line with
long-term trends, with new capacity additions of at
least an estimated 26 gigawatts (GW) in 2021, raising
the total global installed capacity to around 1,197 GWi
.1
The top
10 countries for installed capacity accounted for more than two-
thirds of the global total and were (in descending order): China,
Brazil, Canada, the United States, the Russian Federation, India,
Norway, Turkey, Japan and France.2
(p See Figure 32.)
Global generation from hydropower fell an estimated 3.5%
in 2021 to around 4,218 terawatt-hours (TWh).3
This reflected
changes in hydrological conditions, specifically the significant
and sustained droughts that have affected major hydropower
producers in the Americas and in many parts of Asia. Loss
of glacial icecaps, such as in the Himalayas, is causing long-
term change in output in affected areas.4
The large producers
experiencing the greatest decline in generation in 2021 were
Turkey (-28.7%), Brazil (-9.1%) and the United States (-8.8%).5
Other major markets with more modest contractions (although
in some cases larger multi-year declines) included India (-2.2%),
Canada (-1.5%) and China (-1.1%).6
 In line with long-term trends, global installed
hydropower capacity grew an estimated 26 GW
in 2021 to reach around 1,197 GW. China
maintained the lead in capacity additions, followed
by Canada, India, Nepal, Lao PDR, Turkey,
Indonesia, Norway, Zambia and Kazakhstan.
 Despite these additions, global hydropower
output fell around 3.5% in 2021, driven by significant
and sustained droughts that have affected major
producers in the Americas and parts of Asia.
 Climate-induced changes in operating
conditions, such as the loss of Himalayan
glacial icecaps, appear to be causing long-
term change in output.
 Large hydropower producers with the
greatest declines in generation in 2021 were
Turkey (-28.7%), Brazil (-9.1%) and the United
States (-8.8%). Other major markets that showed
more modest annual contraction (but in some
instances larger multi-year declines) included
India (-2.2%), Canada (-1.5%) and China (-1.1%).
 Global pumped storage capacity grew around
1.9% (3 GW) during the year, with most new
installations in China.
KEY FACTS
HYDROPOWER
Source: Based on IHA. See endnote 2 for this section.
Note: Totals may not add up due to rounding
FIGURE 32.
Hydropower Global Capacity, Shares of Top 10 Countries and Rest of World, 2021
119

Gigawatts
India
Canada
China Kazakhstan
Zambia
Norway
Indonesia
Turkey
Lao PDR
Nepal
+20.6
+20.6
0
100
50
35
150
35
30
25
20
15
10
5
200
250
300
400
350
35 Added in 2021
2020 total
+0.6
+0.6
+0.7
+0.7
+0.4
+0.4
+0.5
+0.5
+0.5
+0.5
+0.3
+0.3 +0.3
+0.3
+0.9
+0.9
+0.8
+0.8
China maintained the lead in commissioning new hydropower
capacity in 2021, followed by Canada, India, Nepal, the Lao
People’s Democratic Republic (PDR), Turkey, Indonesia, Norway,
Zambia and Kazakhstan.7
(p See Figure 33.) Global pumped
storage capacity (which is counted separately from hydropower
capacity) increased around 1.9% (3 GW), with most new
installations in China.8
In line with a long-term pattern, Asia continued to be the most
active market globally in 2021, based on capacity additions.
China had the largest share by far, with 20.6 GW of new capacity
added in 2021 (excluding pumped storage), for a year-end total
of 355 GW.9
Completed hydropower projects in the country
during the year represented an investment of CNY 98.9 billion
(USD 15.5 billion), down 7.4% compared to 2020.10
While China’s net hydropower capacity grew around 5.6%,
generation fell 1.1% to 1,340 TWh in 2021.11
Hydropower’s
relative contribution to the country’s energy mix has declined
in recent years as other generating technologies have gained
market share and as capacity utilisation has decreased (due
likely to changing weather patterns).12
During the period 2016-
2021, China’s overall electricity generation rose more than 36%,
while hydropower output grew only around 12% (with capacity
growth of 16%), causing hydropower’s share of supply to drop
from 19.4% to 16%.13
By mid-year, China had completed installation of all twelve
850 MW units at the 10.2 GW Wudongde plant on the upper
Yangtze River (Jinsha).14
Also on the Jinsha, the initial 8 GW of
the Baihetan station (eight 1 GW turbines) began operation,
representing the largest single-unit turbine capacity to date.15
Upon its expected completion in 2022, with 16 GW, it will be
the world’s second largest hydropower station after the Three
Gorges Dam in Hubei Province.16
These two plants, along with
the Xiluodu and Xiangjiaba plants, will form a cascade of power
stations on the Jinsha River totalling 46.5 GW.17
Source: Based on IHA. See endnote 2 for this section.
FIGURE 33.
Hydropower Global Capacity and Additions, Shares of Top 10 Countries, 2021
Hydropower's share in
China's
electricity mix
has declined in recent years
due to shrinking market
share and decreasing
capacity utilization.
120

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By year’s end, five 500 megawatt (MW) units were in operation
at the 3 GW Lianghekou station on the Yalong River.18
Located
in the Tibetan Autonomous Prefecture of Garze, in Sichuan
Province, the plant is built at an altitude of around 3,000 metres,
higher than any other hydropower plant in China.19
It also has one
of the world’s deepest reservoirs, up to 285 metres in depth.20
Lao PDR has been one of the most active Asian markets for
hydropower in recent years as it harnesses the Mekong River
and its tributaries mainly for electricity export to neighbouring
countries, wishing to become the “hydroelectric battery” of
South-East Asia.21
In 2021, the second phase (732 MW) of the 1.27
GW Nam Ou River cascade of dams was completed with the last
600 MW going online.22
Phase 1 was completed in 2016, and the
first unit of Phase 2 came online in 2019.23
The project is the first
investment by a Chinese company (PowerChina) outside China
under a build-operate-transfer model; it also is the first instance
of a Chinese company being granted the development rights to
an entire river basin outside its home country.24
The complex of
plants is to be transferred to the Lao government after 29 years
of operation.25
In 2021, the Mekong River Basin experienced extreme low flows
(the lowest in more than 60 years) for the third year in a row,
due to greatly reduced rainfall, with further changes to flow
patterns caused by the Basin’s many storage reservoirs.26
Such
changes have had varied impacts on the ecology and livelihoods
in the Mekong Delta.27
Expected economic and social benefits
of further hydropower development in the Basin (including
flood control, irrigation and poverty reduction) are countered
by adverse effects including the loss of fisheries, damage to
wetlands and mangroves, and loss of sediment deposits that
support agriculture in the Delta.28
Among the more notable developments in Nepal during the year
was the start of operations at the country’s largest hydropower
facility, the run-of-river 456 MW Upper Tamakoshi.29
Located in
a remote region in the upper Himalayas, the plant’s expected 2.3
TWh of annual output has increased Nepal’s electricity generation
60% and alleviated severe shortfalls in supply.30
The facility is
expected to enable national supply to exceed current consumption
during the rainy season, and to spur economic growth.31
Indonesia completed several new hydropower projects in
2021, expanding its installed capacity 0.5 GW to reach a total of
6.6 GW.32
These projects included a 260 MW expansion at the
Poso hydropower plant on the Poso River in Central Sulawesi
(now 515 MW), serving as a dedicated load-following generator
(peaker).33
Also completed were the 90 MW Malea plant on the
Saddang River in South Sulawesi, along with 18 small hydropower
units totalling 111 MW.34
India added 843 MW of hydropower capacity in 2021, raising the
total to 45.3 GW.35
Among project completions were the last two
150 MW turbines at the 600 MW Kameng project in Arunachal
Pradesh, two 50 MW units at Sorang, 113 MW at Rongnichu and
three 60 MW units ready for service by year’s end at the Bajoli
Holi plant.36
As of the end of 2021, India had more than 12 GW of
hydropower capacity under development.37
Although India’s hydroelectricity generation fell slightly during
2021 (-2.2%) to 168.4 TWh, the overall trend in recent years has
been a large increase in output, driven mainly by the melting
of glacial icecaps.38
In the five years since 2016, hydropower
generation rose 31% while installed capacity increased only
9.2%.39
Glacial melting in the Himalayas contributes to increased
river flow, as the mountain range has lost an estimated half metre
of ice (8 billion tonnes of water) on average per year over the last
two decades.40
In early 2021, the Rishi Ganga River in Uttarakhand
swelled more than 15 metres in an avalanche-induced flash flood
of glacial meltwater.41
In additions to the many lives lost, the
torrent destroyed the 13.2 MW Rishi Ganga plant and damaged
the 520 MW Tapovan-Vishnugad plant under construction.42
Turkey’s installed hydropower capacity grew 0.5 GW in 2021, for
a year-end total of 31.5 GW, which is just under a third of the
country’s overall generating capacity.43
However, generation
has faltered since setting a record in 2019, when short-lived
improvements in hydrological conditions raised output to
88.8 TWh, around 30% of the country’s total electricity supply.44
Output dropped to 78 TWh in 2020, then plummeted in 2021 to
55.7 TWh (16.8% of supply).45
The remaining two 155 MW turbines
were installed at the 500 MW Lower Kaleköy on the Murat River,
completing the project.46
In addition to the hydropower plant, the
facility incorporates an 80 MW solar PV array.47
121

i This excludes 22.9 GW of US pumped storage capacity.
Also on the Murat River, Turkey’s 280 MW Alpaslan II plant
was completed by its Czech developer.48
The plant’s four
Francis turbines are differentiated (two at 110 MW and two at
30 MW) to optimise energy production across varying operating
conditions.49
Because the first unit was operational as of 2020,
the plant qualified for a USD-based feed-in-tariff (FIT) for its first
decade of operation with a local content increment.50
Turkey
replaced the FIT in 2021 with one based on the Turkish lira for
both the basic tariff and a local content increment, resulting in an
effective tariff reduction of 56% as of the end of 2021.51
In South America, Brazil added 13 generating units totalling
119 MW in 2021 (each less than 10 MW), for a year-end installed
capacity of 109.4 GW, following a similar pattern in 2020 (178 MW
installed).52
The Brazilian hydropower market has looked very
different in the last two years compared to years past, when
annual additions were usually counted on a gigawatt-scale
(averaging 3.8 GW annually during 2014-2019).53
The national
market, which led globally in annual capacity additions as recently
as 2019 (4.95 GW added), is now much smaller.54
This appears to
be a trend, as Brazil expects just over 300 MW to come online in
2022.55
The drop in additions reflects in part social and ecological
restrictions on all but 12 GW (23%) of the country’s remaining
undeveloped capacity potential (of unit sizes larger than 30 MW),
as well as the vastly higher environmental costs of developing
hydropower relative to the faster growing technologies of wind
power and solar photovoltaics (PV).56
The Brazilian authorities and system operator acknowledged
in 2021 that the country was undergoing the worst hydrological
crisis since 1930, following seven years of sub-average rainfall.57
Hydropower generation dropped sharply from the previous year
(down 9.1%) to 378 TWh, comprising 63% of supply.58
In terms of
both energy generated and the share of Brazil’s electricity mix,
hydropower has been in long-term decline since its peak in 2011
(when it reached 453 TWh and a 91% share).59
Chile brought into service two units, the 24 MW Digua and the
14.9 MW Hidromocho.60
The country has focused mostly on
building small hydropower plants in recent years; in the five years
since 2016, the 28 units that went into service (200 MW in total)
averaged only around 7 MW each.61
The exception is the 531 MW
Alto Maipo complex, which synchronised its first unit to the grid
in early 2022.62
The developer entered bankruptcy protection in
late 2021 and initiated a process of financial reorganisation.63
Hydropower generation in Chile fell sharply in 2021 (down 20%)
to represent 20% of the country’s electricity supply, well below
the 30% average share over the preceding decade.64
Peru completed the 84 MW La Virgen hydropower plant,
following years of delays.65
All other new hydropower units in
the country completed since 2016 (188 MW) have been around
20 MW or less.66
In 2021, Peru generated 28.3 TWh from
hydropower, or around 53.2% of its total electricity supply.67
Ecuador began synchronisation of the first of three 16.3 MW
units of the 49 MW Sarapullo plant, with the rest to follow in early
2022.68
Located on the Pilatón River, this plant and the adjoining
Alluriquín facility make up the 254.4 MW Toachi Pilatón complex
completed in 2021.69
To the north, the United States ranks fourth globally in
hydropower capacity at 80 GWi
, with its stated net capacity
expanding 103 MW in 2021.70
Nine small hydropower units
were added (totalling 65 MW), and nine were retired (8 MW).71
Pending projects also are all relatively small: 85 projects are in the
pipeline, averaging 4 MW apiece, with the largest being 10 MW.72
US hydropower generation fell 8.8% in 2021 to 260 TWh, around
7.3% below the average for the preceding decade.73
Refurbishment occurred at existing plants such as the Grand
Coulee Dam in Washington state. This 6.8 GW facility, the largest
power generating complex in the country, is undergoing multi-
year overhaul and modernisation work, with one 805 MW unit
completed in 2021.74
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In Canada, the 824 MW Muskrat Falls facility in Labrador
brought into service the second half of its generating units during
the year.75
The project suffered significant delays and budget
overruns. Difficulties also remain with the transmission interlink
with Newfoundland, limiting access to intended customers.76
In
Manitoba, the first five of the seven generating units making up
the 695 MW Keeyask plant were placed into service in 2021.77
Public opposition remains a major obstacle to new transmission
projects aimed at exporting Canadian hydropower to the United
States. In late 2021, construction on a new transmission corridor
from Quebec through the US state of Maine was halted after a
public referendum in Maine firmly rejected the plans; a previous
attempt to make the crossing via neighbouring New Hampshire
failed in 2018 due to similar local opposition.78
In 2020, after
some setbacks, the Manitoba-Minnesota transmission link was
completed to carry 250 MW of firm power from the Keeyask
facility to the US state of Minnesota.79
In Africa, Ethiopia began generating electricity at its 5 GW
Grand Ethiopian Renaissance Dam on the Blue Nile in early 2022,
having partially filled the vast reservoir since 2020.80
The country
stressed the project’s importance for wider electrification of the
country while refuting long-standing concerns from downstream
neighbours Sudan and Egypt, which claim that Ethiopia’s actions
risk their vital interests in the water resource.81
Filling the reservoir
will take some time, and at the proposed schedule of three to five
years, Egypt’s water supply could be reduced by more than a
third (the country relies on the Nile for 90% of its water), affecting
arable land and agricultural output.82
International engagement
in the decade-old dispute between the parties has not led to a
resolution, and Egypt has vowed not to let the dam impede its
water supply.83
Zambia completed the first two of five 150 MW units at the Kafue
Gorge Lower station.84
The project, built by Sinohydro (China)
and funded by Exim Bank of China, has experienced delays
attributed to creditors not dispersing funds due to concerns
about sovereign debt.85
Commissioning was reportedly delayed
by Sinohydro, which is seeking further financial guarantees from
the debt-laden state utility.86
Pumped storage capacity increased significantly in 2021, rising
around 3 GW to 163 GW.87
By year’s end, China completed the
second phase of the world’s largest pumped storage plant, the
3.6 GW Fengning station in Hebei Province.88
Under construction
since 2013, the facility uses twelve 300 MW reversible turbines
and is intended to meet peak demand and to support grid
stability and variable renewable generation in Hebei and Inner
Mongolia.89
Notably, it is the first direct current (DC)-coupled
pumped storage plant in China, making it more efficient in
function.90
In total, China completed 2.85 GW of pumped storage
in 2021, spread across nine units.91
In the US state of South Carolina, continuing upgrades at the Bad
Creek pumped storage plant added 70 MW of capacity.92
When
all four turbines are upgraded by 2023, the plant’s capacity will
have grown by 280 MW to 1.64 GW, making it one of the largest
such facilities in the United States.93
In Portugal, the first 220
MW unit of the 1,158 MW Tâmega pumped storage facility was
synchronised in early 2022.94
After design and implementation missteps in previous years,
the World Bank re-approved partial funding of Indonesia’s first
pumped storage facility, the 1,040 MW Upper Cisokan on West
Java.95
With more than 80% of electricity on the Java-Bali grid
coming from fossil fuels, the objective of the facility is to serve
peak power demand and to accommodate larger penetration of
renewable energy, while alleviating grid congestion.96
A modernisation project at South Africa’s second largest pumped
storage facility (built in 1981) was completed in 2021, with new
generators expected to last another 40 years.97
The power plant
for the 1 GW facility in the Drakensberg mountains of KwaZulu
Natal province is built entirely underground.98
123

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 photovoltaics or floating wind.
OCEAN POWER MARKETS
Ocean power technologiesi
represent the smallest
share of the renewable energy market. Deployments
increased significantly in 2021, with devices adding 4.6 megawatts
(MW) of capacity to reach a total operating installed capacity of
around 524 MW by year’s end.1
Two tidal range systems – the 240 MW La Rance station in France
and the 254 MW Sihwa plant in the Republic of Korea – account for
the majority of this installed capacity. Tidal range systems operate
similarly to hydropower; however, because potential locations are
limited and large-scale environmental engineering is required, few
proposals have been advanced to expand such systems.
The main focus of development efforts today is tidal stream devices
and wave energy converters. Advancements in these technologies
have been concentrated in Europe and especially in the United
Kingdom, which has significant ocean power resources. Elsewhere,
revenue support and ambitious research and development (RD)
programmes are spurring increased development and deployment
in countries such as Canada, China and the United States.2
Tidal stream devices are approaching maturity, and pre-
commercial projects are under way. Since 2010, around 40 MW
of tidal stream capacity has been deployed, with around 15 MW
currently operational.3
Device design for utility-scale generation
has converged on horizontal-axis turbines mounted either on the
sea floor or on a floating platform.4
Total generation exceeded
68 gigawatthours (GWh) as of the end of 2021.5
Wave power devices have yet to see the same level of design
convergence. Developers generally aim to tap into utility-scale
electricity markets with devices above 100 kilowatts (kW) and
to meet specialised applications with devices below 50 kW.6
Around 25 MW of wave power has been deployed since 2010,
with around 3 MW currently operational.7
OCEAN POWER INDUSTRY
The ocean power industry rebounded in 2021 as supply chains
recovered from disruptions caused by the COVID-19 pandemic
and as significant new public and private investment flowed into
the sector. Most capacity additions were test deployments, with
developers continuing to demonstrate, refine and validate their
technologies.
Six tidal stream devices totalling 3.1 MW were successfully
deployed in 2021.
A 500 kW SIMEC Atlantis Energy (UK) tidal turbine was installed
in Japan, producing more than 90 megawatt-hours (MWh) at
high availability in its first five months8
SIMEC’s turbines also
continued to generate power at the MeyGen array in Orkney,
Scotland and have delivered more than 37 GWh since they
entered into operation in 2016.9
Also in Orkney, the European
Marine Energy Centre (EMEC) deployed the 2 MW Orbital O2
device and the 2 MW Magallanes Renovables tidal platform.10
 The ocean power industry rebounded in 2021
as supply chains recovered from disruptions
caused by the COVID-19 pandemic.
 More than USD 180 million in new
investment flowed into the sector from
diverse sources, including public funding
programmes, private investment, initial public
offerings and crowdfunding.
 Maintaining revenue support for ocean
power technologies remains crucial for
helping the industry achieve greater maturity.
KEY FACTS
OCEAN POWER
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In Canada, Sustainable Marine (UK) installed a 420 kW floating
tidal energy platform in the Bay of Fundy, Nova Scotia, with grid
connection scheduled for early 2022.11
The French company
Guinard Energies Nouvelles deployed two 3.5 kW devices,
designed for use in isolated communities, in France and Togo.12
Slow Mill Sustainable Power (Netherlands) commissioned a
40 kW device following prototype testing in the North Sea.13
The Ocean Renewable Power Company (ORPC, US) deployed
a second 35 kW RivGen unit in a remote Alaskan community,
providing baseload power and reducing diesel consumption
60-90%.14
Wave power projects continued to face significant delays, but
10 deployments occurred, totalling nearly 1.4 MW in capacity.15
Wello (Finland) deployed a 600 kW device at the Biscay Marine
Energy Platform in Spain.16
In China, the Penghu aquaculture
platform completed 28 months of operation, and the 500 kW
Zhoushan wave energy unit completed its first round of testing
and a second unit was deployed.17
Wave Swell Energy (Australia)
installed a 200 kW floating oscillating water column device at
King Island in Tasmania, and Azura Wave Power (New Zealand)
deployed a 20 kW grid-connected device for testing at the US
Navy’s Wave Energy Test Centre in Hawaii.18
Two small wave
power plants were installed in breakwaters in the Republic of
Korea and Norway, and a 1 MW breakwater project was agreed
to in Portugal.19
Development of other ocean power technologies, such as ocean
thermal energy conversion (OTEC), remains slow, and only a
handful of pilot projects have been launched.20
In 2021, São Tomé
and Príncipe announced a public-private partnership to deploy
a floating OTEC platform.21
Technology improvements and steep cost reductions are
still needed for ocean power to become competitive in utility
markets, and the industry has not yet received the clear market
signals it needs to take the final steps to commercialisation. The
lack of consistent support schemes for demonstration projects
has proved especially challenging for developers, and dedicated
revenue support is considered paramount for providing
predictable returns until the industry achieves greater maturity.22
As of 2018, more than EUR 6 billion (USD 6.8 billion) had been
invested in ocean power projects worldwide, of which 75% was from
private finance.23
A 2018 European Commission implementation
plan estimated that EUR 1.2 billion (USD 1.4 billion) in funding
was needed by 2030 to commercialise ocean power technologies
in Europe, requiring equal input from private sources, national
and regional programmes, and European Union (EU) funds.24
Although the sector remains highly dependent on public funding
to leverage private support, the 2020 announcement of two
large private investments totalling USD 13.7 million spurred
additional momentum in 2021.25
ORPC secured USD 25 million
from an investment consortium; Eco Wave Power (Sweden)
raised USD 9 million in its initial public offering; the owners of
Minesto (Sweden) contributed EUR 4.4 million (USD 5.0 million)
to support commercialisation; and three other developers – Nova
Innovation (UK), Wavepiston (Denmark) and QED Naval (UK) –
raised a total of USD 6.8 million through crowdfunding.26
Significant policy measures and public funding programmes were
announced. The EUR 45 million (USD 51 million) EU-SCORES
project and the EUR 21 million (USD 24 million) FORWARD-2030
project focus on the development of hybrid systems, such as
ocean power co-located with wind, while the EuropeWave RD
programme will support the development of wave power by
combining nearly EUR 20 million (USD 23 million) in national,
regional and EU funding.27
The United Kingdom announced a GBP 20 million (USD 27 million)
annual investment in tidal stream as part of its Contracts for
Difference Scheme, aiming to drive technology development,
lower costs and make tidal power more competitive with offshore
wind power.28
This could spur deployment of 30-60 MW between
2025 and 2027.29
The five-year, GBP 10 million (USD 13 million)
Ocean-REFuel project was launched to explore methods for
converting ocean power into fuels.30
Deploying ocean energy at scale will require streamlined
consenting processes.31
Uncertainty about environmental
interactions has led regulators to require significant data
collection and strict environmental impact assessments, which
can be costly and threaten the financial viability of projects and
developers.32
Current science suggests that the deployment of a
single device poses little risk to the marine environment, although
the impacts of multi-device arrays are not well understood.33
This
calls for an “adaptive management” approach that responds to
new information over time, supported by more long-term data
and greater knowledge-sharing across projects.34
Ocean power bounces back
with 16 deployment and
USD 180 million
in new investment.
125

i Vietnam and the Netherlands exited the top 10 countries for capacities added
in 2020, replaced in 2021 by new entrants Spain and France.
Gigawatts
~942
Gigawatts
World
Total
0
100
200
300
400
500
1000
900
800
700
600
2016
2015
2014
2013
2012
2011 2017 2018 2019 2021
2020
Annual additions
Previous year‘s
capacity
70
70
100
100
138
138
178
178
228
228
305
305
407
407
512
512
+31
+30
+38
760
760
+40
+50
+77
+103
+104
+112
+139
~942
+175
623
623
The solar photovoltaics (PV) market maintained its
record-breaking streak, with new capacity installations
totalling an estimated 175 gigawatts (GW) in 2021 – up
36 GW compared to 2020.1
This was the largest annual capacity
increase ever recorded and brought the cumulative global solar PV
capacity to 942 GW.2
(p See Figure 34.) The market continued its
steady growth despite disruptions across the solar value chain, due
mainly to sharp increases in the costs of raw materials and shipping.3
Solar PV generation continued to play a substantial role in
numerous countries. By the end of 2021, at least seven countries
had enough capacity installed to meet at least 10% of their
electricity demand from solar PV, up from only two countries
in 2020.4
At least 18 countries had enough solar PV capacity
installed to meet 5% of their electricity demand, up from
15 countries in 2020.5
Australia had the highest share of solar PV
in annual generation, at 15.5%, followed by Spain (14.2%), Greece
(13.6%), Honduras (12.9%), the Netherlands (11.8%), Chile (10.9%)
and Germany (10.9%).6
In total, solar PV contributed around 5%
of global electricity generation, compared to 3.7% in 2020.7
For the ninth consecutive year, Asia dominated all other regions
in new solar PV installations, representing 52% of the global
added capacity in 2021.8
(p See Figure 35.) It was followed by
the Americas (21%), which again surpassed Europe (17%).9
The
top five country performersi
(in descending order) were China,
the United States, India, Japan, and Brazil, together comprising
around 61% of newly installed capacity.10
(p See Figures 36 and
37.) This top five share was lower than in 2020 (66%) as more
players entered the market in response to solar PV’s declining
capital and operational costs.11
 Solar PV maintained its record-breaking streak,
with new capacity increasing 25% in 2021;
global solar penetration averaged 5% in 2021,
up from 3.7% in 2020.
 For the ninth consecutive year, Asia
dominated all other regions in new solar PV
installations, representing 52% of the global
added capacity in 2021.
 France was a new entrant to the top 10
solar PV installers (tenth globally and third in
Europe), adding 3.4 GW of capacity; this was
more than triple the amount in 2020, bringing
France’s total installed capacity to 14.3 GW.
 After many years of declines, PV module
costs jumped an estimated 57% in 2021 as the
cost of raw materials increased sharply. Factors
contributing to rising module costs included
a polysilicon shortage and a rise in shipping
container costs from China, the world’s
dominant module producer.
 Supply chain disruptions in 2021 highlighted
the importance of domestic production of PV
modules, with the United States extending its
import tariff and India setting unprecedently
high solar import duties.
KEY FACTS
SOLAR PV
Source: Based on IEA PVPS. See endnote 2 for this section.
FIGURE 34.
Solar PV Global Capacity and Annual Additions, 2011-2021
126

Gigawatts
2016
2015
2014
2013
2012
2011 2021
2017 2018 2019 2020
0
100
200
300
400
500
1000
900
800
700
600
70
70
178
178
100
100
138
228
305
407
407
512
623
760
~942
Rest of World
Germany
India
Japan
United States
China
World
Total
~942
Gigawatts
+45.8
+45.8
+26.9
+26.9
+13.0
+13.0
+4.6
+4.6
+5.3
+5.3
+4.9
+4.9
+54.9
+54.9
+6.5
+6.5
+5.5
+5.5
+4.2
+4.2
+3.4
+3.4
0
100
50
150
25
50
75
100
125
200
350
300
250
Rest
of World
150
Added
in 2021
2020 total
Republic
of Korea
France
Gigawatts
China Australia
Spain
Germany
Brazil
Japan
India
United
States
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FIGURE 35.
Solar PV Global Capacity, by Country and Region, 2011-2021
FIGURE 36.
Solar PV Capacity and Additions, Top 10 Countries for Capacity Added, 2021
127

i Distributed generation refers to systems that provide power to grid-connected consumers, or directly to the grid, but on distribution networks rather than on bulk
transmission or off-grid systems. In this section, it refers to rooftop and groundmounted PV for residential, commercial and industrial applications.
ii Japan’s contraction in annual solar PV additions lasted four consecutive years, ending in 2020.
31%
26%
China
Rest of World
15%
20%
United States
7%
India
Japan 4%
Brazil 3%
Germany 3%
Spain 3%
Australia 3%
Republic of Korea 2%
France 2%
Next 7 countries
The next five markets in 2021 were Germany, Spain, Australia, the
Republic of Korea and France.12
The threshold of annual market
size required to rank among the top 10 countries in 2021 was 3.4
GW, up from 3 GW in 2020.13
The leading countries for cumulative
solar PV capacity remained China, the United States, Japan, India,
and Germany, while the leading markets for per capita capacity
were Australia, the Netherlands and Germany.14
China added 54.9 GW of solar PV capacity in 2021, of which
around 29.3 GW (53%) was distributedi
solar PV and 25.6 GW was
centralised solar PV.15
Overall, China’s market grew 21.5% to reach
a cumulative capacity of 305.9 GW, with 107.5 GW (35%) from
distributed generation and 198.4 GW (65%) from centralised plants.16
China’s market for centralised PV plants grew around 15% in
2021, while distributed solar PV was up 37%.17
Given that 2021
was the final year to benefit from central government subsidies
for residential systems, residential PV expanded 113% year-on-
year.18
Total electricity production (from all sources) increased
9.8% in China, while electricity produced from solar increased
25.2%, to 327 terawatt-hours (TWh).19
Solar PV’s share of total
generation increased 15%, rising from 3.4% in 2020 to 3.9% in
2021.20
Curtailment of solar energy in China averaged 2% in 2021,
unchanged from the previous two years.21
India was the second largest market in Asia for new solar PV
capacity, and third globally. Following two years of contraction,
annual solar additions in the country underwent substantial
growth in 2021 with an additional 13 GW installed, more than
double the amount in 2020 and more than in any previous year,
setting a new record.22
This brought India’s cumulative total to
nearly 60.4 GW, enough to vault it into fourth place globally,
ahead of Germany.23
New capacity in India included around
9 GW (63%) of utility-scale solar (large-scale, centralised systems
connected to the grid) and nearly 3.4 GW (23%) of distributed
generation, with the rest being off-grid applications.24
Market
expansion was driven mainly by the focus on local manufacturing
and the continuation of projects delayed since 2020 due to the
COVID-19 pandemic.25
Distributed rooftop installations in India reached an all-time high
in 2021, to comprise around 17% of the country’s cumulative solar
market.26
Major potential lies in the commercial and industrial
segment, which consumes around 49% of India’s electricity
generation and accounts for some 70% of distributed generation
capacity.27
Among the obstacles to solar expansion reported by
commercial and industrial consumers are prolonged government
approval processes and resistance from distribution companies.28
On a positive note, after stakeholders protested the government’s
December 2020 announcement that it would allow net metering
only for PV installations up to 10 kilowatts (kW), the government
adjusted the scheme in April 2021 to allow loads up to 500 kW
to be eligible.29
Japan’s solar PV market declined in 2021.30
The contraction was
a result of challenges witnessed prior to 2020ii
, including grid
connection constraints, a rising levelised cost of electricity for
solar systems, limited land availability (and higher associated
costs), and unfavourable conditions for off-site power purchase
agreements (PPAs), such as high wheeling, grid integration and
balancing fees.31
Note: Totals may not add up due to rounding.
FIGURE 37.
Solar PV Global Capacity Additions, Shares of Top 10 Countries and Rest of World, 2021
128

i Here, non-residential refers to commercial, government, non-profit and community solar PV systems.
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In 2021, the Japanese government developed a set of measures
to expand solar PV, including requiring 60% of new residential
buildings to include rooftop PV; introducing rooftop PV at airports
nationwide; deregulating land zoning to allow PV installations
on agricultural land (p see the sub-sections on floating PV and
agrivoltaics); and revisiting the climate law with the aim of shifting
to carbon-neutral governmental institutions (i.e., zero-emission
buildings).32
To mitigate the land scarcity challenge, Japan’s New
Energy and Industrial Technology Development Organization
(NEDO) issued guidelines to further support ground-mounted
agricultural PV facilities that support dual land uses.33
Japan added an estimated 6.5 GW in 2021.34
Despite the
proposed measures to counteract the market contraction,
capacity additions fell 25% from the previous year, bringing the
country’s cumulative capacity to 78 GW (an amount eclipsed only
by China and the United States).35
Around 50% of Japan’s newly
installed capacity was utility-scale solar PV, with another 40% in
the commercial and industrial segment and the rest residential.36
Solar PV accounted for an estimated 9.3% of Japanese electricity
generation in 2021, up from 8.5% in 2020, with the highest local
contributions in Kyushu (14.6%) and Shikoku (14.2%).37
Other Asian countries that added noteworthy capacity in 2021
included the Republic of Korea (4.2 GW), Chinese Taipei and
Pakistan (around 2 GW each), and Vietnam (1 GW).38
The Republic
of Korea moved down a spot for capacity added, to ninth place
globally, and continued to rank eighth for cumulative capacity, with
20.1 GW in 2021.39
Turkey added at least 1.1 GW in 2021, and its market
continued to be driven by net metering and self-consumption.40
Vietnam, which in 2020 had added around 11 GW and ranked
third globally for new solar PV capacity installations, experienced
only minimal additions in 2021, due mainly due to the ending of
the feed-in tariff and the absence of a replacement solar pricing
policy.41
This freeze, which came after the country’s abrupt solar
surge, demonstrated the importance of long-term renewable
energy policies to support consistent PV deployment.42
It also
highlighted the relevance of investment in system upgrades
to unlock further solar PV potential and achieve minimal
curtailment.43
Even so, Vietnam made it into the top 10 countries
for cumulative solar capacity in 2021, ranking tenth with 17.4 GW.44
The Americas represented around 21% of the global solar PV
market in 2021, mainly because of developments in the United
States, which continued to rank second globally for both new
installations and total capacity.45
The country added a record
26.9 GW during the year, up 19% to reach a cumulative capacity
of 121.4 GW.46
Solar PV was the leading source of US added
generation capacity for the third consecutive year, accounting for
a record 46% of US total capacity in 2021.47
The top state for new additions was Texas, which (with 6 GW) for
the first time outranked California (3.6 GW), followed by Florida
(1.6 GW).48
Total US solar PV generation was 163 TWh, with the
majority of this utility-scale (114 TWh) and the rest grid-connected
distributed rooftop systems (49 TWh); in total this represented
3.9% of all generation in the country in 2021.49
The US market was again led by centralised utility-scale plants,
which reached a national record of 17 GW of newly added solar PV
capacity in 2021, for a total of 76.8 GW.50
After three consecutive
years of contraction, non-residentiali
installations grew 14%,
adding 2.4 GW to reach 19 GW.51
With increased consumer
demand, the residential sector broke records with installations of
4.2 GW – up 30% from 2020 and the highest annual growth rate
since 2015 – to reach a total capacity of 23.1 GW.52
SolarPVuptakecontinuedtogrowinLatinAmerica,despiteaslow
recovery from the impacts of the COVID-19 pandemic.53
The top
four performers in newly installed capacity were Brazil (5.5 GW),
Mexico (1.8 GW), Chile (1.3 GW) and Argentina (0.2 GW).54
Brazil led in total installed capacity, ending the year with around
13 GW.55
The country’s newly added capacity advanced Brazil to
fifth place in the global ranking (up from ninth in 2020).56
For the
third consecutive year, distributed solar installation led Brazil’s
market for newly added capacity, with 4 GW, driven by soaring
electricity prices due to a hydropower crisis and by a national net
metering regulation.57
The residential sector accounted for the
bulk of installations (77.4%), with commercial systems coming in
second (12.7%).58
129

Europe followed the Americas for new additions in 2021,
adding around 28 GW for a year-end total of 191 GW; it was
able to maintain its second place ranking for total installed
capacity, with a 21% share of the global PV market.59
New
installations in the EU-27 increased 29.5% relative to 2020, with
notable additions in countries across the region.60
In total, the
EU-27 brought online around 25 GW, raising its overall solar PV
capacity 17.8% to reach 165.5 GW, marking the region’s best
year for solar.61
The top EU markets for new additions were Germany (5.3 GW),
Spain (4.9 GW), France (3.4 GW) and the Netherlands and Poland
(3.3 GW each). The top countries for total capacity at year’s end
remained Germany, Italy, Spain, France and the Netherlands.62
In addition to the EU-27, the United Kingdom added 0.7 GW, up
from 0.5 GW in 2020, for a total capacity of 14.4 GW.63
The UK
market continued to experience consistent, unsubsidised growth
across different market segments, driven in part by higher gas
prices.64
Switzerland installed another 0.6 GW, bringing its
cumulative capacity to 3.6 GW.65
Germany’s capacity’s additions were up 8% in 2021, which
was well below the 26% growth rate in 2020.66
The country’s
cumulative capacity reached 59.2 GW, ranking it fifth behind
India for the first time ever.67
Solar PV accounted for 9.9% of
Germany’s electricity production in 2021.68
Market drivers in
the country continued to be auctions, government tenders,
and effective regulatory amendments to support further market
investment (for example, cancellation of the energy surcharge
for selfconsumption). To unlock potential synergies between
solar PV and battery storage, a June 2021 amendment to the
German Energy Industry Act abolished double charges and
levies for battery systems, enabling better use of the flexibility
potential of batteries in the energy system.69
Spain added 4.9 GW of solar capacity in 2021, 44% more
than in 2020 (3.5 GW).70
This marked a new record for annual
installations, bringing Spain’s total capacity to 18.5 GW,
representing annual growth of 36.7%.71
As in 2020, much
of the capacity addition was unsubsidised power purchase
agreements (PPAs), making Spain the largest stakeholder of
PPAs in the European market.72
In comparison to large ground-
mounted systems, Spain's self-consumption market accounted
for a smaller share of installations, but the new national self-
consumption strategy, approved in 2021, aims to develop this
largely untapped segment.73
Also during the year, the country’s
first utility-scale solar plant (40 MW) combined with batteries
(9 MWh) was commissioned.74
France, a new entrant to the top 10 solar PV installers (tenth
globally and third in Europe) added 3.4 GW of capacity, more
than triple the amount in 2020, bringing its total installed capacity
to 14.3 GW.75
Solar PV generation increased around 12% in
2021, accounting for some 3% of the country’s total electricity
production.76
Most of the additions (54%) were systems larger
than 250 kW.77
To increase its relatively small rooftop PV share,
France, in line with current EU guidelines, raised its feed-in
threshold from 100 kW to 500 kW, making procedures easier
for this market segment, where projects previously were limited
by tendering.78
France’s second largest PV plant came online in
September with an installed capacity of 152 MW.79
Also in 2021,
the government announced its aim to install at least 3 GW of
solar capacity annually to 2025 and released an action plan of
10 measures to facilitate this expansion.80
Australia remained the largest solar PV market in the South
Pacific, ranking eighth globally for additions and sixth for total
capacity.81
It added around 4.6 GW in 2021, for a cumulative
capacity of around 25.4 GW.82
In 2021, Australia set a new global
record of 1 kW of installed solar PV per capita, which was 31%
higher than in the runner-up country the Netherlands (0.765 kW
per capita).83
Solar PV generation rose more than 26%, to 28.5
TWh, to represent 12.4% of Australia’s total generation; rooftop
PV alone accounted for 24.9% of renewable generation and for
8.1% of all generation.84
Europe followed the
Americas for new
additions in 2021,
adding around
28 GW
for a year-end total of
191 GW.
130

i Agricultural PV use the same site for both energy and crop production.
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The rooftop sector continued to contribute most of the new
capacity in Australia, setting new records for both solar PV and
small-scale battery storage installations. More than 3.3 GW of
small-scale solar PV systems (under 100 kW) was installed in
2021, up from 2.9 GW in 2020, for a total exceeding 16 GW.85
Household battery additions grew significantly (45%) in 2021,
with an estimated 34,741 battery systems added with a combined
capacity of 347 MWh.86
By year’s end, a record 3 million homes
across Australia had rooftop solar systems.87
However, the
country’s remarkable uptake of rooftop solar has challenged the
stability of the grid, leading some jurisdictions to introduce export
limits and remote disconnection in 2021.88
Another proposed
measure recommended charging rooftop solar customers for
exporting their surplus electricity to the grid.89
The Middle East and Africa added an estimated 5.2 GW in
2021, up 3% for a total of 28 GW.90
Off-grid installations grew
rapidly, and rooftop PV outside of any regulatory scheme has
progressed quickly in many countries.91
Despite the region’s
favourable irradiance, it had the fewest countries reaching
the milestone of covering 5% of their electricity demand with
installed solar PV; by year’s end, Egypt and the United Arab
Emirates – the hosts of the next two United Nations climate
summits – were at 3%.92
Globally, both the utility-scale PV market and the rooftop market
experienced growth in 2021, while their relative shares of annual
installations stayed the same as the previous year.93
Capacity
additions of utility-scale PV increased around 20%, to reach a total
of 100 GW of installations, while rooftop PV rose around 25% to
reach 75 GW.94
As of 2021, more than 40% of global utility-scale installations
were in China (25.6 GW) and the United States (17 GW).95
Utility-
scale solar is now growing even in the absence of government
subsidies, driven by the economic competitiveness of solar
electricity and the attractiveness of PPAs. In Denmark, where
solar PV installations surged in 2021, more than 90% of the added
capacity was from large-scale, unsubsidised projects, driven by
clearly defined market regulations, co-operative municipalities
and utilities, and high maturity of the PPA market.96
Utility-scale
projects also played a crucial role in the expansion of solar
markets in Spain and France.
The main installations in the rooftop market occurred in China,
the United States, Spain, Australia and Germany.97
In Europe, the
expansion of distributed generation installations was driven by
the fuel crisis and by surging electricity prices, pushing entities to
rely on self-consumption and to reduce their dependence on the
electrical grid, where possible.98
Globally, the residential rooftop
segment outperformed both the commercial and industrial
rooftop segments for the first time, growing 30% in 2021.99
Rooftop PV installations on residences and small commercial
buildings grew around 33% in 2021, whereas installations in the
commercial and industrial segment fell 3-4%.100
This discrepancy is attributed to the rising price of PV modules
as a result of supply chain disruptions. Medium-scale solar PV
plants (greater than 500 kW) commissioned on the premises of
commercial and industrial customers are more vulnerable to such
disruption than small-scale residential solar systems. For smaller-
scale PV installations, the labour and sales costs represent a
higher share of the overall system cost for users, making these
systems less influenced by price fluctuations.101
A number of countries took steps in 2021 to expand the market
share of rooftop PV systems and their contribution to the energy
mix. China announced a programme that requires government,
public, commercial and rural buildings to have a specified
percentage of rooftop solar systems by 2023.102
Norway has
introduced modifications to its rebate scheme for residential solar
installations to allow further market expansion.103
In South Africa,
where electricity production has been declining for a decade, the
public utility Eskom was able to minimise the generation gap by
tapping into rooftop solar that feeds into the grid, while generating
revenue from wheeling fees.104
Egypt and the United Arab Emirates
both wish to position themselves as positive climate actors and have
increased their rooftop PV ambitions (in the case of Egypt, raising
the target from 300 MW to 1,000 MW).105
After India increased its
cap on solar PV installations under its net metering scheme, the
country’s rooftop PV market hit an all-time high in 2021.106
Floating photovoltaics and agricultural PVi
are niche markets
that are increasingly gaining interest despite being around for more
than a decade. Such installations have managed to overcome the
land availability challenge that typically faces conventional solar
installations. In South-East Asia and Africa, where solar projects
tend to compete with agricultural land uses, these solutions are of
particular interest because they enable solar installations without
compromising water and food resources.107
131

i Not to be confused with building and applied PV (BAPV and VAPV), which consist of fitting PV modules onto a surface.
ii Polysilicon is the raw material for crystalline silicon which is used to manufacture PV wafers.
Floating PV plants continued to expand with installed capacity
exceeding 3 GW in 2021, up from only around 100 MW in 2016.108
The world’s largest floating PV plant (320 MW) came online in
China in 2021.109
In Europe, Portugal held an auction for 500 MW
of floating solar to be located at seven hydropower dams and
to be operational by year’s end.110
Singapore unveiled a 60 MW
floating solar farm, located on a reservoir in the country’s west,
that fully powers five water treatment plants.111
The world’s largest agricultural PV project, located in China, was
completed in 2021 with a capacity of around 1 GW.112
Asia hosts
the majority of agrivoltaic plants, although countries elsewhere,
such as Chile, the Gambia, and Mali, also have considerable
installations.113
In Europe, success stories can be found in
France, Greece, the Netherlands, and Spain, among others.114
Italy included EUR 1.1 billion (USD 1.24 billion) in support for
agrivoltaics in its post-COVID recovery plan.115
Farmers are
beginning to gain wider awareness of the benefits of agricultural
PV – including higher crop yields – and of the types of crops
suitable to grow under the shade of the PV panels, based on
research studies.116
Building-integrated PV systems and vehicle-integrated PVi
are niche methods of installation that entail integrating the
PV within a surface. Nearly half of the estimated installed
building-integrated PV capacity is in Europe, which has provided
significant financial support.117
Italy and France both implemented
supportive policies and together have around 5 GW of capacity.118
The expansion of building-integrated PV installations requires
innovations in the design of PV-integrated surfaces to encourage
architects to embrace the technology; multiple building
manufacturers now integrate PV into their products, including the
largest manufacturer, based in Canada.119
Vehicle-integrated PV remains nascent, although the concept is
not new.120
It can result in a 40% annual reduction in a vehicle’s
charging time and has progressed from the research and
development phase towards prototyping and demonstration,
with a few pilot projects (mainly in Germany) for heavy-duty
trucks and light vehicles.121
In January 2022, Mercedes-Benz
launched a prototype electric car with integrated PV that reportedly
produces an additional 25 kilometres of range per day.122
Micro-distributed solar generation is growing not only in off-
grid areas but increasingly in cities. In this set-up, both the solar
panel installation and the use of the output electricity occur in
the same location; it typically is used in outdoor spaces to charge
mobile phones or to power small cooking appliances.123
After many years of declines, PV module costs jumped an
estimated 32% in 2021, from an average of USD 0.21 per Watt-
peak to USD 0.33 per Watt-peak.124
The cost of industrial silicon
surged some 300%, aluminium rose more than 50%, and soda
ash, a key material for solar glass, increased 80%.125
Polysiliconii
also experienced a significant cost increase (around 350%)
to an unprecedented USD 38 per kilogram.126
To put this in
perspective, the input materials (polysilicon, metal commodities,
coatings and glass) comprise around 65% of the total cost of a
PV module, while PV manufacturing (module assembling, cell
processing and wafer processing) represents around 22% and
shipping 12.5%.127
Polysilicon alone makes up around 35% of the
total module cost.128
Most of the recent price increase has been
absorbed by upstream manufacturers of solar wafer, cells and
modules.129
A variety of factors contributed to the rising costs of PV module
materials and components. In response to a Chinese national
policy aimed at reducing the energy intensity of the economy,
several provincial governments in China restricted industrial
production, which resulted in reduced manufacturing of solar PV
components, primarily polysilicon.130
On top of the ongoing supply
chain disruptions, there were also shipping delays in 2021, as
well as a major increase in the price of transporting shipping
containers: for example, the cost of shipping a container from
China to California increased 43%, while the cost of shipping
from China to West Africa grew by a factor of five to six.131
In response to these and other (pandemic-related) disruptions
and uncertainties, some PV plant developers have postponed
132

i 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.
ii TOPCon cells adapt a sophisticated passivation scheme to advance cell architectures for higher efficiencies.
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installations to secure lower module prices.132
This means that
as soon as PV module prices go down, multiple installations
could be triggered.133
However, time limits in PPA contracts, as
well as expirations of government policies, could constrain how
long developers can postpone project construction.134
Multiple countries intensified a desire to lessen their dependence
on international markets for solar PV manufacturing. The
importance of domestic production was emphasised after the
US government banned imports of materials manufactured in
Xinjiang, China, following speculation that polysilicon producers
were using forced labour in the region, which supplies 45% of
the world’s polysilicon.135
Under the US ruling, importers are
required to provide solid evidence disproving the use of forced
labour (including child labour).136
Prior to the US ban, the EU
considered proposing a ban on products produced through
forced labour, but as of April 2022 it had not taken any steps
yet towards this.137
In the wake of its ban, the United States aims to expand domestic
solar PV manufacturing to minimise its supply chain dependence
on China and to position itself as leading solar supplier.138
Chinese PV manufacturers have responded by shifting their solar
supply chain away from Xinjiang – including to Inner Mongolia,
where the region’s more robust power grid offers greater access
to renewable energy, which can be used to offer customers a
product with a reduced carbon footprint.139
US actions to support local production of solar modules date back
to 2018 when the US International Trade Commission imposed a
30% tariff on solar cells and modules imported from China.140
Initially set to expire in February 2022, the tariff was extended
for another four years, with annual reductions of 25% per year;
however, it does not apply to the first 5 GW (cumulative) of
imported solar cells annually (the previous quota was 2.5 GW).141
Imported bi-facial modules, which were exempt from the tariff
from June 2019 to October 2020, remain exempt.142
India also is jockeying to
take the lead in solar PV
manufacturing, not only
to reduce its reliance on
China but also to export
cells internationally. Steps
towards Indian solar self-
sufficiency at the end
of 2021 included setting
unprecedently high solar
import duties that
increased the price of
imported panels around 40%; banning the import of Chinese panels
for at least the first quarter of 2022; and offering very attractive
subsidies for companies aiming towards local manufacturing.143
In 2021, passivated emitter cell (PERC)i
solar panels remained
the dominant cell technology, with around 90% of the PV
market share, as compared to n-type cells such as tunnel-oxide
passivated contact (TOPCon)ii
and heterojunction technology
(HJT).144
Following China’s successful localisation of factory
equipment needed to produce TOPCon cells and HJT panels, the
investment per gigawatt dropped in 2021 (from USD 35 million
to USD 28 million for TOPCon, and from USD 62 million to
USD 55 million for HJT), bringing these closer to the cost level of
PERC (USD 22 million per GW).145
The investment cost is lower
for TOPCon than for HJT, since PERC manufacturers can adapt
their manufacturing lines to TOPCon, whereas HJT requires an
all-new cell production line.146
In line with previous years, installations of bi-facial modules,
which capture light on both sides, continued to grow. By the end
of 2020, the total installed capacity of bi-facial systems was around
20 GW (additions in 2021 remain uncertain).147
Bi-facial modules
have an energy yield of around 6% to 10%, more than PERC
modules; however, the yield aspect by itself does not imply a lower
levelised cost of electricity.148
Recent studies that considered other
factors concluded that the levelised electricity cost from bi-facial
modules is either lower than or close to that of mono-facial.149
Multiple
countries
intensified a desire to
lessen their dependence
on international
markets for solar PV
manufacturing.
133

i CSP is also known as solar thermal electricity (STE).
Gigawatts
0
1
2
3
4
5
7
6
2016
2015
2014
2013
2012
2011 2017 2018 2019 2020 2021
Rest of World
Spain
United States
Chile
was the only
country to add
new CSP
capacity in
2021.
5.5
5.5
4.8
4.8
4.7
4.7
4.6
4.6
4.3
4.3
3.4
3.4
2.5
2.5
1.7
1.7
6.1
6.1 6.0
6.0
6.2
6.2
CSP MARKETS
In 2021, the global market for concentrating solar
thermal power (CSP)i
contracted for the first time
since the commercial establishment of the industry in the
1980s, to reach a total cumulative capacity of 6 gigawatts (GW).1
(p See Figure 38.) This contraction occurred as the launch of
the long-awaited 110 megawatt (MW) Cerro Dominador plant
in Chile was offset by the decommissioning of nearly 300 MW
of older CSP plants in the United States.2
Growth in the global CSP market has trended downwards since
2015, despite consistent cost declines during this period.3
Prior
to 2015, the market grew just under 40% annually on average
for eight years.4
The recent decline is due largely to inactivity in
the two countries with the most CSP installations, Spain and the
United States, which added no new capacity for eight and six
years, respectively, because of policy changes, project failures
and competition from solar PV.5
Some market recovery was
expected in 2022 with the addition of 750 MW of new capacity
in China and the United Arab Emirates.6
Crucial to scaling the
sector are policies that place greater value on the flexibility of
CSP with thermal energy storage (TES), as well as continued
efforts to reduce costs and increase capacity factors.7
 CSP market growth declined in 2021 due to
the decommissioning of an older 300 MW plant.
 Spain and the United States, the market
leaders in cumulative installed CSP capacity,
have not added new capacity for eight and
six years, respectively.
 More than 1 GW of new CSP capacity was
under construction in 2021 in Chile, China,
the United Arab Emirates and South Africa.
 Around 70% of the CSP capacity under
construction in 2021 was based on parabolic
trough technology, while the rest was tower
systems. These facilities include 8.8 gigawatt-
hours (GWh) of thermal energy storage capacity.
KEY FACTS
CONCENTRATING SOLAR THERMAL
POWER
FIGURE 38.
Concentrating Solar Thermal Power Global Capacity, by Country and Region, 2006-2021
134

i 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.
ii 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 2021. More
than 95% of global TES capacity in operation on CSP plants is based on molten salt technology. The remainder uses steam-based storage.
Gigawatt-hours
5
10
15
25
20
0
4.5
4.5
20.1
21.1
+0.7
+0.7
11.7
11.7
16.6
16.6
+0.5
+2.6
6.5
6.5
+2.0
9.8
9.8
+3.3
9.8
9.8
10.5
10.5 11.2
11.2
+4.9
+3.4
+1.0
23.0
+1.9
2016
2015
2014
2013
2012
2011 2020
2017 2019
2018 2021
23.0
Gigawatt-
hours
World Total
Annual additions
Previous year‘s
capacity
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Around 70% of the CSP capacity under construction in 2021
was based on parabolic trough technology, with the rest based
on tower systems.8
The facilities under construction will include
8.8 gigawatt-hours (GWh) of TES capacity.9
Chile’s 110 MW Cerro Dominador facility is the first commercial CSP
plant commissioned in Latin America and incorporates 17.5 hours of
TES (1,925 megawatt-hours, MWh)i
.10
The plant began construction
in2014butexperiencedprotracteddelaysaftertheoriginaldeveloper,
Spain’s Abengoa, was restructured during 2016.11
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).12
These installations,
expected to be operational during 2022, would bring the total
CSP capacity in the Middle East and North Africa to 1.7 GW.13
In China, around 250 MW of CSP capacity was under
construction, with the 50 MW Yumen Xinneng/Xinchen tower
plant (9 hours; 300 MWh) expected to be operational in 2022.14
China’s 14th Five-Year Plan emphasises support for CSP, and the
country has been one of the most active CSP markets in recent
years: plans were announced in early 2022 to complete 11 new
plants with TES by 2024.15
In South Africa, construction started on the 100 MW Redstone CSP
tower facility (12 hours; 1,200 MWh), after protracted delays.16
The
plant will bring the total CSP capacity in the country to 600 MW
upon its anticipated completed in 2023.17
Also in southern Africa,
Namibia’s national electricity utility, NamPower, announced plans
to tender a 50-130 MW CSP project during 2022.18
Spain remained the global leader for cumulative CSP capacity
in operation, with 2.3 GW at the end of 2021.19
However, the
country’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 2021,
reflecting no new capacity additions in eight years.20
Spain’s government has signalled an end to this hiatus with
the announcement of an auction for 200 MW of CSP capacity
in the first half of 2022 and a target of 5 GW of new CSP
capacity by 2027.21
The United States came in second with just over 1.3 GW of
commercially operational CSP, or slightly more than 20% of the
global capacity.22
CSP capacity in the country declined in 2021
with the decommissioning of 274 MW across several units of the
Solar Energy Generating Systems (SEGS) facility in California.23
Among the SEGS facilities, the 14 MW SEGS I plant, completed in
1984, was the first utility-scale commercial CSP plant ever built.24
By the end of 2021, an estimated 23 GWh of thermal energy storage,
based almost entirely on molten saltsii
, was operating in conjunction
with CSP plants across five continents.25
(p See Figure 39.) Only 2
of the 25 CSP plants completed globally since the end of 2014 do
not incorporate TES: an integrated solar combined-cycle facility
in Saudi Arabia and the Megalim plant in Israel.26
TES capacity,
installed mainly alongside CSP, represents nearly 40% of the global
energy storage capacity outside of pumped hydropower.27
FIGURE 39.
Thermal Energy Storage Global Capacity and Additions, 2011-2021
135

i Other notable developers, investors or owners of CSP plants that either entered operations or were under construction during the year included EIG Global
Energy Partners (US), Solar Reserve (US), the Shanghai Parasol Renewable Energy Company (China) and the Jiangsu Xinchen CSP Company (China). Some
of the leading companies involved in the engineering, procurement and construction of CSP facilities were Abengoa (Spain), Shanghai Electric (China),
Acciona (Spain), Brightsource (US) and Gansu No. 1 Construction Engineering Group (China). See endnote 1 for this section.
ii Heliostats are dual-axis tracking reflectors or mirrors grouped in arrays used to reflect sunlight in the collection tower.
CSP INDUSTRY
Industry activity in the CSP sector continued to focus largely on
Africa, the Middle East, and Asia, with Chile emerging as Latin
America’s first active commercial market.28
CSP projects that
either entered operations or were under construction during
2021 involved lead developers and investors from China, Saudi
Arabia and the United States.29
Contractors were based in China
Spain, and the United States.30
The Saudi company ACWA
Power remained the leading CSP project developer in 2021, with
800 MW under constructioni
.31
CSP costs continued to decline during the year, as evidenced by
the record-low CSP bid tariff (USD 34 per MWh) for the 390 MW
Likana plant (incorporating 13 hours of TES) in Chile, received
during a renewable energy capacity auction.32
This followed a
nearly 70% decrease in average CSP costs during the decade
ending in 2020.33
Multiple factors have contributed to these
declines, including technological innovation, improved supply
chain competitiveness, and the growing CSP capacity in regions
with high solar irradiance (which, along with increased TES
capacity, has boosted the overall capacity factor of the global
CSP fleet).34
The ability for CSP with TES to compete with other power
technologies is influenced strongly by the structure of power
auctions and procurement processes, and the value placed on
specific benefits of these systems in terms of dispatch flexibility
and capacity factor.35
(p See Energy Systems chapter.)
CSP with TES has high potential to enhance power systems that
incorporate large volumes of variable renewable power based on
solar PV and wind.36
In many cases, CSP and TES are co-located
with solar PV capacity to reduce costs and increase capacity
values. The newly completed Cerro Dominador plant in Chile is
co-located with 100 MW of solar PV, and the Spanish CSP company
Sener announced plans in 2021 to implement a hybrid plant that
incorporates CSP with molten salt storage and solar PV.37
Other hybrid concepts emerged in 2021, some of which combine
CSP and TES with other forms of storage to create longer-duration
storage, enhance flexibility or produce clean fuels. Photon Energy
(Sweden) and RayGen (Australia) announced plans to implement
a 300 MW solar plant with 3.6 GWh of energy storage using
CSP, solar PV, TES and long-duration thermal-hydro storage.38
A demonstration project in California (US) produced green
hydrogen using CSP.39
In addition to these novel combinations, a range of other research
and development (RD) activities were under way to improve
the costs, reliability and flexibility of CSP and TES systems. Many
were supported by public funds. For example, the US Department
of Energy (DOE) announced USD 39.5 million for RD on solar
PV and CSP, and the DOE’s Solar Energy Technologies Office
set a cost goal of $50 per square metre for heliostatsii
, with the
aim of bringing the CSP price to $0.05 per kilowatt-hour.40
RD
in TES was focused on high-temperature storage media such as
liquid metals.41
Global CSP market
contracted for
the first time
since 1980's .
136

i Global data for annual capacity additions and total capacity in operation in this section include all collector types: glazed (flat plate and vacuum tube collector
technology), unglazed, concentrating, air and photovoltaic-thermal (PV-T). In previous editions of the GSR, global additions and totals included only glazed and
unglazed collectors. The change is being made because formerly niche applications (concentrating, air and PV-T) are playing a growing role in some national
markets and because data availability has increased.
MARKET
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03
The global solar heat market grew 3% in 2021 to
25.6 gigawatts-thermal (GWth)i
, up from 24.9 GWth
in 2020.1
This reversal, after seven years of decline,
was the result of several factors, including rebounded demand
(particularly in China) in the wake of COVID-19 related trade
and traffic restrictions; increased construction activity in many
countries; additional support schemes under national economic
recovery policies; and rising fossil fuel and electricity prices.2
Sales grew at double-digit rates in several large solar thermal
markets including Italy (83%), France (70%), Brazil (28%),
Portugal (22%), the United States (19%), Greece and India (18%
each), Poland (17%) and Morocco (10%).3
In some large residential markets (such as Australia, Austria,
China, France, Germany and Spain), solar thermal solutions
continued to face fierce competition from heat pumps and
biomass boilers, both of which offer stand-alone solutions for
hot water and/or space heating.4
However, in some markets
(such as China, France and Spain), utility and industry demand
for large-scale solar heat projects helped offset the slowing
household demand for solar water heaters.5
The transition continued from small residential solar
thermal systems to large central procurement offers for big
construction projects and commercial and industrial plants
(such as in Austria, China and France). This resulted in
consolidation among collector manufacturers globally, as only
large producers were able to respond to the new demand
structure.6
Some of the world’s largest collector manufacturers
further consolidated their market position by receiving new
orders from smaller producers that closed their own factories
in Europe, in response to years of declining sales, and chose
to purchase collectors from large producers.7
Despite growing
sales volumes, the large equipment manufacturers increased
their prices for solar collectors and storage tanks and reduced
their margins in 2021 to meet the challenge of rapidly rising
material costs.8
By year’s end, millions of residential, commercial and industrial
clients in at least 134 countries were benefiting from solar
thermal heating and cooling systems.9
Cumulative global solar
thermal capacity in operation reached an estimated 522 GWth
in 2021, up 4% from 502 GWth in 2020.10
(p See Figure 40.) Total
global capacity in operation at the end of 2021 was enough to
provide around 427 terawatt-hours (1,537 petajoules) of heat
annually, equivalent to the energy content of 251 million barrels
of oil.11
 China remained the world’s largest market
for solar thermal capacity additions in 2021,
followed distantly by India, Turkey, Brazil and
the United States.
 Annual sales grew at double-digit rates in
several large solar thermal markets, including
Brazil, France, Greece, India, Italy, Morocco,
Poland, Portugal and the United States.
 Large collector manufacturers benefited
more than small manufacturers from the
growing market and continued to consolidate
their market positions.
 Solar industrial heat capacity under
construction was dominated by higher-
temperature systems that use concentrating
collector technologies.
KEY FACTS
SOLAR THERMAL HEATING
137

Gigawatts-thermal
Glazed
collectors
Unglazed
collectors
0
100
200
300
400
600
500
2020
2011 2012 2013 2014 2015 2016 2017 2018 2019 2021
285
285
330
330
374
374
409
409
435
435
456
456
472
472 482
482 487
487 500
500
522
522 522
Gigawatts-
thermal
World
Total
As most residential and commercial solar heat projects include a
storage tank unit, solar heat deployment plays an important role
in creating a market for thermal energy storage (TES) capacity,
which helps to integrate high shares of renewables in buildings
and industry. Assuming a minimum storage volume of 50 litres
per square metre of collector area in operation, the global solar
thermal storage capacity reached an estimated 2,620 gigawatt-
hours (GWh) at the end of 2021.12
China remained the world‘s largest national market for solar
thermal systems of all types, accounting for 73% of the cumulative
world capacity, followed distantly by the United States, Turkey,
Germany and Brazil. The top 20 countries for new additions
remained more or less the same in 2021, led by China, India,
Turkey, Brazil and the United States.13
(p See Figure 41.)
Source: Based on IEA SHC. See endnote 5 for this section.
Note: Data are for glazed and unglazed solar water collectors and do not include concentrating, air or hybrid collectors.
FIGURE 40.
Solar Water Heating Collectors Global Capacity, 2011-2021
Europe added
11% more solar
thermalcapacity
in 2021 than in 2020,
due to increased policy
support.
138

Gigawatts-thermal
0
5
10
15
20
T
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i
s
i
a
C
y
p
r
u
s
A
u
s
t
r
i
a
*
P
o
r
t
u
g
a
l
F
r
a
n
c
e
M
o
r
o
c
c
o
S
o
u
t
h
A
f
r
i
c
a
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p
a
i
n
P
o
l
a
n
d
I
t
a
l
y
I
s
r
a
e
l
*
G
r
e
e
c
e
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e
x
i
c
o
A
u
s
t
r
a
l
i
a
G
e
r
m
a
n
y
U
n
i
t
e
d
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t
a
t
e
s
B
r
a
z
i
l
T
u
r
k
e
y
I
n
d
i
a
C
h
i
n
a
Unglazed
collectors
Glazed – evacuated
tube collectors
Glazed – flat plate
collectors
1.5
-2%
+18%
+18%
0%
+28%
+19%
+19%
0%
-3%
+7%
+17%
+17%
-12%
-12%
+10%
+22%
+22%
-5%
1.5
1.25
1.0
0.75
0.5
0.25
1.5
+18%
+83%
+83%
-20%
-20%
+70%
+70%
+2%
MARKET
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TRENDS
03
TOP COUNTRY MARKETS
China’s solar thermal market ended its downward slide after
eight years of continuous decline.14
Manufacturers installed
17.7 GWth of solar thermal capacity in 2021, around the same as
in 2020.15
The market turnaround was driven by growth in central
hot water and space heating projects for the housing industry,
spurred by overall economic recovery following the pandemic-
related lockdowns.16
Across China, newly installed solar thermal capacity for space
heating (both district systems and individual buildings) increased
15%, adding a total of 2 GWth.17
The increase was due largely to
“green” heating policies aimed at replacing coal boilers in the
country’s north to improve air quality.18
The market also was
aided by industry promotional activities: for example, in the
leading solar provinces of Shandong and Jiangsu, manufacturers
of solar thermal systems offered trade-in options tied to building
renovations, which helped stimulate demand, particularly among
rural households.19
Industry consolidation in China continued in 2021, with only large
solar equipment manufacturers bidding on central procurement
offers for solar thermal equipment and large solar collector
fields.20
In reaction to the declining market volumes in recent
years, Chinese large collector manufacturers continued to expand
their portfolios into renewable heating more broadly. By the end
of 2021, half of China’s producers were offering stand-alone heat
pumps and solar heat pump solutions.21
Vacuum tube collectors continued to dominate the Chinese solar
thermal market, although their share in new additions was down
from 87% in 2015 to 72% in 2021.22
The top three companies
for vacuum tube collector production in 2021 were Solareast
Group, Linuo Paradigma and Sangle.23
The long-term transition
from vacuum tube to flat plate collectors has been driven by
building codes that mandate the use of solar thermal systems
in new construction and in major renovations to reduce local
air pollution. Such regulations have increased the demand for
façade- and balcony-integrated applications, where flat plate
collectors have been the preferred solution.24
China’s flat-plate collector sales again rose slightly (2%) in 2021,
to 5 GWth (7.11 million square metres).25
Since 2015, when the flat
plate collector market was 3.9 GWth, manufacturers have met all
of the increases in annual demand through improved utilisation
rates at existing facilities.26
In 2021, the seven largest Chinese
producers of flat plate collectors increased their combined sales
volumes by 11%, growing faster than the total domestic market for
this technology.27
The seven companies were: Solareast Group
(including the Sunrain and Micoe brands), followed by Jinheng
Solar (with its export brand BTE Solar), Linuo Paradigma, Sangle,
Fivestar, Haier and Sunte Solar.28
Note: Additions represent gross capacity added. Numbers atop bars represent the rate of growth in annual sales relative to 2020.
*Additions for Austria and Israel refer to 2020 (latest data available). For Morocco, the share of collector types was not available.
FIGURE 41.
Solar Water Heating Collector Additions, Top 20 Countries for Capacity Added, 2021
139

Across China, the
implementation of two
new national policies in
2021 spurred investments
in solar thermal projects.
The “Double Carbon”
strategy calls for China
to achieve peak carbon
emissions by 2030
and carbon neutrality
by 2060.29
As a result,
in 2021 preparation
was under way for a 77 megawatt-thermal (MWth)
solar heat field to provide space heating and snow production at a
“green” leisure park in Hebei.30
In addition, a new national building
code (to be enforced in April 2022) mandates that new buildings
in China include solar thermal, solar PV or heat pump systems.31
Among the other top countries for new solar thermal additions,
India caught up with Turkey in 2021 to rank second after China.
India‘s market grew 18% relative to 2020, to 1.35 GWth, whereas
Turkey’s sales remained stable for the third consecutive year, at
1.35 GWth.32
Neither country had financial support schemes for
solar thermal in place, so the Indian industry relied mainly on
solar building obligations, and the Turkish industry on the cost
competitiveness of solar water heaters.33
India‘s market has been driven by a solar building obligation
in place since 2007 in the state of Karnataka, where 70% of
the country’s new capacity was installed during 2021.34
India
appeared to be on track to meet its target of 14 GWth by the end
of 2022 (set by the National Solar Mission in late 2009), reaching
a total of 12.7 GWth in operation at the end of 2021.35
Vacuum tube collectors accounted for 92% of newly installed
capacity in India in 2021, up from 87% in 2020.36
This was mainly
because rising material costs (and hence higher prices) led to a
25% decline in flat plate collector sales.37
In Turkey, residential solar water heaters remained the backbone
of the solar thermal industry, whereas trends for large solar heat
applications varied. Demand grew significantly in the Mediterranean
coast tourist region, where several large systems were installed.38
The payback periods for solar thermal in the region are relatively
short due to high irradiation and a good match between hot water
demand and the high solar-yield season.39
In contrast, public
demand for central solar hot water systems in Turkish hospitals,
dormitories and prisons declined in 2021.40
Altogether, Turkey had
18.9 GWth of solar thermal capacity in operation at year’s end, or
4% of the global total.41
Among the top five countries, Brazil experienced the largest
growth in new additions (up 28%), adding 1.27 GWth in 2021.42
New solar heating systems for swimming pools (unglazed
collectors) reached 664 MWth (up 33%) as people spent more
time at home during the pandemic and invested in home
improvements.43
Annual installations of solar hot water systems
for residential and commercial consumers increased 23%,
to 609 MWth, due to growth in the construction sector as well
as rising electricity prices caused by drought-induced power
shortages and blackouts.44
Brazil continued to rank fifth globally
for total operating capacity, with 14.3 GWth by year’s end.45
The United States ranked fifth for solar thermal sales in 2021
(adding 601 MWth), bringing its total capacity in operation to
18.2 GWth.46
The country remained the second largest market for
unglazed collectors (566 MWth) after Brazil, followed by Australia
(266 MWth).47
As in Brazil, new solar pool heating systems drove
the US solar thermal market, helping to increase US additions
19% in 2021.48
Whereas in India, Turkey, and Brazil, solar water heaters
are cost-effective compared to electricity-driven hot water
solutions, in the United States and most European countries
financial incentives are still needed to reduce upfront investment
costs for solar thermal technology. This is because these latter
regions have higher equipment and labour costs, and in some
cases lower solar resources.49
Europe added 11% more solar thermal capacity in 2021 than in
2020, due to new “green heat” support schemes for buildings
and industry to support national targets for climate neutrality.50
In several European countries, demand also was driven by the
growth in new housing units.51
Altogether, an estimated 1.49 GWth
of new solar thermal capacity was added across the region, up 2%
from the pre-COVID year of 2019 (1.47 GWth).52
By the end of 2021,
Due to the growing
interest in electrification
of heating, demand for
PV-Thermal increased
45% globally
in 2021.
140

i Outdoor construction includes, for example, utility poles and power plants.
ii Funding was allocated from the European Regional Development Fund, whose purpose is to transfer money from Europe’s richer regions to invest in the
infrastructure and services of underdeveloped regions.
MARKET
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03
more than 10 million solar thermal systems, totalling 36 GWth,
were in operation across Europe, mostly in households.53
Most of
these systems include storage tanks, with an estimated 180 GWh
in combined thermal storage capacity.54
The top five European countries for new additions in 2021 were
Germany, Greece, Italy, Poland and Spain.55
Three of these
countries – Germany, Italy and Poland – have depended heavily
on subsidies in recent years.
In Germany, the world’s sixth largest solar thermal market, annual
sales were similar to 2020 (around 450 MWth), when additions
grew by 26%.56
This was despite a new national support scheme,
launched in 2020, to accelerate decarbonisation in buildings.57
The scheme drove up sales of biomass boilers (41%) and heat
pumps (28%) in 2021, but did not affect annual installations of
solar thermal systems.58
The country’s solar associations pointed
to this unequal growth in heating technologies under the policy
and called for solar thermal energy to be included among the
“privileged technologies” in German building regulations on
outdoor constructioni
.59
By year’s end, Germany reached 15 GWth
of solar thermal capacity in operation, around 3% of the global
total and 42% of the European total.60
Greece was the second largest European market, adding
more systems than ever before for a newly installed capacity
of 251 MWth.61
The drivers were the same as in previous years:
cost-competitive solar thermal systems; a national solar building
regulation that mandates a minimum 60% solar hot water for new
buildings; and the Energy Savings in Households programme,
which provides lowincome families with grants covering 60% of
the upfront investment in solar water heaters.62
Italy’s annual additions rose a record 83% to 158 MWth,
enabling the country to pass both Poland and Spain.63
This
strong growth was driven by increased construction activity
combined with a new green building policy, the “Superbonus”
for energy-efficient buildings.64
This policy, which entered into
force in February 2021, provided homeowners and housing
co-operatives with a 110% tax reduction when jumping at
least two classes in the building efficiency standard through
so-called driving measures, such as thermal insulation and
boiler replacement, including with solar thermal systems.65
In Poland, Europe’s fourth largest market, additions increased
17% to 132 MWth newly installed.66
Although this was more than in
2020, it was below the pre-COVID volume of 201 MWth installed
in 2019.67
Sales of residential solar water heaters continued to
dominate new additions, triggered by support from European
Union (EU) fundsii
.68
Increasing investor interest in hybrid systems
for space heating, including solar thermal combined with heat
pumps, provided hope for rising solar thermal demand in the
years to come.69
Spain was the only top-five European market where capacity
additions fell in 2021. Spain´s solar sales have been driven mainly
by the national technical building code (CTE) in recent years, rather
than by financial support schemes.70
However, revision of the CTE
in January 2021 resulted in a market decline of 20% for the year, to
107 MWth.71
Instead of requiring that a minimum share of hot water
demand in new buildings be met with solar thermal systems, the
revised code calls for a minimum 60-70% of hot water needs to be
supplied by renewable energy more broadly.72
As a result, the share
of new solar thermal capacity added that was driven by the CTE
declined from 87% in 2020 to 82% in 2021.73
By contrast, solar heat in Spain’s industry and service
sector received substantial support from EU funds, totalling
EUR 108 million (USD 122 million) in 2021 for 51 projects
(62 MWth in total).74
A huge increase in commercial and industrial
solar heat capacity is expected in 2022-2023, as all projects
that received grants must be in operation before June 2023.75
Industry representatives expect total installed costs to fall due
to economies of scale, standardisation of solutions and a general
maturing of the technology suppliers.76
Across Europe, flat plate collectors have dominated markets
for decades, whereas in Asia vacuum tube collectors have
represented well over half of annual additions.77
In 2021, the largest
producers of flat plate collectors in Europe were Greenonetec
(Austria), Dimas (Greece), Bosch Thermotechnik (Germany) and
Papaemmanouel (Greece).78
The region’s 10 largest flat plate
collector manufacturers increased their combined sales 21%
during the year, faster than the European market overall (11%).79
As in China, Europe’s large producers profited from market
consolidation as smaller manufacturers closed factories and
purchased collectors from larger producers instead.80
Some
European technology suppliers also took advantage of the
inability of Chinese manufacturers to supply markets in Europe
and the Americas due to high transport costs.81
For example,
Greek manufacturers, already successful global exporters,
shipped a record 582 MWth of solar thermal capacity in 2021,
up 33% from 2020.82
Greece’s export volumes nearly tripled
between 2014 and 2021, from 189 MWth to 582 MWth.83
141

i By year’s end, both Pristina and Pancevo had advanced to the feasibility study level.
Number of systems added Collector area in m2
750,000
1,125,000
375,000
1,500,000
1,825,000
3,000,000
2,250,000
2,650,000
0
20
10
40
30
60
50
70
80
Number of systems
added outside Europe
Number of systems
added within Europe
Cumulative
collector area
in operation
outside
Europe
Cumulative
collector
area in
operation
in Europe
2021
2020
2011 2012 2013 2014 2015 2016 2017 2018 2019
522
Systems
World
Total
DISTRICT HEATING
Although most of the solar thermal capacity installed globally
continued to be for water heating in individual buildings, the use of
solar thermal technology in district heating also expanded in
2021.84
(p See Figure 42) Data on completed solar district heating
systems were reported only from Europe, however, and the number
of plants brought online in the region fell slightly from 10 (totalling
33 MWth) in 2020 to 9 (totalling 23 MWth) in 2021.85
Reasons for
the decline included long planning periods, challenging permitting
processes and installation delays due to the pandemic.86
The leading solar district heating market was France, with
three systems (totalling 7.2 MWth) brought online during the
year, followed by two systems in Austria (5.4 MWth).87
Denmark,
Germany, the Netherlands and Sweden each completed one
new installation.88
Solar district heating plants also were likely
commissioned in China (as part of the newly added 2 GWth of
space heating capacity in 2021), but national statistics do not
distinguish between collector fields heating individual buildings
and those heating multiple buildings via district networks.89
Elsewhere in Europe, air quality problems and rising energy
security concerns increased interest in solar district heating,
including in the Western Balkan countries, where studies
were under way for future projects.90
The European Bank
for Reconstruction and Development, in co-operation with
Germany’s KfW bank, extended its solar district heating support
to additional cities in the region in 2021.91
By year’s end, pre-
feasibility studies were completed in Pristina (Kosovo), and in
Bor, Pancevo and Novi Sad (all Serbia)i
; these four cities aim
to generate up to a combined 170 GWth of solar heat annually.92
Three additional pre-feasibility studies were under development
to explore the potential for solar district heating plants in Korca
(Albania), Nis (Serbia) and Zenica (Bosnia and Herzegovina).93
Despite minimal additions in 2021, Denmark remained the world
leader in solar district heating capacity, with more than 1 GWth in
operation by year‘s end.94
The levelised cost of heat for solar district
heating plants in the country fell an estimated 32% between 2010
and 2019, from 6.6 US cents per kilowatt-hour (kWh) to 4.5 US
cents per kWh.95
Factors behind the cost reduction included
greater developer experience, increased competition among a
small number of project developers and economies of scale.96
The weighted-average installed cost of the six solar district
heating plants newly commissioned in Denmark in 2019 (latest
data available) was USD 409 per kilowatt-thermal (kWth),
down from USD 573 per kWth in 2010.97
In comparison, the
weighted-average total cost of the 12 solar district heating
plants commissioned in Germany between 2018 and 2020 was
USD 769 per kWth.98
Source: Based on IEA SHC. See endnote 84 for this section.
Note: Figure includes plants with collector fields of at least 350 kilowatts-thermal (kWth) (500 m2
), either for solar district heating or for solar hot water
and/or solar space heating of residential, commercial and public buildings. Data are for solar water collectors and concentrating collectors.
FIGURE 42.
Large Solar Heat Plants, Global Annual Additions and Total Area in Operation, 2011-2021
142

i The number of projects with cost-performance indicators for SHIP plants within the database for the International Renewable Energy Agency is still small.
To compare regional cost differences, values for the levelised cost of heat are averaged over a 10-year period. The values in this paragraph are based on
252 projects, or around 26% of the global SHIP market.
ii The weighted-average levelised cost of heat for SHIP plants in Asia (60 plants, mainly in India and China) was 3.9 US cents per kWh and in Mexico (81 plants)
was 4.4 US cents per kWh.
MARKET
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INDUSTRY
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03
INDUSTRIAL HEAT
In addition to generating heat for buildings, solar thermal
technologies provide emission-free heat for a large number of
production-related processes. Many industrial companies around
the world, including multinational corporations, are turning to
green heat solutions – including solar heat technologies – to
meet their social and environmental goals.99
This is important
considering that industry is among the most difficult economic
sectors to decarbonise, given the long investment cycles for new
energy infrastructure.100
By the end of 2021, at least 975 solar industrial heat plants
(SHIP), totalling more than 826 MWth, were supplying process
heat to factories worldwide.101
This heat is used for processes
including boiling, cleaning, distilling, pasteurizing, pulping, malting,
dyeing and bleaching.102
Both the installation and commissioning
of SHIP projects were delayed in 2021 due to pandemic-related
restrictions and shortages of raw material supplies.103
In all, 71
SHIP projects with a total capacity of 36 MWth came online
during the year, down from 87 projects and 93 MWth in 2020.104
The ranking of countries with the highest numbers of newly
commissioned projects changed significantly in 2021. China,
which led the SHIP world market in 2020 with 30 new plants,
reported only 7 new systems and was overtaken by Mexico, with
18 plants, followed by the Netherlands (15 plants) and Austria
(11 plants).105
The global decline in the SHIP market in 2021 is
due to this Chinese contraction; outside of China, the market
increased from 57 plants in 2020 to 64 plants in 2021.106
In
terms of capacity additions, France (10 MWth) overtook China
(8.2 MWth), followed by third place Turkey (3.8 MWth).107
Although commissioning was down during 2021, construction of
new SHIP plants accelerated, and at least 44 MWth of capacity
for 16 projects was in the pipeline by year’s end.108
SHIP capacity
under construction was dominated by higher-temperature
systems that use concentrating collector technologies: 12
concentrating heat systems totalling 32 MWth were planned
to be commissioned in 2022, up sharply from the 9 MWth of
concentrating heat capacity commissioned globally in 2021 for
both the industrial and service sectors.109
China, Mexico and India remained the key markets for SHIP
turnkey system providers.110
The leading companies involved in
the engineering and construction of SHIP facilities (ranked by
number of projects in operation by the end of 2021) were Modulo
Solar (Mexico), Solareast Group (China), Linuo Paradigma
(China), Inventive Power (Mexico) and G2Energy (Netherlands).111
For the first time, weighted-average data on the levelised cost
of heat for a large number of SHIP plants were published in
2021i
. Costs differ by country due to varying cost structures for
materials and labour and differing irradiation levels, among other
factors.112
SHIP plants commissioned in China, Mexico and India
between 2010 and 2020 produced heat for around 4 US cents
per kWhii
on average.113
This compared to an average of 6.4 US
cents per kWh in Southern Europe and 9.2 US cents per kWh
in Central Europe.114
Central Europe shows the widest range in
the levelised cost of heat over the period because, as the SHIP
market matured, small projects with relatively high costs gave
way to large projects with lower costs.115
The average installed
cost of SHIP plants in Europe dropped 68% between 2014 and
2020 (from USD 1,679 per kWth to USD 531 per kWth), due mainly
to economies of scale.116
While SHIP plants in Mexico are cost competitive with fossil
fuels, particularly liquefied petroleum gas, in many other
countries achieving competitiveness against oil and natural gas
is dependent on public funding.117
In France, the largest new SHIP
plant of 2021 (10 MWth), which came online in September at a
malting plant, received EUR 3 million (USD 3.4 million) from the
French energy agency Ademe.118
Based on this subsidy, the project
developer Kyotherm (France) was able to offer the malting plant
a solar heat price that was below what the client paid previously
for gas-produced heat. Kyotherm played a pioneering role in
operating as a solar heat energy service company (ESCO).119
The top markets for solar
industrial heat in 2021 were
Mexico,
Netherlands
and Austria .
143

Other SHIP technology suppliers have turned their attention
to heat delivery contracts, since the ESCO model reduces the
risk of the industrial heat user and speeds business decision
making because the engagement is free from capital expenditure
and does not burden the equity of the client.120
During 2021,
the Belgium company Atzeq was constructing its fourth ESCO
project, a 3.8 MWth parabolic trough collector field that will
supply steam to a chemical producer in Belgium.121
Inventive
Power (Mexico) commissioned its first ESCO project, a parabolic
trough collector facility with 332 kWth of capacity for a food
processor.122
Modulo Solar (Mexico) financed and installed two
plants (totalling 1.7 MWth) with an ESCO model to provide heat
for private swimming pools.123
The number of multi-MW SHIP plants under engineering or
construction continued to grow in 2021, driven by rising fossil
fuel prices and by financial support schemes in Europe and the
US state of California.124
The project developer NewHeat (France)
took the lead in finding industrial clients.125
It announced the start
of the construction of a 15 MWth SHIP plant for a whey powder
factory in France, supported by Ademe, and secured a grant of
EUR 4.5 million (USD 5.1 million) from the EU innovation fund for
a 20 MWth plant for a malting factory in Croatia.126
Also in Europe,
Simona Alexe – greenixcloud (Austria) carried out a feasibility
study for a 25 MWth SHIP plant for a textile company in Austria,
and an EU-funded Spanish support scheme awarded a grant
to Engie Servicios Energéticos (Spain) for a 30 MWth plant at
a brewery.127
For comparison, the largest SHIP plant already in
operation in Europe at year’s end was a 10.5 MWth facility for an
agricultural business in the Netherlands.128
California’s Food Production Investment Program, established
in 2018 to encourage food producers in the state to reduce
greenhouse gas emissions, awarded grants totalling USD 13 million
to four SHIP plants with a combined capacity of at least
22.6 MWth.129
The largest US solar steam producing system
(2.3 MWth) was commissioned in early 2021 at an almond
processor.130
Atyear’send,twoothersolarsteamproducingsystems
for dairies (8.4 MWth and 11.9 MWth) were under construction,
and the fourth SHIP plant (also for a dairy) was in the planning
phase.131
The four grants supported the business development of a
new generation of US-based concentrating solar heat technology
suppliers: Hyperlight Energy, Sunvapor and Skyven Energy.132
OTHER DEVELOPMENTS
Leading developers of all types of solar heat plants are using
stock markets to gain additional capital to pre-finance project
development costs.133
In 2021, Tigi (Israel) started trading shares
in the cleantech sector of the Tel Aviv Stock Exchange, raising
around USD 10 million.134
Heliogen (US) successfully raised
USD 415 million in the run-up to its initial public offering
in December 2021 by using a special purpose acquisition
company.135
Savosolar (Finland), listed on Nasdaq Nordic since
2015, gained up to EUR 5.4 million (USD 6.1 million) by rights
issues in 2021.136
Prior to 2021, only Savosolar and three other solar
thermal manufacturers were listed on stock markets globally.137
Due to growing interest in the electrification of heating, demand
for photovoltaic-thermal, or hybrid collectors, increased again
in 2021. PV-T collectors consist of a thermal absorber below a
solar PV module and deliver both electricity and thermal energy
that can be used as a flexible energy source for heat pumps in
buildings.138
During the year, 30 manufacturers reported sales of
PV-T capacity of at least 88 MWth (connected to 31 MW electric),
up 45% from 61 MWth in 2020.139
The largest markets for new PV-T additions (by capacity added)
were France, the Netherlands, Israel, Germany and Spain.140
France achieved the highest annual growth with nearly six times
more PV-T capacity added in 2021 (68 MWth) than in 2020.141
Within the country, the popularity increased of both PV-T air
solutions for space heating and unglazed PV-T collectors as the
heat source for heat pumps.142
In all key markets, demand among
residential and commercial clients has been driven by the ability
to produce both heat and electricity from the same roof space,
thus generating a higher yield per area.143
Innovative business
models such as
heat delivery
contracts
attracted new customers.
144

i Additions are gross (although only a few countries decommissioned
significant amounts of capacity in 2021) and were not necessarily all
grid-connected at year’s end. See endnote 1 for this section.
Gigawatts
1,000
800
600
400
200
0
238
238
283
283
319
319
370
370
433
433
488
488
540
540
591
591
650
650
745
745
845
845
2016
2015
2014
2013
2012
2011 2020
2017 2018 2019 2021
Annual additions
Previous year‘s
capacity
845
Gigawatts
World
Total
+102
+95
+61
+51
+54
+55
+64
+52
+36
+45
+41
MARKET
AND
INDUSTRY
TRENDS
03
OVERVIEW
An estimated 102 gigawatts (GW)i
of wind power
capacity was installed globally in 2021 – including
more than 83 GW onshore and almost 19 GW offshore.1
Total
additions were up around 7% relative to 2020 to the highest level
to date, with annual offshore installations almost three times their
previous high.2
By year’s end, total global wind power capacity
rose 13.5% over 2020 to surpass 845 GW (791 GW onshore and
the rest offshore).3
(p See Figure 43.) Wind power capacity in
operation around the world contributed an estimated 7% of
total electricity generation in 2021.4
Global additions onshore were down relative to 2020 as land-
based installations declined in China and the United States;
offshore, the explosive increase in capacity added was due
largely to a dramatic policy-driven rise off the coast of China.5
Nearly every region saw record annual additions in 2021.6
Not
including China, global installations were up more than 14% over
2020.7
New wind farms reached full commercial operation in
at least 55 countries, up from 49 in 2020, and at least one
country, Saudi Arabia, brought online its first commercial project
(0.4 megawatts, MW).8
 The global wind power installed capacity grew
by 102 GW in 2021, again led by China. Onshore
additions fell relative to 2020 and offshore
additions surged to new highs, driven largely by
policy changes in China and the United States.
Not including China, annual global installations
rose more than 14%.
 The offshore wind sector attracted increasing
attention from governments, project developers,
oil and gas majors and other energy providers.
By one estimate, the offshore wind power
pipeline reached 517 GW by early 2022.
 Rising costs due to supply chain constraints,
labour shortages, shipping backlogs and rising
raw material prices compounded ongoing
challenges, including a lack of grid infrastructure
and permitting. Outside of China, average
turbine prices reached levels not seen since
2015, and the industry is urging greater focus
on the system value of wind energy rather than
solely on continually declining costs and prices.
KEY FACTS
WIND POWER
Source: Based on GWEC. See endnote 3 for this section.
Note: Totals may not add up due to rounding. Additions in 2021 are gross, but bar heights and numbers above bars reflect year-end totals.
FIGURE 43.
Wind Power Global Capacity and Annual Additions, 2011-2021
145

i For example, annual installations must scale up to 390 GW (310 GW onshore and 80 GW offshore) by 2030 according to the net zero 2050 roadmap of the
International Energy Agency. See endnote 12 for this section.
ii In addition to expense and complexity, challenges include the large number of permits required for an individual project, under-resourced permitting
authorities, lack of guidance, local opposition and legal challenges, and unclear land ownership titles. See endnote 15 for this section.
iii China leads the world for turbine components and dominates the processing and refining operations of rare earth, copper, nickel and other minerals that are
critical for wind turbine manufacture. See endnote 24 for this section.
iv Wind power remained cost competitive with fossil fuels due to rising prices for the latter; in contrast to the wind power industry, however, fossil fuel generators
saw record profits in 2021. See endnote 25 for this section.
The economics of wind energy continued to be the primary driver
for new installations, combined with the need to increase energy
security and to mitigate climate change.9
Outside of China’s
offshore market (driven by an expiring feed-in tariff, or FIT) and
the United States (with tax credits and state renewable portfolio
standards), global demand for wind power in 2021 was driven
largely by China’s onshore grid parity scheme and by other policy
mechanisms including auctions (or tendering).10
Power purchase
agreements (PPAs) are playing a growing role thanks to the cost
competitiveness of wind energy.11
However, the wind sector faces a number of challenges. In the
longer term, these include a shortage of sites with good wind
resources and proximity to grid connections; the fact that the
large scale of today’s turbines is pushing the industry to the limits
of current turbine design; and the need for turbine manufacturing
and installation to scale up dramatically for wind energy to play a
significant role in mitigating climate changei
.12
Massive increases
in manufacturing and installation will require not only a large
ramp-up in production capacity and trained labour, but also
procurement of vast quantities of minerals and other material
inputs alongside extensive actions to minimise the associated
negative social and environmental consequences.
Other significant challenges are the lack of grid infrastructure,
which is unavailable or outdated in many locations, and
permitting, which can be an expensive, complex and time-
consuming process.13
One study estimates that the average
permitting process globally takes 29 months and, combined with
other lengthy administrative processes, results in an average
project-planning process of more than five years; this compares
with only several months required to construct a wind farm.14
In some cases, permitting challengesii
have begun to deter
investment, and there is growing concern that they are a key
factor slowing the energy transition.15
The shift to auctions and gradual removal of support schemes,
which have focused the industry on price reductions, have
helped spur technological innovation and efficiencies that
reduced costs throughout the wind power value chain over the
years, and the cost of capital has declined due to low interest
rates and growing investor confidence.16
These factors have
helped make wind energy competitive with fossil fuels.17
But the
race to the bottom on price is disincentivising investment, and
price declines are levelling off, with fewer opportunities remaining
to reduce costs without further sacrificing profits, even as shifts
to more-sustainable business practices could raise some costs.18
Ever-larger turbines already have driven up associated transport
and logistics costs.19
In 2021, such challenges were compounded by pandemic-
induced supply chain constraints, labour shortages and shipping
backlogs, as well as rising prices for major raw material inputs
(e.g., steel, aluminum, copper, resins, fibreglass), components,
and energy, while project delays affected turbine orders and
interest rates began to rise after several years of decline.20
These
forces have added pressure when margins were already tight,
with turbine manufacturers squeezed between high costs and
developers that want cheaper turbines.21
As a result, the largest manufacturers outside of China raised
their turbine prices, with 2021 marking the largest price increase
in a decade.22
By contrast, Chinese turbine prices reportedly
declined 24% during the year.23
The decline was due to a
combination of fierce domestic competition to gain market
share during China’s transition to an era of grid parity, and the
ease of supply chain control and lower input costs in the world’s
largest manufacturing hubiii
.24
Outside of China, average turbine
prices rose to levels not seen since 2015, reversing several years
of declineiv
.25
Despite record turbine orders and annual revenue
highs in most cases, the margins reported by Nordex Acciona
(Germany), Siemens Gamesa (Spain) and Vestas (Denmark) fell
an average 7.7 percentage points relative to 2020, and GE (United
States) reported heavy losses for the year.26
Against such challenges, the industry (at least outside of China)
is increasingly expressing the need to focus on the system value
that additional wind energy can bring – as well as on factors
related to sustainability of projects and citizen participation,
and on ensuring that projects are actually realised – rather than
focusing solely on continually falling costs and prices.27
146

i The top 10 markets in 2020 were China, the United States, Brazil, the Netherlands, Spain, Germany, Norway, France, Turkey and India.
ii The top 10 countries for cumulative capacity at the end of 2021 were China, the United States, Germany, India, Spain, the United Kingdom, Brazil, France,
Canada and Sweden, with Brazil moving ahead of France and Sweden replacing Italy.
iii Without the FIT mechanisms, China’s wind power projects receive the regulated price for coal-fired generation in each province.
iv Statistics differ among Chinese organisations and agencies as a result of what they count and when. See endnote 38 for this section.
v Note, however, that Goldwind (China) is the majority owner of the German-based company Vensys, which has manufactured turbines outside of China for
several years. See endnote 42 for this section.
Gigawatts
+15.0
+15.0
+13.4
+13.4
+2.6
+2.6
+3.5
+3.5
+2.1
+2.1
+1.9
+1.9
+1.7
+1.7
+1.5
+1.5
+1.4
+1.4
+3.8
+3.8
400
320
240
160
80
0
80
60
40
20
80
80
Added in 2021
2020 total
T
u
r
k
e
y
I
n
d
i
a
A
u
s
t
r
a
l
i
a
G
e
r
m
a
n
y
S
w
e
d
e
n
U
n
i
t
e
d
K
i
n
g
d
o
m
V
i
e
t
n
a
m
B
r
a
z
i
l
U
n
i
t
e
d
S
t
a
t
e
s
R
e
s
t
o
f
W
o
r
l
d
C
h
i
n
a
+55.9
+55.9
MARKET
AND
INDUSTRY
TRENDS
03
TOP MARKETS
For the 13th consecutive year, Asia (mostly China) was the
largest regional market, representing around 61.4% of added
capacity (up from nearly 60% in 2020).28
Most of the remaining
installations were in Europe (15.6%), North America (13.8%) and
Latin America and the Caribbean (5.7%).29
China was followed
distantly by the United States, which was well ahead of Brazil,
Vietnam and the United Kingdom; these five countries together
accounted for more than 77% of annual installations.30
Other
countries in the top 10i
for total capacity additions were Sweden,
Germany, Australia, India and Turkey.31
To rank among the top
10, annual installations of at least 1.4 GW were required, up from
1.1 GW in 2020.32
After remaining unchanged since 2014, the list of
the 10 leading countriesii
for cumulative capacity changed in 2021
as Sweden was added and Italy dropped off.33
(p See Figure 44.)
China’s total wind power installations were up nearly 2.8% in
2021 to a new record high, and the country accounted for more
than half of global additions.34
Land-based additions declined
more than 18% relative to 2020, following a rush to install onshore
projects, which had to be grid-connected before the end of 2020
to receive the expiring national FITiii
.35
At sea, an upsurge in
additions in 2021 resulted from a race to connect projects before
the offshore FIT expired at year’s end.36
The estimated 55.9 GW (41.4 GW onshore and 14.5 GW offshore)
added in 2021 brought China’s total wind power capacity to an
estimated 346.7 GW.37
Around 47.6 GW of this was integrated
into the national grid, with most of it (61%) in the more populated
central, eastern and southern regions, for a total of 338.3 GWiv
considered officially grid-connected by year’s end.38
Overall,
China’s utilisation rate of wind power averaged 96.9% in 2021,
up slightly from 2020.39
Wind generation was up 40.5% and
accounted for 7.9% of total electricity production (up from 6.1% in
2020 and 5.5% in 2019).40
Chinese turbine manufacturers account for around half of
global manufacturing; most of their turbines continue to be
installed domestically, but declining demand onshore in China
is causing manufacturers to turn to markets elsewhere, while the
competitive pricing and technological improvements of Chinese
turbines are attracting increased international interest.41
MingYang
was the first Chinese turbine manufacturerv
to announce plans to
build factories in Europe.42
By one estimate, six of the world’s top
10 turbine producers in 2021 were based in China; the remaining
four were Vestas (Denmark), Siemens Gamesa (Spain), GE (US)
and Nordex Group (Germany).43
Outside of China, the top five
manufacturers accounted for an estimated record 93-95% of
market share, continuing several years of consolidation.44
Note: Numbers above bars are gross additions, but bar heights reflect year-end totals. Net additions were lower for Germany (1.7 GW) and for the United
States (12.9 GW), due to decommissioning. Totals may not add up due to rounding; numbers for Rest of World are rounded to nearest GW.
FIGURE 44.
Wind Power Capacity and Additions, Top 10 Countries, 2021
147

i The PTC gives wind energy generators a tax credit of roughly USD 0.024 per kilowatt-hour for electricity fed into the grid. 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 2020 and
again in 2021; in December 2020, the PTC was legally extended for a further year at 60% of the full credit rate. Projects had to qualify for the tax credit by
31 December 2021; those that did have a four-year safe harbour window to commission. As of early 2022, the PTC had expired but negotiations were
ongoing in the US Congress regarding further extension.
The United States again ranked second globally for capacity
additions and year-end total, with 13.4 GW (net 12.9 GW, all
onshore) installed during 2021, for a total of 135 GW.45
US
installations were at their second highest level ever but were
down more than 20% relative to the record additions of 2020.46
Progress was slowed by several factors, including supply chain
and trade constraints, logistics challenges, interconnection
queues and rising costs, all of which affected the economics of
projects.47
Uncertainty about the policy environment also delayed
investment; most significantly, the federal production tax credit
(PTC) was extended only at the end of December 2020 for
projects that began construction by the last day of 2021i
.48
To offset supply chain constraints and cost inflation, and to adjust
for the step-down in value of the PTC, developers in the United
States sought higher prices; wind PPA prices increased 19.2%
on average relative to 2020.49
By year’s end, the US pipeline of
new projects included 23.9 GW of capacity onshore and 17.5 GW
offshore, with the latter driven mainly by state procurement
targets.50
Wind energy accounted for 9.1% of US utility-scale
electricity generation in 2021, up from 8.4% in 2020.51
The third ranking country for newly installed capacity was
Brazil, which represented nearly 66% of additions in Latin
America and the Caribbean.52
Despite challenges during the
year due mostly to the COVID-19 pandemic, Brazil’s market
was up more than 60% relative to 2020, with 3.8 GW installed
(all onshore) for a total of 21.6 GW.53
This growth resulted from
several factors, including rising electricity demand (up 4.1% in
2021) and economic recovery.54
The increased use of private
auctions and bilateral PPAs also helped drive the record
additions.55
Wind energy generated more than 72 terawatt-
hours (TWh) of electricity (up more than 26%) and was Brazil’s
second largest source of electricity generation in 2021, after
hydropower, accounting for 11.5% of the mix.56
Although none of Brazil’s capacity to date is operating off
the country’s 7,500-kilometre coastline, in early 2022 the
federal government published laws governing offshore wind
power projects; already, several companies including Shell
(Netherlands) have plans for a strong presence in Brazil’s
offshore sector.57
Vietnam was among the top 10 markets for the first time, ranking
fourth globally in 2021. Driven by the looming expiration of the
national FIT, Vietnam’s annual installations soared many-fold over
2020 additions (0.1 GW), approaching 3.5 GW (2.7 GW onshore
and nearly 0.8 GW offshore), for a year-end total of 4.1 GW.58
The national government has supported renewable energy
(particularly wind power and solar PV) to reduce fuel imports and
ensure energy security while also enabling the country to meet
rapidly rising electricity demand.59
As of early 2022, Vietnam’s FIT
for wind energy was expected to be extended from 2021 to the
end of 2023; a draft of the country’s Power Development Plan 8
(for 2021-2030), released in 2021, included new capacity targets
(18 GW of wind power by 2030) and prioritised improvements in
grid infrastructure.60
The record installations in Vietnam were achieved despite
ongoing challenges including pandemic-related supply chain
disruptions, a lack of capital, and weak grid capacity, with some
of the country’s transmission lines operating at full load or even
overloaded (particularly where solar PV capacity is high).61
In response to such grid constraints, Vietnam’s government
decided against approving any new wind (or solar PV) capacity
in 2022.62
After not even making the global top 10 list in 2020, the United
Kingdom ranked fifth worldwide in 2021, followed by Sweden
(sixth globally) and Germany (seventh).63
The United Kingdom
regained its spot as the lead European installer, adding 2.6 GW
for a total of 26.8 GW (14.1 GW onshore and 12.7 GW onshore).64
Vietnam
joined the top 10 for
the first time as annual
installations soared
many-fold to nearly
3.5 GW.
148

i The 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 Proposed changes were first announced in January and an expanded package was approved in April 2022.
iii The share of electricity demand met by wind energy across the EU and the United Kingdom in 2021 was about the same as in 2019 and 1.4% below 2020,
despite capacity additions, due to a resurgence in electricity demand (following the pandemicrelated decline in 2020) and lower generation in several
countries. The lowest average generation occurred in September, coinciding with a steep increase in electricity prices; some blamed the price increase on
wind power but, according to one source, evidence shows it was mostly due to high gas prices. See endnote 95 for this section.
MARKET
AND
INDUSTRY
TRENDS
03
Although UK additions were up more than four-fold relative to
2020, they were well below the 2017 high of 4.5 GW.65
Most new
capacity was put into operation offshore (see later discussion);
onshore additions (0.3 GW) were nearly triple those in 2020
but represented the second lowest UK onshore additions since
2005.66
Onshore deployment has stalled in recent years due to a
lack of policy support, with all commissioned projects deployed
through PPAs or on a merchant basis.67
However, after excluding
onshore wind power from the Contracts for Difference (CfD)i
auctions for several years, in December 2021 the UK government
launched the fourth CfD round to expand investment in renewable
energy, including both onshore and offshore wind.68
Europe as a whole placed second after Asia for regional share
of new global installations, with nearly 16 GW added (up more
than 18% over 2020) for a total of 225 GW.69
Commissioning of
new projects across Europe continued to be delayed by global
supply chain issues and permitting bottlenecks.70
The top five
European countries for capacity additions – the United Kingdom,
Sweden, Germany, the Netherlands (1.3 GW) and France (1.2 GW)
– accounted for almost 58% of the region’s total (down from
60.6% for the top five in 2020).71
While representing relatively small
portions of total installations, Croatia, Denmark, Finland and the
Russian Federation each added record amounts of new capacity.72
Most new capacity in Europe outside of the United Kingdom was
installed in the European Union (EU), where 11 GW came online,
mostly onshore (10 GW, or 91%), for a year-end total of 188.9 GW
(173.3 GW onshore and 15.6 GW offshore).73
Across the EU-27,
18 countries added capacity during 2021, compared with 17 the
previous year.74
However, total installations were up only slightly
over the 10.5 GW added in 2020.75
According to one estimate, the
EU needs to install 32 GW annually to achieve the region’s target
to meet 40% of its final energy consumption with renewable
sources by 2030.76
Sweden led the EU for new installations in 2021, up from fifth
place regionally in 2020, and ranked sixth globally.77
A record
2.1 GW came online, more than double the previous year’s
installations, for a total of 12.1 GW (all onshore).78
Wind energy
generated 27.4 TWh in 2021, accounting for around 16.5% of
Sweden’s total electricity generation.79
There is evidence that
wind energy is reducing average annual electricity rates in the
country’s south.80
However, challenges to further growth include
the need to modernise and expand Sweden’s electric grid and to
simplify the permitting process.81
As in 2020, Germany ranked third in Europe for newly installed
capacity; globally, the country fell from sixth to seventh place,
despite an increase in annual installations.82
Germany’s additions
rose more than 15%, to 1.9 GW (1.7 GW net, all onshore), for
a year-end total of 63.8 GW (56.1 GW onshore and 7.7 GW
offshore).83
Onshore installations were up in 2021 thanks to a
slight improvement in the permitting situation, but continued
to be far below the volumes added during 2012-2017, as well as
below government commitments for the decade.84
The additional
capacity was not enough to make up for poor wind conditions
during the year; wind energy generation (113.8 TWh) was down
14% relative to 2020, and accounted for 20% of Germany’s
Throughout the year, Germany’s auctions for new onshore
capacity were undersubscribed, due largely to state-level
permitting challenges, as well as a decline in diversity of actors
and investors.86
However, a mid-year auction was the country’s
first onshore wind tender since December 2017 to award more
than 1 GW.87
Other EU countries (including Denmark, France,
Italy and Poland) have seen undersubscription in wind-specific
auctions and strong competition from solar PV in technology-
neutral auctions for a variety of reasons, including low ceiling
prices and permitting challenges.88
In early 2022, the German government announcedii
targets
to increase offshore wind power capacity to 30 GW by 2030,
40 GW by 2035 and 70 GW by 2045; onshore, the government
plans to add 10 GW of new capacity annually starting in 2025.89
To achieve the onshore target, the plan calls for increasing the
number of auctions, streamlining permitting procedures and
dedicating 2% of Germany’s land area to wind generation.90
In addition, community wind power projects up to 18 MW will
be exempt from the auction scheme.91
At the state level, there
are efforts to increase local participation in project earnings to
improve public acceptance of new wind farms.92
At year’s end, Germany continued to lead Europe for total
wind power capacity, followed by Spain (28.2 GW), the United
Kingdom (26.8 GW), France (19.1 GW) and Sweden (12.1 GW).93
These countries together accounted for nearly 67% of the region’s
total.94
For the EU and United Kingdom combined, wind energy
met around 15% of electricity demandiii
, with far higher shares in
Denmark (44%) and Ireland (31%), and 20% or more in Portugal,
Spain, Germany and the United Kingdom.95
Australia installed enough capacity in 2021 to join the global
top 10 for the first time, ranking eighth. For the third consecutive
year, Australia saw records for both installations and output,
adding 1.7 GW for a total of 9.1 GW (all onshore).96
Wind power
remained Australia’s largest source of renewable electricity,
producing 26.8 TWh (up 18.5% from 2020), or 11.7% of the
country’s total generation.97
The relative increase in capacity
additions was due at least in part to the commissioning of
projects that were under construction for some time and had
faced delays.98
Despite pandemic-related uncertainties and
relatively low wholesale electricity prices, corporate PPAs
with buyers that have set sustainability targets continued to
represent an important source of investment for new projects.99
149

i An auction in which suppliers that meet certain minimum criteria can submit non-negotiable price bids, and the buyer selects winners based on lowest-
priced bids first.
ii Turbine manufacturers operating in India are shifting their focus overseas while developers are moving away from auctions and long-term PPAs to options
that fetch better energy prices – through direct sales to commercial and industrial customers and sales via the Indian Energy Exchange. See endnote 109
for this section.
However, several factors have slowed new investment in Australia’s
wind sector, including grid congestion and a need for more
transmission infrastructure, local resistance, a drop in wholesale
electricity prices in recent years and declining availability of
premium wind sites.100
There also has been an ongoing lack of
clarity at the federal level regarding relevant regulations and climate
change policy.101
State governments, however, have moved ahead
with plans to establish renewable energy zones – encompassing
new grid infrastructure alongside wind, solar and storage projects
– which have provided optimism for future investment.102
In
addition, Australia passed national legislation in 2021 to allow for
the installation and operation of wind turbines offshore; as of early
2022, nearly 20 projects had been announced.103
India also ranked among the world’s top 10 countries for additions
in 2021, rising one step to place ninth. Nearly 1.5 GW was
installed, representing a 30% increase over 2020 additions, for a
total approaching 40.1 GW (all onshore).104
As in Australia, India’s
increase was due largely to the commissioning of previously
delayed projects.105
COVID-19 had significant impacts across
the Indian economy, with supply chain and labour challenges
affecting wind power installations; a temporary decline in
electricity consumption also stalled some deployment.106
Wind-only tenders in India saw strong competition, with all
capacity awarded and the lowest bid prices in some tenders
down relative to 2020.107
However, since installations peaked
in 2017 (4.1 GW) and India shifted from FITs to tendering via
“reverse auctionsi
”, the country has tracked well behind national
targets for annual installations, while the number and diversity
of local investors in India’s wind power sector has declined and
installations have become more concentrated geographically.108
As of early 2022, only around a quarter of the capacity awarded
under auctions since 2017 had been commissioned, and several
companies that had been awarded PPAs through auctions
surrendered capacity due mainly to low tariffs and rising costsii
.109
India continues to target 60 GW of wind power capacity by 2022
and 140 GW by 2030.110
Other longer-term challenges to deployment in India include
the high cost of capital as well as challenges related to grid
connection, permitting and land acquisition for projects.111
As
in several other countries, many of India’s best wind sites are
already in use, and the country is seeing increasing conflicts over
land – large wind (and solar) power projects require large parcels,
often leading to development on common land used previously
by local communities, for example.112
Land rights issues are on the
rise elsewhere around the world as well.113
Ranking tenth globally was Turkey, which added a record 1.4 GW
(just above the previous high in 2016) for a total of 10.8 GW, all
operating onshore.114
Wind power contributed more than 9.8%
of total electricity generation and accounted for half of Turkey’s
new power generating capacity in 2021.115
Market growth was
reportedly due to a rush to qualify for the country’s foreign
currency-based incentive scheme (YEKDEM), which expired at
year’s end.116
Turkey is working to expand its renewable energy capacity
to lessen its heavy reliance on imported fuels, create jobs and
reduce the country’s carbon footprint, all while meeting rapidly
rising energy demand.117
Over the past decade, Turkey has
developed a strong industry supply chain, including production
facilities of both domestic and foreign manufacturers, while
increasing wind power capacity 10-fold.118
By late 2021, the cost
of new installations in Turkey averaged 32% lower than five
years earlier, and generation from new wind power capacity was
cheaper than that from existing (imported) coal, even excluding
a carbon price.119
Wind turbines operating
offshore accounted for
more than
18.2%
of all newly installed
global wind power
capacity in 2021.
150

i The low level of installations in 2020 was due to a gap in execution of projects under the first and second rounds of the UK CfD. See endnote 129 for this section.
ii Although the target is not set in law, the Biden administration announced in early 2021 that it aimed for the United States to achieve 30 GW of offshore
wind power capacity by 2030. In addition, new official targets were set at the state level in 2021 and early 2022. See endnote 139 for this section.
iii By one estimate, the use of floating turbines can triple the size of the potential market. See endnote 142 for this section.
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OFFSHORE WIND
In the offshore wind power segment, four countries in Europe
and three in Asia added a record 18.7 GW in 2021, well above
the 6.9 GW connected in 2020, increasing cumulative global
offshore capacity to 54.8 GW.120
Wind turbines operating offshore
accounted more than 18% of all newly installed global wind
power capacity in 2021 (up from 6.5% in 2020 and the previous
high of 10% in 2019) and represented nearly 6.5% of total
capacity at year’s end (4.7% in 2020).121
China led the sector for
the fourth year running, home to more than 77% of new capacity,
and Europe and Vietnam installed nearly all the rest.122
China added 14.5 GW in 2021, nearly four times its record offshore
additions of 2020, as developers rushed to commission projects
before the national FIT expired at year’s end.123
Total offshore
capacity more than doubled to nearly 25.4 GW, propelling the
country well ahead of the long-term leader the United Kingdom.124
China’s offshore industry has become an important driver of
regional economic growth.125
Other countries in Asia that added
capacity were Vietnam (0.8 GW, intertidal), propelled by an
expiring FIT to rank third worldwide for offshore additions, and
Chinese Taipei (0.1 GW).126
Europe connected 3.3 GW of new capacity to the grid, bringing
the regional total to 28.3 GW.127
Most of these installations were
in UK waters (2.3 GW), including the world’s largest operational
floating wind farm, the 48 MW Kincardine project off the coast
of Scotland.128
UK installations jumped sharply following a slow
year in 2020i
; however, there was concern that changes to the
country’s bidding system, which requires investors to pay upfront
“option fees” for the right to develop projects, will raise future
costs of offshore wind energy.129
Annual installations will need
to rise significantly to meet an accelerated UK target (50 GW
by 2030) set in April 2022 as part of a national energy security
strategy.130
Denmark followed with a record 0.6 GW; the only other European
countries to add offshore capacity were the Netherlands (0.4 GW)
and Norway, which commissioned a 3.6 MW TetraSpar floating
demonstration project.131
At year’s end, five countries continued to
host nearly all of Europe’s offshore capacity: the United Kingdom
(45%), Germany (27%), the Netherlands (10.5%), Denmark and
Belgium (each 8%).132
Also in 2021, construction began on the first commercial wind
projects in several European countries (France, 976 MW; Italy,
30 MW; Norway, 88 MW floating project) as well as off the coast
of Japan (140 MW).133
The United States broke ground on its
first commercial-scale project, the 0.8 GW Vineyard Wind Farm,
followed in early 2022 by another large project, and had a record
year for solicitations (8.4 GW); as of early 2022, nine US states
had set offshore procurement targets totalling 44.6 GW.134
By year’s end, 18 countries (12 in Europe, 5 in Asia and 1 in North
America) had offshore wind capacity in operation, unchanged from
2019 and 2020.135
China led the world for total capacity (25.4 GW),
followed distantly by the United Kingdom (12.7 GW), Germany
(7.7 GW), the Netherlands (3 GW), Denmark and Belgium (both
around 2.3 GW).136
Asia (mostly China) was home to around 48.6%
of global offshore capacity, and Europe hung onto the regional lead
with 51.3% of the total (down from 70% in 2020).137
Although the offshore segment accounts for a relatively small
portion of global wind power capacity, it is attracting significant
attention due to new government targets and other commitments
driven by energy security and climate change concerns.138
During
2021, new targets were set and projects planned in existing
markets in Asia, Europe and North Americaii
, and in new markets
(e.g., Australia and Brazil).139
According to one analysis, the global
pipeline for offshore wind reached 517 GW as of early 2022.140
Several countries also launched roadmaps in 2021 and early
2022, including Colombia, the Philippines and Turkey.141
An increasing number of governments and developers are
turning to floating offshore turbines. Floating turbinesiii
can go
where nearshore waters are too deep for fixed-bottom machines
and can take advantage of stronger, more consistent winds
farther from shore, rather than being sited where the sea floor
topography is suitable, meaning that public resistance is lower
and capacity factors are higher.142
They require fewer construction
materials than fixed-bottom turbines and need no marine
engineering expertise for assembly.143
Most projects to date have
been prototypes or pilots, but the industry is considered ready to
scale, with development in the pre-commercial phase.144
151

i This target was increased to 5 GW in early 2022, as part of the United Kingdom’s 50 GW by 2030 offshore wind power target. See endnote 146 for this section.
During 2021, governments around the world were looking
to develop floating technology and projects, and leading
international offshore developers and investors were launching
projects.145
China’s first floating machine, a 5.5 MW pilot anti-
typhoon turbine, was commissioned during the year, Japan held
a tender for its first floating project, and the United Kingdom
announced funding to support technology development and set
a target for 1 GWi
of floating capacity by 2030.146
Also in 2021,
the Republic of Korea announced plans to build a 6 GW project
by 2030, and the United States announced plans to deploy
floating turbines in waters off the US west coast.147
The top five
countries for cumulative capacity at the end of 2021 were the
United Kingdom, Portugal, Japan, Norway and China.148
Oil and gas majors, fossil fuel service providers and utility
companies have shown increasing interest in offshore wind power,
particularly floating technologies and projects.149
They are driven
in part by growing pressure to reduce their carbon emissions and
are attracted by the potential for hydrogen production, while also
being able to deploy their existing skills and experience.150
The
potential for wind energy (generated both offshore and onshore)
to produce hydrogen also is sparking interest among other large
energy consumers, including the metal manufacturing and
mining industries.151
(p See Snapshot Argentina.)
TECHNOLOGY AND INFRASTRUCTURE
Manufacturers of turbines for use onshore and offshore
continued to focus on technology innovation in 2021. The
industry has been compelled to continuously reduce costs and
achieve the lowest possible levelised cost of energy (LCOE) in
response to the transition to auctions as well as rising material
costs and other pressures.152
The industry also is innovating
to address challenges associated with scaling up production,
transport and other logistical issues as well as to enhance the
value of wind energy while further improving its environmental
and social sustainability.153
Turbine size continued to increase (e.g., capacity, rotor diameter,
hub height) in order to optimise cost and performance.154
In
2021, the average size of turbines delivered to market passed
the milestone of 3.5 MW, 27% larger than in 2020 (2.81 MW).155
Further, new machines with power ratings ranging from 6 MW to
more than 7 MW were introduced for use onshore, while several
European and Asian manufacturers announced new offshore
turbines in the 11-16 MW range.156
Larger, higher-efficiency turbines mean that fewer turbines,
foundations, converters and cables, and less labour and other
resources, are required for the same output, translating into faster
project development, reduced risk, lower costs of grid-connection
and operation and maintenance (OM), and overall greater yield,
all important for the offshore sector in particular.157
Between
2010 and 2020, global weighted average capacity factors rose
by nearly a third (to 36%) for onshore wind, while driving down
the LCOE.158
Offshore, average capacity factors during 2021 of
UK projects in the North Sea ranged from 33.5-36% for projects
commissioned in 2010, to 50% and higher for projects that began
operations during 2018-2020.159
As turbines get larger, they are pushing the limits of what
is possible in terms of voltage, manufacturing, and logistics
of transport and installation.160
Increasingly, there is a focus
on using medium- (rather than low-) voltage converters
to deal with higher currents of large offshore machines.161
Manufacturers also are moving towards production of
modular and customisable designs: in 2021, for example,
Vestas announced a modular nacelle to ease turbine siting,
transport, project construction and OM.162
Such modularity
can enable increases in the ratings of very large machines
without installing new ones, reducing associated costs and
environmental impacts.163
152

i Approximately 85-90% of a wind turbine’s mass comprises easily recyclable materials (such as steel, cement, copper, electronics and gearing), but the
composite materials that make blades relatively light and aerodynamic are difficult and costly to recycle.
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03
Offshore, as machine sizes grow and projects move farther to
sea and into deeper waters, and as the number and locations
of developments increase, more and larger vessels are required
to transport and install wind turbines.164
As of early 2021, only
around 50 vessels were equipped for installing offshore turbines,
with most located off mainland China and the rest mainly in
northern Europe.165
Several companies announced plans during
the year to build new vessels or modify existing ships to handle
larger machines.166
Also in 2021, the United Kingdom and the EU announced plans
to increase investments in specially designed ports to handle
ever-larger offshore turbines and to accelerate manufacturing
capacity for domestic and export markets.167
China saw
significant improvements in transport and installations for the
offshore sector, and, at year’s end, all of the country’s coastal
provinces had five-year plans to develop industrial parks and
advance the supply chain for deployment of turbines offshore.168
In the United States, which continues to lag behind Europe
and parts of Asia in offshore supply chains and associated
infrastructure (e.g., manufacturing facilities, dedicated ports,
service vessels, rail links and grid connections), a number of
private entities as well state and federal governments committed
to developing the necessary infrastructure, particularly along
the Atlantic coast.169
Innovation in the industry also continued to focus on making
wind energy fully sustainable, and in a way that is cost-
effective in order to remain competitive.170
Initiatives to reduce
emissions associated with turbine production and installation
have included redesigning the logistics network and shifting to
cleaner sources of energy for production.171
Substantial effort
also has been focused on turbine blades.
Great progress has been made over the years to ensure the
efficiency of blade operation, but there was little emphasis until
recently on their life-cycle impacts; unlike the other 85-90% of
a wind turbine’s massi
, blades are difficult to recycle and often
end up in landfill.172
Among advances in 2021, Siemens Gamesa
produced for commercial use its first fully recyclable offshore
blades, made with a new resin that can be separated efficiently
from other components at the end of a blade’s working life,
and the Zero wastE Blade ReseArch (ZEBRA) consortium
produced the first prototype of its 100% recyclable blade
made from thermoplastic resin.173
Public-private international
collaborations focused on a variety of possible solutions, such
as the recycling of existing glass fibre products, the development
of recyclable thermoplastics combined with three-dimensional
blade printing, and the development of longer, lighter-weight,
modular and more-recyclable blades made with fabric.174
The industry also is working to improve the sustainability of
forestry, extraction and trade of balsa wood (a key component
of blade cores) and to develop alternative materials.175
Industry
demandforbalsawoodhassurgedinrecentyears,causingsupply
problems and raising prices, which has intensified illegal logging
and forest degradation in the Amazon, with adverse impacts
on local indigenous people.176
To reduce balsa wood imports
and relieve shortages, scientists in China are experimenting
with plantations, while some blade manufacturers are using a
lightweight, strong plastic (polyethylene terephthalate) in place
of balsa wood.177
Several companies made new or expanded blade-related
sustainability pledges in 2021. GE’s LM Wind Power (Denmark)
announced plans to produce zero-waste blades (manufacturing
process only) by 2030; Vestas pledged to develop a fully
recyclable blade by 2030 and zero-waste turbines by 2040;
and Ørsted (Denmark) committed to reuse, recycle or
recover all blades in its projects once decommissioned.178
p See Sidebar 6 on the following pages for a summary of the
main renewable energy technologies and their costs.179
Innovation
in the industry continued
to focus on reducing costs,
scaling up production,
and enhancing the value
of wind energy while
improving environmental
and social sustainability.
153

i The fossil fuel-fired power generation cost range by country for the Group of 20 (G20), and fuel, is estimated to be between USD 0.054 per kWh and
USD 0.167 per kWh. This assumes that the current high fossil fuel prices do not cause a fundamental shift in 30-year natural gas price expectations.
If long-term US gas price expectations rose to USD 5 per gigajoule at the Henry Hub, the lower bound would rise to USD 0.064 per kWh.
USD/MWh
(2020)

0
100
400
200
300
46
404

118

79

33
2010 2021
2010 2021
2010 2021
2010 2021

95th
percentile
5th
percentile
Average cost
Cost reduction
between 2010-2021
–67%
–90% –58% –68%
SIDEBAR 6. Renewable Electricity Generation Costs in 2021
Renewables have become the default source of least‑cost new
power generation globally, following a 10-year trend of cost
declines. Despite supply chain challenges and rising commodity
costs in 2021, the costs of electricity from utility-scale solar PV
and onshore and offshore wind power all fell during the year,
while the cost of concentrating solar thermal power (CSP) rose
slightly. Renewables not only are competing with fossil fuels
but are significantly undercutting them, when new electricity
generation capacity is required. In 2018, the global weighted-
average levelised cost of electricity (LCOE) of onshore wind
power fell below the level of the cheapest fossil fuel-fired
generation option, while solar PV achieved that feat in 2020.
Solar PV has experienced the most rapid cost reductions
since 2010, with the global weighted‑average LCOE of newly
commissioned utility‑scale projects falling 89% between
2010 and 2021, from USD 0.40 per kilowatt-hour (kWh) to
USD 0.046 per kWh. (p See Figure 45.) This represented a
steep decline, from solar PV being more than twice as costly
as the most expensive fossil fuel‑fired power generation
option to undercutting the bottom of the range for new fossil
fuel‑fired capacity in 2021 by USD 0.008 per kWhi
.
This reduction has been driven primarily by declines in module
prices, which have fallen 91% since 2010 (despite the recent
uptick). Utility-scale solar PV capacity factors also have risen
over time. Initially, this was driven mainly by growth in new
markets with better solar resources, but in recent years the
more extensive use of one-axis trackers and bi-facial modules
has been important.
For onshore wind power projects, the global weighted‑average
cost of electricity fell 64%, from USD 0.102 per kWh in 2010
FIGURE 45.
Global Weighted-Average LCOEs from Newly Commissioned, Utility-scale Renewable Power Generation
Technologies, 2010-2021
Note: These data are for the year of commissioning. The thick lines are the global weighted-average LCOE value derived from the individual plants
commissioned in each year. The LCOE is calculated with project-specific installed costs and capacity factors, while the other assumptions are detailed
in the Power Generation Costs 2021 report from IRENA. The single band represents the fossil fuel-fired power generation cost range, while the bands for
each technology and year represent the 5th and 95th percentile bands for renewable projects. No price range available for CSP. In 2021 there was only
one CSP plant comissioned, as many projects have been delayed.
Source: IRENA Renewable Cost Database.
154

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03
to USD 0.033 per kWh in 2021. These cost reductions were
driven by declines in turbine prices and balance of plant costs,
as well as by higher capacity factors from today’s state-of-
the-art turbines. Reductions in operations and maintenance
(OM) costs also have occurred as a result of increased
competition among OM service providers, greater wind farm
operational experience, improved preventative maintenance
programmes, more reliable turbines and increased availability.
The global weighted‑average total installed cost of newly
commissioned onshore wind power projects fell 36%, from
USD 2,041 per kilowatt (kW) in 2010 to USD 1,315 per kW
in 2021. At the same time, continued improvements in wind
turbine technology, wind farm siting and reliability have led
to an increase in average capacity factors, with the global
weighted average increasing from 27% in 2010 to 39% in 2021.
The global weighted average LCOE of newly commissioned
offshore wind projects fell from USD 0.188 per kWh in 2010 to
USD 0.079 per kWh in 2021, a reduction of 58%.
The decline in the cost of electricity from CSP between
2010-2021 – into the middle of the range of the cost of new
capacity from fossil fuels – remains a remarkable achievement,
recording a 67% decline in this period.
The global weighted‑average LCOE of hydropower rose
26% between 2010 and 2021, from USD 0.039 per kWh to
USD 0.049 per kWh. This was still lower than the cheapest
new fossil fuel‑fired electricity option.
The global weighted‑average LCOE of bio-power projects
experienced some volatility during 2010-2021 but did not
show a notable trend upwards or downwards over the period.
However, the global weighted-average LCOE in 2021 of
USD 0.067 per kWh was 14% lower than the 2010 value of
USD 0.078 per kWh.
The global weighted‑average LCOE of geothermal was
USD 0.068 per kWh in 2021, 34% higher than in 2010 but
well within the range seen between 2013 and 2021, of
USD 0.054 per kWh to USD 0.071 per kWh. Annual new
capacity additions remain modest, and one project with an
atypically low capacity factor of 42% dragged down the global
weighted-average capacity factor for newly commissioned
projects in 2021 to 77%.
Note: The rising strength of the USD currency during the year has reduced prices in USD terms in some of the major markets. For wind power
technology, most of the price increase for turbines made outside of China is expected to be felt in 2022. Solar PV modules prices increased by 4-7%
in 2021 compared to 2020, while prices in 2022 are expected to vary depending on module technology. For details on methodology, see International
Renewable Energy Agency, Power Generation Costs 2021, June 2022.
155

Solar PV for Electricity Access
Chad, a landlocked country in north-central Africa, has one of
the lowest electricity access rates in the world. Only 8% of the
population had access to electricity in 2019, with a significant
gap between rural (1%) and urban (20%) areas. Apart from
a 1 megawatt (MW) wind power plant in the eastern town of
Amdjarass, electricity is supplied only by generators, which
break down regularly. Oil, used to run clusters of generators, is
expensive and highly polluting. This precarious energy situation
hinders socio-economic development and affects quality of life,
especially in Chad’s second largest city, Abéché. With 80,000
inhabitants, Abéché is not connected to the national grid and has
struggled to develop its infrastructure due to security challenges.
In this unfavourable context, the French renewable energy firm
InnoVent is developing Chad’s first solar power plant in Abéché.
The pilot phase of the plant (1 MW) was built between mid-2020
and November 2021, with soldiers providing security for both
personnel and equipment. In December 2021, the first electricity
was delivered to the grid of the national power company, Société
Nationale d’Electricité (SNE). Ultimately, the solar plant will
have a total capacity of 5 MW. Plans for 2022 include installing
and commissioning 2.5 MW of battery storage and building the
second phase of the plant (4 MW), with the aim of having the
facility fully operational by early 2023.
SNAPSHOT. CHAD
04

04
DISTRIBUTED
RENEWABLES
FOR
ENERGY
ACCESS
n 2021, an estimated 770 million people worldwide
did not have access to electricity.1
The number
of people without access fell significantly in
the last decade, from 1,153 million in 2010 to 759 million
in 2019.2
However, the COVID-19 pandemic slowed
global progress in reaching universal electricity access,
as a decline in new grid and off-grid connections led
to a 2% increase in the population without access in 2021.3
(p See Snapshot: Chad.) The greatest change occurred in Asia,
where the gap in electricity access shrank four-fold over the
decade (while it increased slightly in sub-Saharan Africa).4
Most world regions enjoy electricity access rates above 94%.5
Sub-Saharan Africa remains the region with the lowest access
rate, at 46% in 2019, representing 570 million people who lack
access.6
Most of the gap in electricity access can be attributed
to 20 countries where population growth has outpaced the
electrification rate, including the Democratic Republic of the
Congo (DRC), Ethiopia and Nigeria.7
Access remains lower in
rural areas (640 million without access) than in urban areas
(116 million).8
In 2019, around 2.6 billion people worldwide did not have
access to clean cooking.9
Annual growth in access is slow,
averaging 1% for the decade, and the target for universal access
to clean cooking by 2030 may fall short by 30%.10
In 2019, for the
first time, sub-Saharan Africa was home to more people without
access to clean fuels and clean cooking technologies than
any other region.11
More than 80% of the access gap in clean
cooking is concentrated in 20 countries, with the largest gaps
(access rates of 5% or below) in the DRC, Ethiopia, Madagascar,
Mozambique, Niger, Tanzania and Uganda.12
I
 As of 2021, 770 million people lacked access
to electricity, and 2.6 billion lacked access to
clean cooking.
 Achieving the target for universal access
to clean cooking by 2030 may fall 30% short.
 An estimated 1.09 billion people annually
are exposed to significant risk due to a lack of
access to cooling, as inadequate refrigeration and
storage lead to large wastage of food production.
 In 2021, 7.43 million off-grid solar lighting
products were sold, one-third through “pay-as-
you-go” and two-thirds via cash.
 Solar mini-grid capacity totalled 365 megawatts
(MW) in 2019, including 60 MW in Asia, 54 MW
in Sub-Saharan Africa and 12 MW in Latin
America and the Caribbean.
 The top 10 companies account for 80% of the
annual investment in off-grid solar, while for
clean cooking the top 7 companies account for
90% of the investment.
KEY FACTS
DISTRIBUTED
RENEWABLES FOR
ENERGY ACCESS
04
157

i The provision of services and infrastructure for the mobility of people and goods – advancing economic and social development to benefit today’s and future
generations – in a manner that is safe, affordable, accessible, efficient, and resilient, while minimising carbon and other emissions and environmental impact.
Critical
High-Impact Country
Exposed to Cooling Challenges
In Progress
National Cooling Action Plan
Published
Between 2019 and 2021, during the COVID-19 pandemic, the
number of people without access to clean cooking increased by
around 30 million, or 1%.13
In developing regions of Asia, many
people who recently had gained access to clean cooking fuels
reverted to traditional fuels for financial reasons.14
A similar
reversal was observed in sub-Saharan Africa, where the number
of people without access to clean cooking is expected to have
increased to an estimated 4% above pre-pandemic levels.15
Globally, lack of access to cooling is impacting an estimated
1.1 billion people, especially in Bangladesh, India and Nigeria.16
In these countries, an estimated 40% of the total food produced
is wasted due to inadequate refrigeration and storage.17
Increasingly, countries such as India, Kenya and Nigeria are
deploying solar-powered cold rooms, using various business
solutions to provide value to small farmers.18
By the end of
2021, 6 countries had developed national cooling action plans
– which include assessments of risk and cooling demand
as well as detailed interventions to advance the deployment
of cooling technologies – and 23 countries were developing
them.19
(p See Figure 46.)
Around 450 million
people across Africa,
including more than
70% of the continent’s
rural population, lack
access to (sustainable)
mobilityi
due to limited
transport infrastructure.20
(p See Transport Section in
Global Overview Chapter.)
“Micro-mobility” solutions
such as electrified bikes,
scooters, and three-wheelers, as well as battery charging
services, are emerging as an opportunity to expand transport
access, including through the use of renewables.21
In Kenya
and Uganda, where motorcycle taxis (boda-bodas) and tuk-tuks
are popular for transporting goods and services (and provide
employment for young people), possibilities exist for converting
to electric solutions.22
Source: SEforALL. See endnote 19 for this chapter.
FIGURE 46.
Countries Developing National Cooling Action Plans for Cooling Access, as of End-2021
Lack of access to
cooling is impacting
an estimated
1.1 billion
people .
158

i Afghanistan, the Bahamas, Bolivia, India, Japan, Malawi, Mozambique, Niger, South Sudan and Zimbabwe.
04
DISTRIBUTED
RENEWABLES
FOR
ENERGY
ACCESS
RENEWABLE-BASED ENERGY ACCESS
FOR RESILIENCE
The distributed nature of renewable energy technologies can help
increase community resilience in the face of extreme weather,
political instability and other unexpected events. The world’s
leastdeveloped countries comprise 9 out of the 10 countries
globallyi
most affected by weather-related losses.23
In Asia,
natural disasters directly impacted 57 million people in 2021 –
particularly in Bangladesh, China, India, the Philippines and
Thailand – and millions were displaced to makeshift locations,
lacking access to health care, food supplies and communications
infrastructure.24
In many cases, modular and transportable
distributed renewables for energy access (DREA) technologies
were deployed to enable emergency response teams to quickly
provide recovery assistance to those in need.25
In urban affected areas, DREA solutions such as rooftop solar
photovoltaics (PV) and water heaters can provide immediate
back-up power and heat.26
Larger-scale solutions such as solar
parks and wind farms – either combined with battery storage or
hybridised and connected to the distribution grid – can power
critical infrastructure like desalination plants and water distribution
pumps when shortages occur. In Mombasa, Kenya, a recently
built solar-powered desalination project, a partnership between
WaterKiosk and Boreal Light GmbH, provides clean water to 23
local hospitals.27
DREA systems in disaster-prone areas should be
designed to withstand adverse events to ensure long-term value.28
Solar-powered greenhouses and hydroponic vertical farms – where
vegetables and staple foods can be grown using minimal land, water
and soil – also have proliferated. In 2013, a vertical farm was piloted
in Kenya (which has been suffering from acute rainfall shortages)
and has since been replicated by homes and businesses across
the country as well as in Nigeria, Tanzania and Uganda.29
Electricity access for public infrastructure such as health centres,
schools and government offices is critical. A lack of access
(or uneven access) hampers institutional effectiveness and
community development and weakens the links between remote
areas and the central government. DREA solutions support
essential rural healthcare services such as vaccine preservation,
diagnostic equipment operation and air filtration. In sub-Saharan
Africa, distributed renewables could power the 1.75 million
health centres and schools that lack access to electricity.30
(p See Box 10.) In times of drought, DREA can support irrigation,
water pumping, ice-making and freezing for food preservation.31
BOX 10. Energy Access in the Health Sector
Renewable energy solutions have supported the provision
of health care and other essential services, especially since
the start of the COVID-19 pandemic. Solutions range from
small-scale off-grid installations for unelectrified rural clinics,
to larger, steady power delivery services for urban clinics that
house crucial medical devices but are subject to unreliable
grids. During the pandemic, there has been a particular
focus on cold chains to keep COVID-19 vaccines chilled from
production to delivery. These cold storage facilities require
24/7 power supply, which has come from hybrid solar/diesel,
battery/inverter systems or direct-drive solar refrigerators.
During 2020 and 2021, a variety of initiatives included mini-
grids and microgrids in the health sector:

Nigeria’s Rural Electrification Agency developed several
solar mini-grids for use at hospitals and other healthcare
facilities as an emergency response to COVID-19. Health
facilities also were a focus of several other donor-driven
mini-grid initiatives.

The Multilateral Energy Compact for Health Facility
Electrification, launched in 2021, targets providing 25,000
health facilities worldwide with access to clean and reliable
power sources. Aimed primarily at health facilities that
are experiencing a significant energy gap, the compact
will contribute to the replacement of existing fossil-based
capacity with renewable energy solutions.

The Green Climate Fund’s Clean Cooling facility aims to
support reliable and climate-friendly vaccine cold chains –
as well as clean cooling in health facilities – in El Salvador,
São Tomé and Príncipe and Somalia.

Power Africa, funded by the US Agency for International
Development, directed USD 4.1 million in grants to off-
grid companies in 2020 to electrify health clinics in rural
and peri-urban areas, including through mini-grids. In
Lesotho, OnePower and SustainSolar aim to supply seven
containerised solar mini-grids under Power Africa to
electrify several clinics.
159

RENEWABLE-BASED ENERGY ACCESS
FOR GENDER EQUALITY
Energy access and gender equality are strongly interlinked and
are at the crossroads of two of the United Nations Sustainable
Development Goals (SDG 5 and SDG 7).32
Across Sub-Saharan
Africa, as well as in Asia, women are more likely to be responsible
for chores such as cooking, cleaning, and collecting wood and
water, particularly in rural communities.33
The use of traditional
wood fuel for cooking is a leading cause of mortality from indoor air
pollution, attributed to 7 out of 100,000 deaths worldwide in 2019.34
However, the links between energy access and gender depend
on local circumstances, and in some cases perceived barriers to
gender equity result from gaps in financing and training.35
Solutions such as electric cook stoves, energy-efficient solar water
pumps, and cooling technologies can improve the lives of women
and others living in remote areas.36
In addition to decreasing
exposure to harmful indoor air pollutants, such technologies create
opportunities for women and girls to attend school and enter
the labour force; reduce acceptance of gender-based violence;
and change social norms through access to information.37
Electricity access using off-grid renewable energy solutions can
enhance women’s economic power through gender-inclusive
development of nascent industries for these technologies.38
Yet even though women traditionally are responsible for most
tasks that use energy and appliances, they tend to have limited
decision-making power regarding these purchases.39
Many developing countries have adopted policy solutions to
address women’s energy needs, acknowledging that women
often are the primary energy users and income generators and
serve as agents of change.40
Evidence from sub-Saharan Africa
shows that involving women in energy access programmes and
projects leads to both greater energy access and increased gender
equality.41
In 2021, the Economic Community of West African States
(ECOWAS) adopted a gender mainstreaming policy to address
barriers hindering women’s participation in energy access, and
Burkina Faso and Nigeria both have adopted gender action
plans developed under the auspices of the ECOWAS Centre for
Renewable Energy and Energy Efficiency (ECREEE).42
Several countries in Asia are considering using gender budgeting
fornewpoliciesandprogrammes,whichinvolvesauditingtheextent
to which gender equality is integrated into plans.43
Pakistan has
built on past efforts to use gender-focused institutional budgeting
in institutions such as the Ministry of Women’s Development and
the Punjab Finance Department, with the Ministry of Energy and
several think tanks now in the process of forming national-level
energy and gender mainstreaming policies.44
Despite this policy ambition, gender-centric energy access
projects in developing countries remain scarce and typically
are embedded as a capacity building or awareness component
in access programmes. Exceptions exist, however – such as
Solar Sister and Tata Power – driven mainly by non
governmental
efforts and corporate social responsibility programmes.45
(p See Snapshot: Africa.)
SNAPSHOT. AFRICA
Gender-Integrated Energy
Access Programmes
Solar Sister, a network of women entrepreneurs operating
across several countries in Africa, has provided 3 million
people with access to clean energy as of April 2022.
The social enterprise is unique because of its focus on
empowering women to build sustainable businesses in their
communities. The programme recruits, trains, and supports
women entrepreneurs, and supplies them with off-grid solar
products (such as solar lighting) and clean cook stoves to sell.
Solar Sister provides support to rural communities, generates
revenue for women entrepreneurs and increases access
to clean energy sources. As of early 2022, the network had
sold more than 613,000 clean energy products, generating
additional income for over 8,600 households and supporting
some 6,800 women entrepreneurs. Products sold by the
Solar Sister entrepreneurs have avoided the emission of more
than 946,763 metric tonnes of CO2.
160

i The emergence of smart devices is the main breakthrough for making business models viable. By monitoring consumption, these technologies allow a shift
from upfront device purchase (which is out of reach for many customers) towards termbased payment per use (PAYGo).
ii Tier 2 energy provision is 50 to 500 watts of power for 4 to 8 hours daily.
Million Units
5
4
3
2
1
0
84%
PAYGo Only
82%
Cash Only
PAYGo Only
Cash Only
0.86
3.85
0.82
0.65
3–10 Wp 10+ Wp
0–3 Wp
1.06
0.2
04
DISTRIBUTED
RENEWABLES
FOR
ENERGY
ACCESS
Source: GOGLA. See endnote 50 for this chapter.
FIGURE 47.
Volume of Off-grid Solar Products Sold, by Size and Type of Sale, 2021
SMALL-SCALE OFF-GRID SOLAR
MARKET TRENDS
In 2021, the off-grid solar sector continued to experience impacts
from the COVID-19 pandemic, although signs of recovery were
apparent. Sales of off-grid solar products totalled 7.4 million
units for the year, with around two-thirds of the devices
purchased in cash and one-third using the “pay-as-you go”
(PAYGo)i
model.46
In total, more than 100 million people were
benefiting from improved energy access from these products
(including 14 million people accessing Tier 2ii
services), saving
an estimated USD 12.5 billion in energy expenditures and
generating USD 6.7 billion in income.47
The bulk of the sales (6.1 million units) were portable lanterns
(0-3 watt peak, Wp) and small solar devices such as phone
chargers (3-10 Wp), which together represent 83% of all off-
grid solar products.48
In addition, nearly 1.3 million solar home
systems (above 10 Wp) were sold during the year, representing
17% of total sales.49
The vast majority of the solar home systems
(more than 84%) were sold under the PAYGo model, whereas the
vast majority of portable lanterns were sold as cash products.50
(p See Figure 47.)
PAYGo companies providing solar home systems traditionally
have focused on basic services such as lighting and phone
charging. Increasingly, however, companies are expanding their
offerings to bigger systems that power a broader range of key
appliances, such as televisions, fans, refrigeration units and
solar water pumps. Sales of these appliances in the first half of
2021 totalled 421,000 units, the lowest level since 2018, as the
industry has been affected by supply issues, shortages and price
increases.51
161

i The Nigerian Electrification Project budget for stand-alone solar home systems and micro small and medium enterprises is very sizeable, at USD 305 million
equivalent, of which USD 230 million comes from private sector funding. Meanwhile, the Power Africa Nigeria Power Sector Programme (2018-2023) has a
component aiming to develop business and consumer markets for off-grid solutions, focusing on support for solar home systems, mini-grids and microgrids.
Kenya
Congo (DRC)
Cameroon
Central Africa
Tanzania
Ethiopia
East Africa
Myanmar
Philippines
Papua New Guinea
Southeast Asia
the Pacific
Pakistan
Bangladesh
India
South Asia
Benin
Burkina Faso
Nigeria
West Africa
South Africa
Southern Africa
0 Mio Units
0.5 1.0 1.5 2.5
Market dynamics vary across regions and countries.52
(p See Figure 48.) East Africa was the leading market globally in
2021, with nearly 4 million units of off-grid solar products sold,
dominated by Kenya (1.7 million) and Ethiopia (439,103).53
While
Kenya’s sales have been relatively steady since 2019, Ethiopia’s
have fallen continuously since 2019 due to a combination of
the COVID-19 pandemic, conflict and monetary devaluation.54
Elsewhere in the region, sales grew substantially in Zambia (up
77%), Rwanda (30%) and Tanzania (9%).55
For key solar-powered
appliances, demand fell in most countries except Mozambique
and Zambia, where sales were up 29% and +101%, respectively.56
The West African market is much smaller (around the same size
as Kenya’s market) but has shown solid growth, ranking second
globally with around 1 million off-grid solar products and devices
sold in 2021.57
Nigeria is the region’s largest market, with sales
totalling 628,000.58
The market has shown strong, steady growth
since 2019, with sales up 77% between the first and second
quarters of that year.59
Burkina Faso is West Africa’s second
largest market for off-grid solar products (85,113 devices sold
in 2021), followed by Benin (71,240 devices) and Senegal, which
recently enforced a value-added tax (VAT) exemption on solar
products.60
While these markets are in a growth phase, others in
the region – including in Côte d’Ivoire, Liberia and Ghana – are
shrinking, with low demand.61
The Nigerian market for off-grid solar products is co-ordinated
by the Rural Electrification Agency, which aggregates various
programmes including the Renewable Energy Fund (which
delivered 6,805 solar home systems as of 2020), the Nigeria
Electrification Project and Power Africai
.62
As a result of these
efforts, Nigeria recorded high sales (240,000 units) in 2021,
with a significant increase in PAYGo sales.63
The country also
is the largest market in West Africa for solar appliances, which
grew 38% in 2021 compared to the second half of 2020.64
In
other African regions, the largest market for Central Africa is
Cameroon, with 430,358 off-grid solar products sold in 2021.65
South Asia was the third largest market globally, with 869,833
off-grid solar products sold in 2021.66
India dominated the
region with 785,711 devices sold, although sales were down
66% compared to 2019.67
Due to ongoing grid-connection
efforts in the country, the Indian market is moving away from
off-grid solar products to grid-connected products. East Asia
and the Pacific have a modest market for off-grid solar, with
258,454 items sold in 2021, mainly in Papua New Guinea
(111,616 devices) and the Philippines (86,891 devices).68
Sales in
the region have quadrupled since 2019.69
Source: GOGLA. See endnote 52 for this chapter.
FIGURE 48.
Volume of Off-grid Solar Products Sold, PAYGo Only, Selected Countries, 2021
162

i See glossary.
04
DISTRIBUTED
RENEWABLES
FOR
ENERGY
ACCESS
BUSINESS MODELS AND FINANCING
To be sustainable, a business model for off-grid solar products
depends primarily on the consumer’s ability to access financing
and to secure income, rather than on the vendor’s capacity to
sell hardware products. This requires having the capability for
lending, supported by a payment platform that the consumer is
able to access through a mobile phone or other smart device –
essentially, the company is a software platform bundled to a solar
solution. In some cases, the business might use an “energy as a
service” approach, providing productive appliances and functions.
While some business models rely on a direct relationship with
the end customer, which entails organizing distribution networks,
other models rely on accredited distributors (which handle sales,
installation and/or maintenance).
So far, the picoi
solar and solar home systems markets have been
regulated as markets for goods. However, the advanced monitoring
software platforms that these companies offer are bundling large
fleets of systems into a common monitoring tool, which can
track customers individually as well as aggregating generation
and demand. From the point of view of the system operator, this
approach is increasingly similar to that of a “distributed” energy
service supplier, which opens possibilities for convergence with
electricity regulations in the future. The following are examples of
dominant companies in the off-grid solar field and their offerings:

M-KOPA, which operates in East Africa, uses a PAYGo
approach to offer three sizes of solar home systems and solar
fridges for small businesses, as well as smartphones. For
customers who have made reliable payments on a PAYGo
product, the company also offers services such as clean
biomass cookstoves, entertainment packages, and financial
services such as cash loans and hospital packages.70

Green Planet/Sun King is primarily a retail and maintenance
company that manufactures solar home systems and also
offers appliances. Its service centres are based in India, but the
company is looking for distributors in Africa.71

Zola offers a hardware solution with modular and versatile
solar power, storage and inverter packages at several scales.
In addition, it offers a software solution that generates data for
both the customer and the distributor to monitor the fleet of
operational devices. The company is looking for distributors
in Africa.72

d.light uses its PAYGo Atlas platform to enable customer
management and payment processing for a range of smart
solar appliances connected to the platform. It also provides
access to mobile phones, which host the mobile payment
solution and can be recharged through the solar appliances.
The company relies on distribution partners that operate local
sales networks.73
Access to finance is a major barrier to universal energy access,
and locally owned companies face barriers to harvesting funding
opportunities. The off-grid solar sector is highly concentrated,
with the top 10 recipients of investment receiving 80% of the
total.74
In 2021, GET.invest launched a Finance Readiness Support
mechanism to help micro- to medium-sized companies raise
funds.75
Meanwhile, product affordability remains a challenge,
particularly in remote rural areas. In 2020, Bboxx launched an
offering of 20-watt solar panels and improved batteries targeted
at low-income rural households, with the goal of initially servicing
the DRC, Kenya, Rwanda and Togo before expanding elsewhere.76
PAYGo solutions also exist in agriculture, with the aim of
improving agricultural productivity and boosting rural incomes.
In Kenya, examples include Boreal Light’s solar water pumping
solution, which provides drinking water for 3,000 residents, and
SunCulture, which provides solar-powered irrigation systems for
smallholder farmers and also is expanding to Ethiopia, Togo and
Uganda. Other leading actors in small-scale solar solutions for
agriculture are Cooperative Bank in Kenya (greenhouse farming),
Gham Power in Nepal (irrigation), Offgrid Sun in Zimbabwe
(water and irrigation), Tesvolt in Brazil (irrigation), Pahseaun (milk
chilling and storage) and Seawater Greenhouse (desalination).77
Access to finance is
a major barrier to
universal
energy access .
163

i See glossary.
ii Such developments consist in building a mini-grid in areas where the distribution networks are present. It occurs in communities that are within the territory of
distribution companies but receive unreliable, inconsistent, and/or low-quality power or no power at all.
MINI-GRIDS
MARKET TRENDS
As of 2019, an estimated 47 million people were connected to
19,000 mini-grids worldwide, and another 7,500 systems were in
the planning stages, mostly in Africa (4,000), South Asia (2,200)
and East Asia and Pacific (900).78
Most of the operating mini-grids
were based in Asia (60%), with the rest mainly in sub-Saharan
Africa (39%).79
In total, around 6,900 mini-grid systems are found
in East Asia and the Pacific, and around 1,500 in Africa.80
The
main countries with existing mini-grids are Afghanistan (4,980),
Myanmar (3,988), India (2,800), Nepal (1,519) and China (1,184).81
Of the identified 5,544 mini-grids tracked by the Mini-
Grids Partnership as of March 2020 (with a total capacity of
2.37 gigawatts, GW), 87% were based on renewable energy.82
Although most renewablebased mini-grids are powered with
diesel and hydropower, other solutions include solar-diesel
hybrid systems as well as, more recently, solar PV and battery
systems, driven by the falling costs of both technologies. Solar PV
has been the fastest growing mini-grid technology, incorporated
into 55% of mini-grids in 2019 compared to only 10% in 2009.83
The installed capacity of solar mini-grids totalled an estimated
365 MW in 2019, including 60 MW in Asia, 54 MW in sub-
Saharan Africa and 12 MW in Latin America and the Caribbean.84
In 12 sub-Saharan African countries, the number of renewable-
based mini-grid connections installed by private developers grew
from just 2,000 in 2016 to more than 41,000 in 2019, mostly in East
Africa.85
Across sub-Saharan Africa, around 42,000 household
mini-grid connections (including diesel systems) serve more
than 200,000 people, as well as businesses, schools and health
facilities.86
Other countries in West and East Africa also have
initiated mini-grid developments.87
In West Africa, Nigeria has one of the world’s largest mini-grid
support programmes under the Nigeria Electrification Project
(NEP) and aims to electrify 300,000 households and 30,000 local
enterprises through private sector-driven solar-hybrid mini-grids
by 2023.88
With funding from the World Bank and the African
Development Bank, the project offers minimum-subsidy tenders
and performance-based grants.89
Nigeria’s Rural Electrification
Authority commissioned several installations in 2020, including
two solar-hybrid mini-grids (totalling 135 kilowatts, kW) developed
by Renewvia Energy and a 234 kW solar-hybrid mini-grid installed
by a local developer to power nearly 2,000 households.90
In 2021,
the Authority signed agreements with Husk Power to build seven
mini grids providing over 5,000 new connections.
In 2022, Sierra Leone plans to complete the installation of 94
mini-grids, primarily under the Rural Renewable Energy Project.91
A competitive process was used to select three operators, and
the presence of health centres and productive usesi
was
considered in the selection of eligible locations.92
In 2021, Togo’s
Rural Electrification and Renewable Energy Agency announced
the first 129 locations to
be electrified by its mini-
grid programme, which
has been supported by an
extensive ground survey,
geospatial analysis and
system modelling.93
Also
that year, Senegal’s Rural
Electrification Agency
launched a tender to
electrify 117 villages through
solar mini-grids.94
In 2020,
Benin selected 11 companies to build solar mini-grids serving
128 locations under its Off-Grid Clean Energy Facility.95
In East Africa, Kenya has been the most active mini-grid market
with nearly 200 sites in operation in 2019.96
In 2021, Renewvia
Energy commissioned another three solar mini-grids (87.6 kW
total) in the country’s Turkana and Marsabit counties, serving
two communities and a refugee camp, with support from the
EnDev results-based financing facility.97
Kenya Power launched
a tendering process in 2021 to hybridise 23 older diesel mini-
grids, mostly with solar.98
Overall, the country’s draft mini-grid
regulations, released in 2021, indicated 280 new mini-grids
planned and under construction, with the expectation of
having a total of 391 projects in operation across Kenya by the
end of 2022.99
Most of these are being developed under the
Kenya Off-Grid Solar Access Project (KOSAP) financed by the
World Bank.100
In Central Africa, a 1.3 MW solar-hybrid mini-grid installed by
Nuru in the city of Goma, DRC, entered into service in early
2020.101
In November 2021, Uganda inaugurated a mini-grid in the
district of Lamwo, where 25 mini-grid projects are planned.102
The
country undertook a master planning exercise and identified sites
for mini-grids powering 62,000 residents in 10 service territories.
In Asia, India is seeking full grid connection of its electricity
supply, although the supply remains unreliable, which has led
to the deployment of “under the grid”ii
solutions.103
Bangladesh’s
170 kW BREL solar mini-grid project came online in early 2020;
the project was financed by the Infrastructure Development
Company Limited (IDCOL) as part of its solar mini-grid initiative
for islands and other remote areas, which has brought online a
total of 27 projects with a combined capacity of 5.6 MW.104
In Brazil, the Universal Access programme achieved 3.5 million
connections and benefited 16 million people as of 2021.105
To
encourage productive uses of electricity, it includes the creation
of Community Production Centres (CCP) that address the
production, processing and marketing of local products.106
The
More Light for Amazon sub-programme, established in 2020,
seeks to promote electricity access in remote regions of the
Amazon states, targeting 70,000 families to be supplied with solar
PV systems.107
However, challenges in locating and consistently
accessing these communities throughout the year could impede
the collection of payments.108
An estimated 47 million
people were connected to
19,000
mini-grids
worldwide .
164

04
DISTRIBUTED
RENEWABLES
FOR
ENERGY
ACCESS
BUSINESS MODELS AND FINANCING
Many mini-grids are owned by national utilities, whereas others
are under private, community or hybrid ownership.109
Mini-
grid development traditionally has been driven by utilities and
nongovernmental organisations, but in recent years private
developers also have entered the space.110
So far, there is no
universally proven business model that works everywhere and is
completely commercially viable without donor or public support.111
National governments have provided fiscal and regulatory
support to the sector through VAT exemptions and policies, such
as Kenya’s new minigrid regulation in 2021.112
Most of the growth in the mini-grid sector has been supported
by donor programmes, such as Nigeria’s NEP and Kenya’s
KOSAP.113
The World Bank alone claims to account for 25% of
global investment in the sector.114
Additionally, the Mini-grid
Funder’s Group, which represents 30 funders and financiers
that co-ordinate efforts and share lessons, has reported a total
committed investment of around USD 1.8 billion in mini-grids
globally (USD 1.4 billion in Africa).115
The largest programmes
are in Burundi, the DRC, Mali, and Nigeria, with other sizeable
efforts (above USD 10 million) in Kenya, Lesotho, Liberia, Malawi,
Mozambique, Niger and Tanzania.116
One issue is the capacity of institutions and the private sector
to absorb the funds at their disposal.117
Of the USD 2.1 billion in
financing approved by donors of the Mini-Grid Funder’s Group
since 2007, only 14% had been disbursed as of 2020.118
A key
challenge on the private sector side is the lack of maturity of
the sector, as most mini-grid developers are small companies
or vertically integrated startups that face difficulties in scaling
up operational and financial capacity and mobilising equity.
At the project level, some developers struggle to find suitable
commercial arrangements with anchor loads, without which
the mini-grids may not be viable over the long term.119
On the
institutional side, there are challenges in awarding licences and
robust contracts. Most companies have yet to reach scale; large
players have small equity stakes in the market, and impact funds
are stimulating the market.
In 2020, Husk Power was the first company globally to install
100 community mini-grids, and it serves 5,000 business
customers.120
The company operates in India without the need for
subsidies, relying on a diversified business model that addresses
both the supply side (solar mini-grids for access, small and
medium enterprises) and the demand side (the retail of productive
appliances and microfinance). Husk believes that its model is
scalable, and in early 2022 it announced a target of 5,000 mini-
grids in Africa and Asia for a total of 1 million connections.121
The
company has been engaged since November 2021 in building six
mini-grids in Nigeria’s Nasarawa state under the NEP.122
PowerGen supports more than 120 communities in over 8 African
countries through microgrids and is also expanding in the
commercial and industrial sector.123
The company announced
a partnership with CrossBoundary Energy Access in 2021 to
electrify 55,000 households in Nigeria.124
Other large international
corporations, such as EDF, Enel, ENGIE, Iberdrola, Shell and
Tokyo Electric, also have joined the mini-grid market, generally
by taking over or investing in smaller companies.125
Impact funds
such as the Schneider Electric Energy Access Fund, the Energy
Access Ventures Fund and Schneider Electric Energy Access
Asia support the development of start-ups for energy access.126
Moving forward, large-scale portfolio approaches (such as in the
DRC, Nigeria and Sierra Leone) are expected to support large
project pipelines, as they are able to attract global risk-mitigation
facilities and unlock private equity.127
The Scaling Mini-Grid
project in the DRC, Africa’s largest at USD 400 million, plans to
equip 21 provincial capitals with 200 MW of capacity through
solar mini-grids, bringing the national electricity access rate from
19% to 30% by 2024.128
In 2021, the Multilateral Investment Guarantee Agency (MIGA),
a World Bank subsidiary, issued guarantees of up to USD 37.1
million to cover investments in the solar home systems provider
Bboxx in several African countries.129
The guarantee was issued
through a special purpose fund to cover equity and quasi-equity
shareholder loan investments in Bboxx subsidiaries in the DRC,
Kenya and Rwanda for a maximum term of 10 years.130
MIGA
also issued a guarantee of USD 5.9 million to cover investments
in Bboxx through the Energy Inclusion Facility Off-Grid Energy
Access Fund, a USD 100 million financing facility created by the
African Development Bank to finance electrification in Africa
through off-grid solutions.131
The emergence of geospatial analysis software, used to
develop electrification plans that define areas for mini-
grids, is enabling wider application of a portfolio approach
to deployment.132
Prospecting project pipelines for mini-grid
developments requires resource-intensive field studies, and
partial automation can help streamline the process and trigger
economies of scale. Village Data Analytics software has been
used in more than 15 countries in Africa and Asia to delineate
mini-grid developments in rural areas, combining satellite
data, on-the-ground data surveys and the Internet of Things
to develop a village profile and propose an optimised mini-grid
design.133
Both Ethiopia and Nigeria use least-cost geospatial
integrated energy plans to delineate opportunities for mini-
grid extension.134
165

BUILDING SUSTAINABLE BUSINESS
MODELS FOR DREA
MINI-GRID MODELS FOR PRODUCTIVE USES
One strategy to sustain mini-grid companies is to increase the
average revenue per user, maintaining a controlled financial risk.
Key to this is engaging with communities that demonstrate stable
income and growth potential for productive uses of the energy. The
stakes are high, as an increase in productive uses can reduce the
levelised cost of electricity for the mini-grid by 25% or more.135
Of the 37 mini-grid projects financed by the Energy and
Environment Partnership Trust Fund (EEP Africa), the most
common productive uses that customers engage in are
illumination and service provision (30%), light manufacturing
(such as welding or carpentry) (24%), agri-processing (22%)
and cold storage (13%).136
EEP Africa approved funding in 2020
to support several innovative mini-grid business models that
include productive uses.137
In Rwanda, it is supporting East
African Power in developing a hydropower plant and mini-grid
that will service households, community buildings, an agricultural
centre of excellence and a women’s aquaculture business.138
In
Uganda, EEP Africa is supporting efforts by Equatorial Power and
ENGIE to deploy four solar-hybrid mini-grids (with an industrial
park as an anchor client) as well as an incubation programme that
enables local women entrepreneurs to access asset financing for
productive use appliances.139
Some companies involve local communities in identifying mini-
grid needs and ways to grow demand. Miowna SA, a joint venture
of PowerGen and Sunkofa Energy, won a competitive tender run
by the Benin Off-Grid Clean Energy Facility in 2020 to electrify
40 villages in Benin.140
Miowna worked with communities and
other local stakeholders to identify innovative value propositions
through productive uses that will help boost local incomes and
make mini-grids viable.141
In Uganda, Equatorial Power and ENGIE
are building a solar mini-grid to bring power to 15,000 people in
the Lake Victoria area, including through productive uses such
as electric mobility (including boats and e-motorcycles) and an
agriprocessing hub to deliver water purification, ice making, fish
drying and other value-added agricultural services.142
Providing energy as a service through productive uses tends
to bridge the unregulated market for solar home systems and
the regulated mini-grid market, especially in terms of service
quality. OKRA Solar uses the strategy of offering flexible, scalable
interconnected solar home systems that can be progressively
interconnected to form a mini-grid; this has the advantage of
being able to adapt the system configuration to the actual load
and to secure investments. In Cambodia, OKRA Solar electrified
140 households with its adaptable solution, at a total cost that
the company claims is 40% lower than a traditional mini-grid
set-up featuring a centralised solar and storage system and a
low-voltage distribution network.143
Another area of potential growth is delivering renewable energy
solutions to the mining sector.144
This includes supplying reliable
power to ensure continuous operations, as national grids often
are unable to provide such services because grids are remote,
may lack reliability or have high power costs. Globally, the global
mining sector currently sources around 5 GW of renewable energy
capacity, driven by the need to reduce both greenhouse gas
emissions and operational costs (62% of the energy used in mining
comes from fossil fuels).145
Options include replacing heavy fuel oil
generators with solar PVbattery hybrid on isolated grids.146
ENERGY AS A SERVICE
The productive uses segment is possibly a market on its own,
which requires working with developers and communities as
a trusted partner to deliver, maintain and finance productive
appliances. For example, the start-up EnerGrow seeks to
improve the profitability of electricity distribution companies
(both grid-connected and off-grid) by financing consumer assets
that increase energy consumption, ability to pay and economic
output.147
EnerGrow serves as an asset-based, de-risking partner
that delivers the goods and provides a guarantee during the loan
period, while monitoring income and impact. The company is
active in Uganda and seeks to replicate its business model in
conjunction with the most active energy access programmes,
such as in the DRC, Kenya and Nigeria.148
Although most of the productive use programmes focus on
businesses, the bulk of grid connections and associated costs
are in the household segment. Significant potential lies in
electric cooking (through electric pressure cookers or induction),
especially in urban and peri-urban areas, where cooking relies
largely on charcoal and where these technologies can provide
both an additional load and revenue to grid operators as well as
savings to end-customers.149
Cooking devices may be eligible for
carbon certificates, representing an additional income source for
retailers. (p See Clean Cooking section in this chapter.)
For the agriculture sector, various productive uses can support
an increase in productivity and valueadded. Sustainable cooling
solutions can be integrated alongside energy access, energy
efficiency, agriculture and healthcare interventions in rural areas.150
DREA technologies allow for solar applications in irrigation,
drying, post-harvest cooling (including to improve the production
and preservation of milk and dairy products) and water pumping
(including to improve the supply of water and feed for dairy cows).
In East Africa, there are needs for solar-based irrigation, cooling
166

i The level of access to MECS is tracked by ESMAP’s multi-Tier framework, which nuances access along the dimensions of exposure to pollutants, efficiency,
safety, affordability, availability and convenience.
04
DISTRIBUTED
RENEWABLES
FOR
ENERGY
ACCESS
and processing for horticulture and dairy.151
Across sub-Saharan
Africa, the market for off-grid solar cold storage solutions is an
estimated USD 6.25 billion, with 5 million potential customers in
Kenya alone.152
Under its sustainable cooling project portfolio, Private Financing
Advisory Network (PFAN) evaluated 35 project applications with
a total investment ask of USD 150 million.153
PFAN reports a cluster
of projects related to solar PV-powered cold storage facilities for
aquaculture and agricultural applications.154
The projects involve
small, modular cold rooms powered primarily by off-grid solar
PV. Several of these projects reportedly are supported by digital
platforms delivered via mobile phone technology that include the
device in the larger supply chain management process.155
In Kenya, SokoFresh has developed two different models: a
flat monthly lease per cold storage for larger contract farmers
(business-to-business) and a rental fee per kilogram stored
per day (coolingas-a-service) for smallholder farmers and
co-operatives in off-grid areas.156
In India, Inficold provides solar-
based cold storage solutions to reduce perishable waste, with
an estimated USD 1.6 billion market in the milk and dairy sector
and a further USD 900 million market opportunity in cold storage
for fish, meat and eggs.157
ColdHubs in Nigeria provided cold
room utility to more than 5,200 smallholder farmers, retailers, and
wholesalers in 2021, storing more than 40,000 tonnes of food.158
CONSUMER PROTECTION
A key challenge facing the productive appliance sector is the
price competition with poorly manufactured, less-efficient
products, which are sub-standard in advanced markets and tend
to be redistributed to sub-Saharan Africa. For most consumers in
the energy access sector, price is the leading driver of purchases.
However, few developing countries have adopted regulations on
minimum energy performance standards (MEPS), which promote
high-performing, durable appliances.
The VeraSol initiative, launched in 2020 and led by CLASP and
the Schatz Energy Research Center at Humboldt State University,
is an extension of the Lighting Global initiative to encompass
productive uses and component-based solar home systems.159
VeraSol offers methods, testing capabilities, and baseline levels
of product quality for consumer protection, among others. It
features a database of certified products including solar energy
kits, electric pressure cookers, televisions, fans, refrigerators and
solar water pumps. Such frameworks offer governments and
donors the possibility to incentivise and support companies and
initiatives that rely on efficient appliances for energy access.160
Kenya’s 2016 energy regulations include technology-specific
MEPS for refrigerators, air conditioners, lighting, motors and
(magnetic)ballasts.161
InBurkinaFaso,ANEREE(AgenceNationale
des Énergies Renouvelables et de l'Efficacité Énergétique) has
adopted energy efficiency certifications for many appliances,
as well as labelling for energy performance, which enables
equipment to be excluded from the VAT.162
Key challenges facing
the country include the
prevalence of low-quality
appliances and minimal
capacity to enforce
the certifications and
standards; additionally,
developing productive
uses requires delivering,
selling, maintaining and
supporting the financing
of appliances relevant to
the community.
CLEAN COOKING
Of the 4 billion people who lacked access to “modern energy
cooking services” (MECSi
) as of 2021, an estimated 1.25 billion
were in the process of transitioning from having “no” or
“limited” access to having “high quality” access.163
The shift is
occurring most rapidly in East Asia and in Latin America and
the Caribbean, whereas sub-Saharan Africa has the lowest rate
of people transitioning to high-quality access.164
However, rapid
urbanisation in Africa is bringing consumers closer to cleaner
cooking sources such as electricity.
By early 2021, 67 countries had included household energy or
clean cooking goals in their NDCs under the Paris Agreement.165
Rwanda seeks to provide 80% of its total population (and 50% of
its urban population) with access to modern efficient cookstoves
by 2030.166
Nepal announced a target to have 25% households
using electric stoves by 2030.167
By early 2021,
67 countries
had included household
energy or clean cooking
goals in their NDCs under
the Paris Agreement.
167

i These depend, for example, on cooking practices and fuel availability, with each technology solution addressing different needs.
USD (million)
40
30
20
10
2016
2015
2014 2019
2017 2018
Other clean cook stoves
Liquefied petroleum gas
(LPG) stoves
Biogas stoves
Biomass stoves
0
Over the past two decades, the primary fuel mix for cooking has
diversified away from wood biomass and liquefied petroleum gas
(LPG). Although the global population using wood biomass for
cooking increased from 1.8 billion in 2000 to 2 billion in 2010, it fell
back to 1.8 billion between 2015 and 2019.168
In 2019, the number
of people using gaseous fuels (e.g., LPG, natural gas and biogas)
for cooking surpassed the number of people using fuelwood, to
reach a total of 1.9 billion.169
Electricity also gained traction, with
546 million people using electric cookstoves in 2019, an increase
of 360 million in less than a decade.170
The distribution and sale of new cookstoves has increased,
spurred by the emergence of new and competent supply chain
participants such as manufacturers and last-mile distributors
in the clean cooking markets. Although cookstove sales stalled
between 2017 and 2019, with a recorded USD 41 million in
revenue in 2019, sales in 2020 were nearly double those in 2019.171
Of stove sales using the PAYGo model, 62% were sold in Zambia,
17% in Uganda and 14% in Kenya.172
Despite high sales of clean cookstoves in 2020, the COVID-19
crisis disrupted supply chains and tempered demand. Of
111 companies surveyed by the Clean Cooking Alliance, 30%
reported a temporary cessation of operations, and two-thirds
reported moderate-to-severe disruptions in activities during the
year.173
Non-biomass models accounted for a record 42% of the
clean cookstoves purchased in 2019, continuing the five-year
shift away from biomass cookstoves towards cleaner ones.174
(p See Figure 49.) In 2020, sales of biomass cookstoves grew 5%
relative to 2019.175
The range of technologies available in the clean cooking sector
reflectsthediversityofcustomertypesi
andissupportedbyavariety
of business models (mainly PAYGo, carbon credits, results-based
financing and grants). LPG and ethanol are used mainly in urban
areas, where population density, higher incomes and established
distribution networks allow these fuels to compete favourably
with traditional options such as charcoal and kerosene.176
In rural
areas, biogas is a proven alternative to charcoal and harvested
wood; its use has grown steadily since 2010, particularly in
Africa.177
(p See Figure 50.) In India, the use of biogas for cooking
fell 18% (by nearly 2 million people) over the decade, whereas in
China it was up 4% (by 4.5 million people).178
Source: Clean Cooking Alliance. See endnote 188 for this chapter.
FIGURE 49.
Cookstove Sales by Type, 2014-2019
168

i Today, upfront expenditures are in the range of USD 50 to USD 100 for LPG and electric stove kits, USD 75 to USD 100 for gasifier stoves, and USD 500 to
USD 1,500 for biogas, which suggests the need for pay-per-use models.
Thousands of people
Thousands of people
400
800
1,200
1,600
400
800
1,200
1,600
2,000
2,000
2019
2015
2,000
2,000
2019
2015
S
e
n
e
g
a
l
I
n
d
o
n
e
s
i
a
K
e
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i
a
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a
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b
o
d
i
a
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a
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g
l
a
d
e
s
h
V
i
e
t
N
a
m
N
e
p
a
l
0
20,000
40,000
60,000
80,000
100,000
120,000
I
n
d
i
a
C
h
i
n
a
S
e
n
e
g
a
l
I
n
d
o
n
e
s
i
a
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e
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y
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t
h
i
o
p
i
a
C
a
m
b
o
d
i
a
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d
e
s
h
V
i
e
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N
a
m
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e
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a
l
0
20,000
40,000
60,000
80,000
100,000
120,000
I
n
d
i
a
C
h
i
n
a
04
DISTRIBUTED
RENEWABLES
FOR
ENERGY
ACCESS
Source: IRENA. See endnote 191 for this chapter.
FIGURE 50.
Number of People Using Biogas for Cooking, Top 10 Countries in Africa and Asia, 2015 and 2019
Technology use depends on the availability of locally sourced
feedstock and processing facilities. If either of these is not
available in sufficient quantities, this can make clean cooking
technologies less competitive with traditional alternatives.179
The
use of wood pellet fuels also has increased.180
The affordability of clean cooking appliances and fuels is critical.
At recent price levelsi
, these technologies have not been able to
compete with no-cost fuel solutions when external factors such
as safety, health and economic potential are not internalised.181
The main market potential for clean cooking lies with consumers
who are currently paying for wood or charcoal, mainly in urban
and periurban areas.182
In recent years, member companies of
the Clean Cooking Alliance that serve only urban consumers
raised more capital than companies with rural customers, due to
the need to secure return on equity from customers with higher
incomes located in urban settings.183
(p See Figure 51.)
The
affordability of
clean cooking
appliances
and fuels
is critical.
169

Share of total investment (%)
100
60
80
20
40
2016
2015
2014 2019 2020
2017 2018
Companies serving
just rural customers
e 6 - can we please have the rural urban customer in the middle and in green as a way to show the combination of the two others; rural (top blue) an
Companies serving
just urban customers
Companies serving
both rural and urban
customers
0
The policy landscape for clean cooking stalled in 2021, due in
part to the impacts of the pandemic. Rising oil prices also posed
challenges for large-scale LPG programmes in some countries,
such as Nigeria and India, where the prices for LPG canisters
nearly doubled during 2021.184
Among policy developments, the
Go Electric campaign launched in India in February 2021 aims
to raise national awareness of the benefits of electric mobility
and cooking.185
Kenya committed to including 100% access to
clean cooking by 2028 in its Bioenergy Strategy 2020-2027.186
As the shift to biogas progresses, the use of LPG and natural
gas for cooking likely will continue to grow, and electric cooking
also has significant growth potential.187
A recent study identified
Bangladesh, China, India, Indonesia, Kenya, Malaysia, Nigeria,
Peru and Uganda, among others, as strong growth countries
for mini-grid and stand-alone electric cooking.188
Notably,
some of the countries identified in the study (including India,
Indonesia, Kazakhstan, Mexico, Malaysia and Thailand) have
renewable energy shares of less than 40% in their electricity
mix, suggesting the need for strong policies to decarbonise the
electricity supply.
Adoption is a major hurdle for the sector. In many countries
with a high penetration of clean primary fuels, users of clean
stoves continue to use traditional fuels and stoves.189
A study in
Nigeria revealed how cultural preferences such as food taste,
fuelling practices and cook pan size have impeded the adoption
of cleaner cookstove designs, despite high awareness.190
Note: The data rely on self-reporting by the companies and have been supplemented with publicly available investment data. The number of companies
reporting has varied between 39 and 51 during the years 2014 to 2020.
Source: Clean Cooking Alliance. See endnote 197 for this chapter.
FIGURE 51.
Investment Raised by Clean Cooking Companies Based on Customer Location, 2014-2020
170

04
DISTRIBUTED
RENEWABLES
FOR
ENERGY
ACCESS
BUSINESS MODELS
The clean cooking supply chain, although growing stronger,
remains nascent, as it has not yet achieved the scale required for
the size of market it should serve.191
Companies are manufacturing
mainly in small batch series, and most are pre-profitable.192
Despite improving sales volumes and consumers, only a minority
of companies have realised sales revenues above USD 1 million.193
For consumers, paying for a service through PAYGo is equivalent
to purchasing solid fuels on a regular basis; this enables clean
cooking solutions to compete with traditional fuels in areas
where fuel is not free. Smart devices also can open avenues for
broad uptake of carbon finance to fund stove programmes.194
In
addition, smart devices have unlocked possibilities for PAYGo
technology in the biogas sector.195
Small LPG start-ups, such as KopaGas and PayGo Energy,
dominate the use of PAYGo in clean cooking. However, in 2020
ENGIE Africa announced a new partnership with the PAYGo
gas company PayGas in South Africa to support two new LPG
refilling stations that can service 4,000 homes.196
PayGas plans to
scale its operations to other African countries.197
In rural areas, pre-fabricated “smart” biodigesters are being
tested that bundle productive uses in their offer, which includes
PAYGo. ATEC offers the option in Cambodia of either upfront
payment or a monthly fee for delivering services such as organic
fertiliser, free cooking gas and waste management services.198
Globally, Sistema.bi offers a prefabricated biodigester bundled
with several productive appliances and services, such as biogas
for thermal energy, biogas and biofertiliser.199
Another emerging trend is the bundling of electricity and clean
cooking services, with both solar home systems and mini-grid
operators entering this space. In a pilot in six mini-grid locations
in Tanzania, households exposed to electric pressure cookers
found the technology to be time efficient and convenient and said
they may continue using the service.200
Some stove producers
are looking to enter the market for low-level electricity access
services, such as small lighting appliances; a key example
is Africa Clean Energy’s ACE One product, which combines
cooking, lighting and electricity.201
Business models appear to be converging for companies that
increasingly serve as software and lending platforms, with the
hardware component adapting to fit various market segments
through energy as a service. In Rwanda, Bboxx offers a package
combining PAYGo solar with PAYGo cooking solutions.202
Meanwhile, Biolite – a charcoal and wood stove producer and
solar lighting start-up that is active in 17 countries and operates
a network of 30 distributors – announced that it would start
distributing off-grid solar solutions, leveraging the Angaza retail
network.203
Other hybrid models include ACE Drive, which
delivers a biomass cookstove with a smartphone, charger and
LED lighting.204
Ethanol is used minimally as a renewable cooking fuel but
has potential because it is relatively easy to distribute.205
The
traditional model has been bottling and bulk distribution, but
in 2019 KOKO Networks launched a decentralised distribution
model in Nairobi, Kenya with the fuel infrastructure company
Vivo Energy.206
Customers can pre-pay digitally for the ethanol
canisters, as alternatives
to other fuels, which are
generally cheaper (40%
for charcoal and 10%
for kerosene), and then
top them off at around
700 ethanol vending
machines (KOKO Points)
in corner shops around
the city.207
The company
sells its own ethanol
stoves, manufactured in
India, and was serving 50,000 households by August 2020.208
In
June 2020, it received results-based financing under the Dutch
SDG 7 programme for a further 250,000 connection points.209
INVESTMENT AND FINANCING
Financing for the clean cooking sector is shifting from grants
to corporate equity. The Clean Cooking Alliance recorded
USD 70 million in transactions in 2019, up 75% from 2017.210
Most of these transactions (60%) were equity and only 11%
were grants (versus 40% and 25%, respectively, in 2017).211
This
investment is highly concentrated: in 2020, just seven companies
accounted for more than 90% of the total investment tracked by
the Clean Cooking Alliance.212
Just four companies accounted
for half of the capital raised: Circle Gas (Kenya, PAYGo LPG),
Sistema.bio (Central America, biogas), KOKO Networks (Kenya,
ethanol) and Biolite (Kenya, biomass stoves).213
Data from the
Clean Cooking Alliance records USD 60.7 million in 2020.
Compound annual growth of 20% annually was reported for
the period 2014-2020, well below the estimated USD 4.5 billion
annual investment required for universal access to clean
cooking.214
For the 51 companies surveyed by the Clean Cooking Alliance,
nearly 80% of the capital raised during 2017-2019 (a total of
USD 144 million) came from private investors, while 20% came
from multilateral finance institutions, development finance
institutions and governments.215
(p See Figure 52.) The funds
went primarily to LPG (26%), biomass stoves (25%) and biogas
systems (19%), followed by ethanol (14%), processed biomass
(12%) and electric systems (3%).216
Companies targeting
populations in urban areas raised twice as much capital as
those addressing rural areas over the period.217
Uptake of crowdfunding models for energy access also has
occurred. Despite the COVID-19 pandemic, crowdfunding
platforms for clean cooking have posted notable growth,
raising a cumulative USD 8 million in investments between
2014 and 2020.218
Crowdfunding vehicles have included peer-
to-peer (P2P) business lending, P2P micro-lending, equity,
donations, rewards and initial coin offerings (ICOs).219
Of these
models, P2P transactions and ICOs hold opportunity for the
immediate- and medium-term scale-up of the sector. Although
P2P business lending inflows comprise 99% of the clean
cooking crowdfunding, cryptocurrencies are at an early stage of
adoption, and ICOs could be integral in the future in providing
quick alternative options for securing much-needed financing
for scale-up.220
Business
models
for electricity and clean
cooking tend to converge
through the PAYGo model.
171

40.0 Concessional
114.4 Private investors
114.4 Private investors
3.6 Crowdfunding
3.6 Crowdfunding
14.0 Multilateral/Bilateral DFI
14.0 Multilateral/Bilateral DFI
12.3 Government
12.3 Government
8.3 Foundation
8.3 Foundation
Investment Source
Entities that invest in the sector
Investment Source
Entities that invest in the sector
Investment Source
Investment Source
Investment Type
Primary purpose of investment
Investment Type
Primary purpose of investment
Investment Instrument
Financial instrument
used for investment
Financial instrument
used for investment
25.3 Philanthropic grant
25.3 Philanthropic grant
87.3 Commercial capital
87.3 Commercial capital
75.9
Equity
75.9
Equity
51.4
Debt
51.4
Debt
25.3
Non-repayable grant
25.3
Non-repayable grant
All values in million USD
Private investors
lncludes private commercial funds, impact
funds, angel investors and founders
Crowdfunding platforms
Online platforms that typically provide equity
and debt to companies by collecting small
amounts of money from a large group of
people
Multilaterals/Bilateral Development
Financial Institutions (DFIs)
lncludes financial institutions typically set by
governments or charitable organizations that
provide risk capital on concessional terms.
The source of capital for DFls may be public
or private
Government
lncludes programs that typically provide
non-return seeking capital such as grants to
support industries and companies
Foundations
lncludes non-profit organizations or charitable
institutions that provides grants or
concessionary capital for charitable
or catalytic purposes. Foundations may raise
capital through private or public sources
Investment Type
Investment Type
Commercial capital
Defined here as capital seeking
purely a financial return
Concessionary capital
Defined here as capital that seeks
sub-commercial financial returns
along with impact returns
Philanthropic grant
Defined here as a type of capital as
distinct from non-repayable grants,
used as a capital instrument
Non-repayable grant
Grant is defined as
non-financial return seeking
capital typically made for
charitable purposes
Source: Clean Cooking Alliance.
FIGURE 52.
Clean Cooking Capital Raised by Source and Type, 2017-2019
172

04
DISTRIBUTED
RENEWABLES
FOR
ENERGY
ACCESS
Companies progressively are incorporating carbon finance in their
revenue models; such financing increased from USD 0.5 million
in 2017 to USD 5 million in 2019, primarily from biomass stove
manufacturers under the Clean Development Mechanism.221
Carbon financing has great potential, particularly with the
emergence of carbon accounting methodologies that rely on
continuous monitoring though smart devices. In October 2021,
the Gold Standard released a new methodology for metered
energy cooking devices that applies to LPG, electric, ethanol, and
biogas stoves, which could provide solid ground for rapid growth
in the carbon revenue model.222
Varying financing instruments have been deployed to support
enterprise growth and attract private equity. The BIX Fund
provides debt, equity and mezzanine capital and triggers
innovative financing, such as debt instruments based on carbon
uptake and result-based financing.223
SPARK+ Africa provides
debt and quasi-equity and also blends senior debt from large
and institutional financers, equity provided by development
finance institutions and impact investors, and first loss provided
by impact investors and donor facilities. As the world’s largest
impact investment fund focused on clean cooking and the fuel
value chain, SPARK+ Africa has raised at least USD 40 million for
new projects across sub-Saharan Africa.224
The sector is also supported by non-financing programmes,
such as the Venture Catalyst Programme for the Clean Cooking
Alliance to support technical assistance and grants to improve
business models and support scale-up.225
ELECTRIC MOBILITY
Electric transport is growing strongly globally, including in India
and several countries in Sub-Saharan Africa.226
In India, of the
87,659 electric vehicles procured through government-backed
incentives in 2021, 97.5% were two- and three-wheelers and
buses (a total of 6,265 e-buses).227
The number of government-
supported programmes that promote micro-mobility in rural
communities – including connections to mini-grids as part of a
strategy to increase productive uses – is increasing.228
Some African countries have integrated electric mobility into
national climate action plans, such as their Nationally Determined
Contributions (NDCs) towards reducing emissions under the
Paris Agreement.229
Rwanda’s Green Growth and Climate
Resilience Strategy is mobilising USD 900 million for electric
vehicles and associated charging infrastructure.230
Kenya set a
target for 5% of its registered vehicles to be electric by 2025.231
International programmes such as the Global Electric Mobility
Programme sponsored by the Global Environment Facility (GEF)
also hold promise for the sector. In mid-2021, the GEF announced
support for pilot projects and policy development initiatives in
29 additional countries, bringing the total number of countries
with GEF-funded electric mobility to 50.232
Electric motorcycle
demonstration projects are operating in Kenya and Uganda
as part of the UN Environment Programme’s global emobility
programme, which supports projects for electric two- and three-
wheelers in 16 countries, light-duty vehicles in 25 countries and
electric buses in 14 countries.233
The start-up Sokowatch has
deployed electric tricycles to address the logistical challenge
of restocking, and microgrid developers are boosting network
demand by selling electric bikes coupled with a battery-as-a-
service approach.234
At the crossroads of transport and access, Powerhive in Kenya is
testing a business model for battery charging as a service with
its solar-powered mini-grids in the country’s west.235
Through
the pilot service, subscribers can swap out the batteries of their
converted Bajaj bikes for newly charged ones when they become
depleted, paying for the difference in the state of charge.236
India’s common service centres launched a rural electric mobility
programme in 2021, and Guraride in Rwanda is improving its
green public bikeshare system, which includes e-bikes.237
Kenya and Uganda are thriving markets for electric mobility,
and the potential remains significant. Uptake of conventional
motorcycles is surging, with motorcycle imports increasing three-
fold compared to car imports over the last two decades.238
In
Kenya, the company Opibus, in partnership with Uber, is aiming
to deploy 3,000 electric
motorcycles by 2022, and
the start-up company
Stimaboda is providing
a charging service for
electric moto-taxis,
beginning in Nairobi.239
Electric
transport
is growing strongly
globally, including in India
and several countries in
Sub-Saharan Africa.
173

Funding Renewable Energy via Green Banks
In 2019, the government of New Zealand established New Zealand Green Investment Finance
(NZGIF) with initial capital of NZD 100 million (USD 68.3 million). This “green bank” is
mandated to reduce greenhouse gas emissions by enabling capital flows and increasing direct
investment (in the form of equity and debt) in target sectors such as transport, process heat,
energy efficiency, agriculture, distributed energy resources, plastics and waste. In 2021, the
bank received a further NZD 300 million (USD 205 million) in capital investment, quadrupling
its initial pool in only two years, to NZD 400 million (USD 273.3 million). So far, the investments
have resulted in lifetime emission reductions of around 250,000 to 300,000 tonnes of CO2.
For example, NZGIF invested in the SolarZero project, which provides households in New Zealand
with cleaner and cheaper renewable energy at a flat rate for 20 years. As of early 2022, the project
had expanded its distributed energy network to more than 4,800 residential clients and generated
a total of 16.9 GWh of solar electricity, with the energy savings averaging 40-50% of a household‘s
electricity consumption. In 2021, it equipped 800 customers and installed 500 batteries. Customers
can save NZD 230 (USD 157 million) annually and avoid 15 tonnes of CO2 emissions on average
during the 20-year period. Since the project’s launch, residents have saved around NZD 2.3 million
(USD 1.5 million) on their power bills.
As part of the SolarZero project, NZGIF is committed to providing NZD 10 million to NZD 30 million
(USD 6.8 million to USD 20.5 million) in debt facilities to corporations to generate large-scale solar
power at their facilities. The project also aims to expand renewable energy in schools through
an NZD 8 million (USD 5.4 million) debt facility and NZD 10 million (USD 6.8 million) in reserve.
In addition, NZGIF has invested in electrifying vehicle fleets through the company Sustainable
Fleet Finance, which relies on an NZD 10 million (USD 6.8 million) credit facility as well as an
NZD 10 million (USD 6.8 million) facility provided by New Zealand Post.
SNAPSHOT. NEW ZEALAND
02
05

i Data are from BloombergNEF and include the following renewable energy
projects: all biomass and waste-to-energy, 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 and referred to as small-scale projects or small-scale distributed
capacity; all ocean energy projects; and all biofuel projects with an annual
production capacity of 1 million litres or more.
05
lobal new investment in renewable power and fuels
(not including hydropower projects larger than
50
megawatts, MW) reached a record high in 2021,
at an estimated USD 366 billioni
.1
This was a 6.8% increase over
2020, due largely to the global rise in solar photovoltaic (PV)
installations.2
Investment in renewable power and fuels has
exceeded USD
250
billion annually for eight consecutive years.3
(p See Figure 53.) These estimates do not include investment in
renewable heating and cooling technologies, for which data are
not collected systematically.
Solar PV and wind power continued to dominate new investment
in renewables, with solar PV accounting for 56% of the 2021
total, and wind power for 40%.4
The strong growth in solar PV
investment in 2020 expanded further in 2021, rising nearly 19%
to reach USD 205 billion.5
Wind power investment fell 5% to
USD 147 billion, reflecting a sharp decline in offshore wind power
investment (down 45%) and a smaller increase in onshore wind
power investment (up 16%).6
Investment in other renewable
energy technologies, including biomass, waste-to-energy,
geothermal power, and small hydropower, declined overall.7
INVESTMENT
FLOWS
05
G
 Global new investment in renewable
power and fuels reached an estimated
USD 366 billion in 2021, a record high, despite
impacts from the COVID-19 pandemic.
 Solar PV and wind power continued to
dominate new renewable energy investment,
with solar PV accounting for 56% of the 2021
total and wind power for 40%.
 China again accounted for the largest share
of global investment in renewable power
and fuels, with 37% of the total.
 Renewable power installations continued to
attract far more investment than did fossil fuel
or nuclear generating plants, with renewables
accounting for 69% of the total amount
committed to new power generating capacity
in 2021.
 The divestment trend continued in 2021 with
more than 1,400 institutional investors and
institutions worth more than USD 39 trillion
in assets committing to partially or fully
divesting from fossil fuels.
KEY FACTS
175

263.8
263.8
246.2
246.2
210.6
210.6
263.6
263.6
297.8
297.8
279.4
279.4
313.8
313.8
284.7
284.7
316.3
316.3
365.9
2016
2015
2014
2013
2012
2011 2017 2018 2019 2020 2021
0
50
100
150
200
250
400
350
300
342.7
342.7
Billion USD
Other RE
Wind power
Solar PV
~366
Billion USD
World
Total
Investment in electric vehicles and associated charging
infrastructure was up 77% to USD
273
billion in 2021.8
This
reflected the increased policy support for electrification in core
auto markets, new battery technologies, lower expected costs
and rising consumer adoption despite the COVID-19 pandemic.9
Investment in energy storage also reached a new record of
USD 7.9 billion in 2021, which may reflect falling technology costs
and growing political incentives and targets.10
INVESTMENT BY ECONOMY
Investment in renewable power and fuels varied by region, rising
in China, India, and the Middle East and Africa, but falling in
the Americas (due largely to a decrease in the United States)
and in Europe and Asia (excluding China and India).11
(p See
Figure 54.) China continued to account for the largest share of
global investment in renewables (excluding hydropower larger
than 50 MW), at 37%, followed by Europe (22%), Asia-Oceania
(excluding China and India; 16%) and the United States (13%).12
All other world regions accounted for 4% or less of the total.13
China’s overall investment in renewables increased 32% to
USD 137 billion in 2021.14
This was due largely to a bump in
solar PV investment, which grew 115% to USD 79 billion, a high not
seen since 2017.15
Investment in all other renewable technologies
in China fell, including wind power (down 9% to USD 58 billion).16
Renewable energy investment in China is driven in part by the
country’s long-term decarbonisation goals and by the growing
demand for power, which is high in comparison with countries in
the Organisation for Economic Co-operation and Development
(OECD).17
Investment in solar PV in China was boosted by large-scale
projects undertaken co-operatively by local and national
governments.18
The decline in wind power investment reflects the
comparatively lower price of Chinese wind turbines as well as the
shift in the national feed-in tariff (FIT).19
Beginning on 1 January
2021, the FIT rewarded onshore wind power projects with the
same remuneration as coal-fired power plants.20
Financial
support for offshore wind power was scheduled to stop in 2022.21
Investment in European renewable energy projects fell 5% to
USD 79.7 billion in 2021.22
Although solar PV investment grew
nearly 8% to USD 34.1 billion, investment declined in all other
renewable energy technologies in Europe, including wind power.23
Despite ambitious national targets for wind power development
in many countries, complex permitting rules and procedures
together with disrupted supply chains were partly to blame for
the drop in wind power investment across the continent.24
In Asia-Oceania (excluding China and India), investment in
renewables fell 11% to USD 56.8 billion.25
Contrary to the trends
in most other regions, solar PV investment declined 17%,
whereas the other renewable energy technologies saw moderate
investment increases.26
The drop in solar PV investment is
attributed largely to declines in Vietnam and to a lesser extent
in Japan.27
Vietnam, which became a major solar PV market in
2019 and 2020, had a commissioning deadline for its national FIT
in 2020, after which investment in solar PV was less attractive.28
In Japan, recent amendments to the national FIT negatively
impacted investment.29
Outside of these two countries, solar PV
investment in the region was more stable.30
In India, total new investment in renewables increased 70%
to USD 11.3 billion.31
Investment in all renewable energy
technologies increased in the country in 2021, with notable jumps
Source: Based on BloombergNEF. See endnote 3 for this chapter.
Note: Figure does not include investment in hydropower projects larger than 50 MW. BNEF data for previous years have been revised since the publication of
last year's Global Status Report.
FIGURE 53.
Global Investment in Renewable Power and Fuels, 2011-2021
176

INVESTMENT
FLOWS
05
in solar PV (up 68% to USD 7.5 billion) and wind power (up 92%
to USD 3.4 billion).32
Investment in solar PV and wind power
in India has been greatly supported by the implementation of
auctions, which have been widely successful and have resulted
in comparatively cheap renewable power purchase agreements
for stateowned utilities.33
In the United States, which attracted the most renewable
energy investment among developed economies, investment fell
nearly 17% to USD 46.7 billion in 2021.34
Countering the trends
in China and Europe, solar PV investment plummeted 29%
to USD 26.1 billion, and investment in wind power remained
unchanged, whereas investment in all other renewable energy
technologies increased.35
The drop in investment in the United
States is attributed largely to supply chain challenges, combined
with permitting and grid connection difficulties, the fall-off in
available federal tax credits, and continued uncertainty about
tariffs and other trade measures that impact module imports.36
Brazil’s total investment in renewables was up 27% to USD 11.6 billion
in 2021, surpassing for the first time the high of 2008, when the
country’s biofuel boom was in full swing.37
Solar PV and wind power
saw notable investment increases of 27% and 31%, respectively,
whereas investment in all other technologies declined.38
Solar PV
investment was supported in part by low interest rates resulting from
the COVID-19 pandemic as well as skyrocketing electricity prices
exacerbated by the country’s worst drought in nearly a century.39
Auctions, which were not held in 2020 due to the pandemic,
resumed in 2021, helping to support the investment boom in both
wind power and solar PV.40
Importantly, a revision of a law (5829) set
to pass in 2022 will introduce grid-access charges for residential and
commercial system owners after a 12-month grace period, which
has created a rush in solar PV development.41
Outside Brazil and the United States, renewable energy
investment in the Americas totalled USD 9.7 billion in 2021, up
7% from the previous year but still well below the highs in 2012,
2017 and 2019.42
Solar PV investment fell substantially (24%),
whereas investment increased for wind power (up 34%) and the
other renewable energy technologies.43
The decline in solar PV
investment in the region is due largely to drops in both Argentina
and Mexico, where auctions for renewable energy that had once
driven investment were placed on hold in 2021.44
Chile’s market
remained strong in 2021 with USD 3.4 billion in renewable
investment, although its total was not as high as in recent years.45
Colombia, still a nascent market for renewables, is showing
promising investment growth and reached a new high in 2021 of
USD 750 million, most of which was in wind power.46
Investment in renewables in the Middle East and Africa increased
19% to USD 12.8 billion.47
Although wind power investment fell
substantially, solar PV investment grew 41% to an all-time high
of USD 10.9 billion.48
Investment in the other renewable energy
technologies also saw notable increases.
Developing and emerging economies face unique challenges to
financing renewable energy projects compared to the developed
world. Investment in these countries is complicated by political
instability, macroeconomic uncertainty (related to inflation
and exchange rates), policy and regulatory issues, institutional
weaknesses and a lack of transparency.49
Country-related risks
and underdeveloped local financial systems also can directly
affect the cost of capital.50
For example, nominal financing costs
can be up to seven times higher in emerging and developing
countries than in developed countries, such as in Europe and the
United States.51
For the second year in a
row, solar PV is the only
renewable technology to
have an
increase in
investment .
177

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Billion USD
Billion USD
United States
Americas (excl. United States Brazil)
Brazil
Billion USD
Billion USD
Africa the Middle East
0
5
10
15
0
5
10
15
0
10
5
15
20
0
20
40
60
80
44.2
44.2
34.7
34.7
29.1
29.1
31.7
31.7
37.0
37.0
41.0
41.0
45.6
45.6
41.3
41.3
56.1
56.1
46.7
46.7
9.1
9.1
15.8
15.8
12.0
12.0
14.6
14.6
11.5
11.5
6.5
6.5
13.1
13.1
13.7
13.7
9.8
9.8
9.0
9.0
9.7
9.7
9.1
9.1
11.6
11.6
9.6
9.6
7.4
7.4
3.4
3.4
5.4
5.4
6.7
6.7
5.1
5.1
6.0
6.0
3.9
3.9
7.1
7.1
12.8
12.8
3.3
3.3
10.1
10.1
7.2
7.2
8.8
8.8
11.3
11.3
7.0
7.0
9.3
9.3
11.6
11.6
10.4
10.4
62.0
62.0
16.8
16.8
20
Source: Based on BloombergNEF. See endnote 11 for this chapter.
Note: Figure does not include investment in hydropower projects larger
than 50 MW. BNEF data for previous years have been revised since the
publication of last year's Global Status Report.
IMPACTS OF COVID-19
Investment in new renewable energy projects showed
remarkable resilience despite impacts from the COVID-19
pandemic.52
In the face of uncertain economic recovery, major
commercial banks were cautious about lending and more
reluctant to invest, leading to higher rates on loans, tighter
loan standards for borrowers and lower chances of attracting
the requisite project funding.53
Banks were more interested in
renewable energy projects proposed by developers that had a
track record of successful project completion than in projects
by first-time investors, such as community solar initiatives.54
The reduction in energy demand that resulted from pandemic
lockdowns also impacted renewable energy investment, which
was further complicated by disruptions in global supply chains.55
Governments, as part of their broader response to the COVID-19
pandemic, in many cases allocated dedicated funds to
support investment in renewables. As of October 2021,
FIGURE 54.
Global Investment in Renewable Power and Fuels, by Country and Region, 2011-2021
178

i Here, the International Energy Agency defines clean energy to include low-carbon electricity (renewable and nuclear power), fuels and technology innovation
(hydrogen, carbon capture and storage, biofuels and more), low-carbon and efficient transport (electric and efficient vehicles and others), energy-efficient
buildings and industry, electricity networks including smart-grid investment and people-centred transitions such as access to clean cooking.
INVESTMENT
FLOWS
05
Billion USD
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Billion USD
Europe
China
India
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Asia Oceania (excl. China India)
Billion USD
Billion USD
0
5
10
15
0
30
60
90
120
150
0
20
40
80
60
20
0
30
60
90
120
150
11.3
11.3
11.3
11.3
6.4
6.4
4.7
4.7
6.1
6.1
7.5
7.5
13.0
13.0
13.4
13.4
10.6
10.6
9.6
9.6
6.6
6.6
56.8
56.8
20.4
20.4
41.0
41.0
50.9
50.9
48.3
48.3
38.7
38.7
37.6
37.6
46.1
46.1
47.5
47.5
63.7
63.7
27.4
27.4
79.7
79.7
126.1
126.1
52.6
52.6
60.2
60.2
59.0
59.0
64.7
64.7
46.6
46.6
59.4
59.4
56.9
56.9
83.9
83.9
90.3
90.3
137.2
137.2
39.6
39.6
60.6
60.6
85.9
85.9
116.4
116.4
103.3
103.3
142.1
142.1
96.7
96.7
107.4
107.4
103.9
103.9
53.9
53.9
recovery programmes related to clean energyi
totalled
USD 470 billion, although this represented only 2.8% of the
total USD 16.9 trillion in fiscal support mobilised to respond
to the pandemic.56
These energy-related funds were largely
in developed countries and were channelled mainly through
existing programmes such as energy efficiency grants, public
procurement, utility plans and support for electric transport.57
In a notable exception, China allocated around USD 12 billion
to renewables as part of its response effort.58
Since 2011, more than
two thirds
of global investment in
renewable power and fuels
are concentrated among
China, Europe and the
United States.
179

Energy-related spending spanned the sectors of renewable
power, heating and cooling, and transport. Support for renewable
power included Italy’s pledge of USD 2.5 billion in investment for
the installation of around 2,000 MW of primarily solar PV plants
in small municipalities.59
The Australian government added
USD 1.03 billion to an existing fund that invests directly in new
renewable electricity, clean hydrogen production and similar
resource projects.60
In the heating and cooling sector, in Poland
USD 11 million was allocated to a research and development
programme dedicated to transitioning heating plants away
from coal and towards at least 80% renewable sources.61
In the
transport sector, Latvia, within its COVID-19 recovery framework,
dedicated USD 10 million to installing biofuel production capacity,
in line with its goal to achieve 7% renewables in the transport
sector by 2030.62
Governments also are dedicating COVID-19 related funds to
tackling energy poverty, which has increased in the wake of the
energy crisis.63
Spending dedicated to limiting energy poverty
has had mixed effects on the environment.64
While some
governments have promoted renewables and energy efficiency,
the most immediate measures include tax and direct support to
fossil fuels for transport and heating.65
(p See Snapshot: Spain.)
SNAPSHOT. SPAIN
Investing in Renewables to Tackle Energy Poverty
Globally, the COVID-19 pandemic and energy crisis have increased energy poverty and
exacerbated the risk to households of becoming energy poor. Spain is among the European
countries most adversely affected by this risk, as it has some of the highest electricity prices
in the region. In 2020, energy poverty impacted an estimated 17% of the population, and
10.9% of inhabitants could not properly heat their homes.
To tackle energy poverty, regional and local governments have implemented renewable
energy projects to reduce the energy burden of households. In 2021, the European project
PowerUp kicked off in the Spanish city of Valencia, with a budget of EUR 200,000
(USD 226,480). The project lifts administrative and regulatory barriers and offers tax
subsidies to support local solar PV energy communities. In the city of Zaragoza, the
Barrio Solar project spearheaded the installation of 100 kilowatts-peak of solar PV plants for
collective selfconsumption, supported by EUR 350,000 (USD 396,340) in public and private
funds. Small businesses and households will benefit from the electricity produced from the
project, with 20 low-income households receiving electricity for free.
In the wake of energy price hikes in late 2021, the Spanish government implemented several
tax and direct support measures, most of which promote the continued use of fossil fuels.
Meanwhile, part of the electricity bill reductions are financed by capping the revenues
of renewable energy producers. Two measures adopted in 2021 – a rate reduction in the
value-added tax (VAT) (from 21% to 10%) on electricity bills for most power consumers, and
suspension of the 7% generation tax – were extended to June 2022. In 2021, the government
allocated EUR 202 million (USD 229 million) to support the household heating expenses of
Spain’s most vulnerable consumers, with discounts covering up to 70% of a household’s bill.
Transport fuels receive the largest support: a minimum bonus of 20 cents per litre of fuel for all
consumers, while freight and passenger transport companies receive additional direct aid.
180

i Underwriting refers to the process of raising capital for companies by issuing bonds or shares on their behalf and selling them to investors.
23%
Fossil fuel
69%
Renewable
energy
8%
Nuclear
INVESTMENT
FLOWS
05
RENEWABLE ENERGY INVESTMENT IN
PERSPECTIVE
Renewable power installations continued to attract far more
investment in 2021 than did fossil fuel based or nuclear generating
plants. Maintaining the shares of the past few years, investment
in new renewable power capacity accounted for 69% of the
total investment committed to new power generating capacity
(including fossil fuels and nuclear).66
(p See Figure 55.)
Most scenarios that limit the increase in global mean temperature
are accompanied by a nearcomplete phase-out of fossil fuel
power generation (without carbon capture and storage) by 2100.67
These scenarios show dramatic increases in renewable energy
deployment.68
Thus, to meet climate change mitigation targets,
investment in new fossil fuel power capacity needs to plummet.
Despite this imperative, banks and investors have continued
to channel massive sums of money to fossil fuel industries
such as coal, oil and natural gas.69
(p See Sidebar 7.) During
2020-2021, financial institutions in six countries (Canada, China,
India, Japan, the United Kingdom and the United States) were
responsible for more than 80% of coal financing.70
Commercial
banks provided USD 363 billion in loans to the coal industry
during this period and channelled USD 1.2 trillion to coal
companies through underwritingi
.71
Commercial banks also play
a key role in financing tar sands oil (with USD 23.3 billion in
2021); arctic (USD 8.2 billion), offshore (USD 52.9 billion) and
fracked (USD 62.1 billion) oil and gas; and liquefied natural gas
(USD 22.9 billion).72
These investments have persisted despite
the risk of stranded assets that would accompany transitions
related to climate change mitigation.73
(p See Box 11.)
Source: Based on IEA. See endnote 66 for this chapter.
FIGURE 55.
Global Investment in New Power Capacity, by Type, 2021
Between 2020-2021 the
coal industry
received as much
investment as renewable
power and fuels in 2021.
181

i Through fossil fuel divestment, an institution makes a binding commitment to exclude any fossil fuel company (coal, oil and natural gas) from either all or part of its
managed asset classes, or to selectively exclude companies that derive a large portion of their revenue from coal and/or tar sands companies. Organisations also
may commit to some form of an exclusion policy based on different criteria, such as whether the company is aligned with the goals of the Paris Agreement.
DIVESTMENT
Since 2011, institutions worldwide increasingly have divested from,
or sold off their financial interests in, fossil fuel companies. By late
October 2021, around 1,485 institutions spanning 71 countries had
committed to fossil fuel divestmenti
, with estimated total assets of
around USD 39.2 trillion.74
Most early commitments to divestment
were in the United States, but by 2021 nearly 70% of institutions
committed to divesting were outside that country, demonstrating
the global shift of the movement.75
Large insurance companies,
pension funds and universities with massive endowments have
driven the biggest increases in assets committed to divestment.76
As of October 2021, faith-based organisations led in commitments,
accounting for 35% of total divestments, followed by educational
institutions (15%), philanthropic foundations (12.6%), pension funds
(12%) and governments (11.4%).77
Several important divestment-related announcements were made
across sectors during 2021. In the lead-up to the United Nations
climate talks in Glasgow in November, 72 faith-based institutions
from 6 continents, with more than USD 4.2 billion in combined
assets, announced their commitment to divest from fossil fuels.78
Harvard University pledged to pull its USD 41.9 billion endowment
from any company that explores or develops fossil fuels.79
La
Banque Postale in France committed to divest its USD 894 billion
in assets from oil and gas companies by 2030.80
The Ford
Foundation also announced that its USD 17 billion in assets would
no longer be invested in any fossil fuel-related industries.81
In the public sector, China announced in 2021 that it would build no
new coal-fired plants outside the country.82
That November, more
than 20 countries and 5 development institutions committed to
end international public finance of coal, oil and gas projects by the
end of 2022, and to steer funds to clean energy instead.83
Together,
these developments mark the end of nearly all major international
public finance of coal.84
In another partnership announced in
the lead-up to Glasgow, the governments of Indonesia and the
Philippines joined with the Asian Development Bank to establish
a mechanism that will use blended finance to accelerate the
retirement of new coal power plants and develop renewable
BOX 11. Investment in Potential Fossil Fuel Stranded Assets
The transition away from widespread fossil fuel use is critical
to avert some of the worst impacts of global climate change.
Among the implications of this energy transition for business-
as-usual behaviour is the likelihood of “stranded assets”, or
assets that turn out to be worth less than expected as a result
of economic changes related to the transition.
While assets can become physically stranded – for example,
because of rising sea levels – the term generally is used in
the context of economic stranding, where fossil fuel assets
fail to deliver expected returns over their lifetime as a result
of changes in relative costs and commodity prices. This also
encompasses the impacts of regulatory stranding.
Long-term demand for oil, natural gas and coal will be
impacted both by policy action on climate as well as by
the rapid deployment of low-carbon technologies such
as renewable energy, battery storage and hydrogen. This
weakening of demand creates transition risks for companies,
governments, and investors, as prices are likely to fall over
the long term, even if they remain volatile in the short term
because of imbalances between supply and demand.
The development of oil and gas projects is predicated on
anticipated cash flows over many years or often decades.
Thus, changes to long-term prices will impact the return
that companies – and ultimately their investors – derive from
these investments. Assets become stranded when, prior to
the end of their anticipated economic life, they are unable
to meet a company’s return threshold. They may, however,
continue to operate – the commodity price may exceed the
marginal cost of operations – but this does not mean that the
assets will deliver the expected return.
Carbon Tracker has quantified the risk of stranded assets for
companies engaged in oil and gas production (both listed
and state-owned), in terms of the capital expenditure that is at
risk under a low-carbon scenario. Globally, the analysts have
identified around USD 1 trillion in capital for new upstream
oil and gas projects that could proceed under a business-as-
usual scenario, but that ultimately are not needed if the world
follows a pathway aligned with meeting the goals of the
Paris Agreement. This reduction in need is driven by either
policy action or technological development, or a combination
of both. Other parts of the fossil fuel value chain are also
exposed to such risks, including coal-fired power generation
assets that are still being built in some regions.
Given the risks as well as the urgency of reducing fossil fuel
emissions, this capital would be better deployed elsewhere,
potentially financing the development and deployment of
new energy technologies (such as wind and solar) and
delivering stable, long-term returns for investors while
helping to accelerate the energy transition. It is critical that
investors and policy makers alike recognise the risks of
continuing to invest in assets that could become stranded,
exercising capital discipline to protect both their investments
and the climate.
182

INVESTMENT
FLOWS
05
energy to replace it.85
In addition, Durban became South Africa’s
second city to commit to divestment, pulling USD 130 million from
its two pension funds out of fossil fuels.86
(p See Cities chapter.)
The broader divestment movement has been called insignificant by
some, based on the argument that only a small portion of investors
will divest their holdings and divested shares will be bought by other
investors.87
Nonetheless, it has been shown that the divestment
movement has been accompanied by an overall reduction in capital
flows to domestic oil and gas companies.88
This reduction is less
prevalent in countries that heavily subsidise oil and gas, underlining
the need to remove fossil fuel subsidies if climate change mitigation
targets are to be met.89
The value of these subsidies fluctuates
from year to year depending on reform efforts, consumption of
subsidised fuels, international fossil fuel prices, exchange rates and
general price inflation.90
Some estimates for 2020 were in the range
of USD 5.9 trillion, although wide disagreement remains on how to
accurately calculate fossil fuel subsidies.91
Funds divested from fossil fuel companies are not necessarily
re-invested in companies associated with renewables.92
However, the global network DivestInvest links the two by
providing guidance to organisations and individuals during the
divestment process and encouraging them to establish climate-
friendly criteria for their investments (for example, by investing
in renewable energy companies, low-carbon transport, or
sustainable agriculture and forestry options).93
HSBC, in its phase-out policy for coal announced in late 2021,
included requirements for its impacted clients to establish
transition plans to clean energy, ultimately aiming to provide
between USD 750 billion and USD 1 trillion in sustainable finance
and investment to support the transition to net zero emissions.94
The European Commission and other governments announced
a partnership to decommission and repurpose South Africa’s
coal-fired power plants and invest in new low-carbon generation
technologies such as renewables.95
(p See Snapshot: South Africa.)
SNAPSHOT. SOUTH AFRICA
Linking Divestment with Clean Energy
South Africa is the largest coal producer and consumer in Africa.
Coal contributes more than 70% of the country’s energy supply and
accounts for 86% of its electricity generation. However, during the
UN climate talks in Glasgow in 2021, the South African government
took a major step towards divesting from coal by announcing
the Just Energy Transition Partnership, or “South Africa Deal”, in
conjunction with the EU and the governments of France, Germany,
the United Kingdom and the United States.
The partnership aims to support decarbonisation efforts in South
Africa by providing USD 8.5 billion in financing through grants and
loans over a five-year period. The three stated goals are to retire
current coal plants, aid clean energy sources and provide transition
support to coal-dependent regions of the country. The partnership
will also assist the national power utility, Eskom, in transitioning
from coal to renewables, a shift that is anticipated to
require USD 27 billion in investment.
The Just Energy Transition Partnership will support South Africa’s
efforts to speed decarbonisation while preventing up to 1.0 to 1.5 Gt
of emissions over the next two decades. The partnership will help
the country build a climate-resilient economy while supporting
vulnerable communities and promoting employment. As a pilot
project, it will likely spark interest among other countries – such
as India, Indonesia and the Philippines – that are seeking external
climate finance to reduce their coal reliance.
183

SHIFTING FRAMEWORKS FOR
INVESTMENT IN RENEWABLES
Investors wishing to address climate change and support
renewables are increasingly turning their attention to sustainable
finance options, in consideration of regulatory requirements,
risk management imperatives, and/or changes in demand and
asset allocation strategies. Three frameworks are increasingly
relevant for renewable energy finance and investment: 1) the
development of sustainable finance taxonomies at the national
and regional levels to provide information on the environmental
and/or social performance of enterprises and financial products;
2) systems rating the performance of enterprises according
to environmental, social and governance (ESG) criteria to
help assess the suitability of a company, activity or fund for
investment; and 3) green bonds, the proceeds of which may go
to renewable energy.96
Innovative financing options such as peer-to-peer trading models
based on blockchain technology also have begun to emerge.97
By
connecting renewable energy producers with potential buyers via
a decentrally managed transaction, such platforms can finance
projects that otherwise may not be funded.98
(p See Box 12.)
BOX 12. Using Blockchain for Renewable Energy Financing
Digital technologies are being proposed as a tool to help
achieve many of the United Nations (UN) Sustainable
Development Goals, including SDG 7 on Affordable and Clean
Energy. By improving the flexibility of power systems and
energy services, digital and smarter electricity networks can
allow for greater integration of renewable electricity sources.
Digital technologies enable new linkages and interactions
between energy supply and demand, support improved
energy planning and real-time monitoring, and facilitate the
use of distributed and decentralised energy resources.
At the same time, innovative approaches to renewable
energy financing are crucial to reduce emissions and
accelerate the energy transition. Renewable energy projects
typically face a mismatch between capital supply and
needs, and investors perceive high investment risks due
to large transaction costs during financing and to a lack
of liquidity and bankable projects in developing countries.
Distributed ledger technologiesi
have a seemingly large
potential to overcome many of these challenges by enabling
smart energy systems and clean energy financing.
Blockchain technology can unlock new approaches
to financing, including investment marketplaces that
connect project developers, investors and purchasers to
collaborate on a common platform. Sun Exchange, based
in South Africa, is using a blockchain-based micro-leasing
marketplace to democratise renewable energy financing
through crowdfunding. The platform allows individual and
corporate investors to buy solar cells that provide electricity
to businesses and organisations and earn money from the
clean power generated. By April 2022, Sun Exchange had
enabled more than 40 solar projects.
Blockchain technology also offers solutions to make power
purchase agreements (PPAs) more efficient and transparent.
PPAs are used to secure payment streams for renewable
energy projects and often are crucial to help developers
obtain the initial investment. However, PPA structures,
processes and standards are fragmented across countries
and markets, and this complexity is a barrier to raising
project funds. To ease such challenges, smart contracts on
a blockchain-based marketplace can enable transparent
transactions between power producers, purchasers and
investors on a common shared ledger. For example, Mojo
Power in Australia uses a blockchain platform provided by
WePower to facilitate PPAs for solar PV retail at a competitive
rate and with full transparency.
These new approaches can help build robust pipelines
of renewable energy projects for which various investors
can mobilise capital. The blockchain platforms that enable
such approaches remove frictions and allow complex
marketplace interactions to scale without compromising
trust – contributing to low-carbon power generation and a
pathway towards net zero carbon emissions.
i Distributed ledger technologies comprise digital infrastructure and
protocols that immutably enable simultaneous access, validation
and record-keeping across a network. Among these, blockchain is a
type of software in which digital transactions are grouped together
into blocks. See UN Innovation Network, “A Practical Guide to Using
Blockchain Within the United Nations,” May 21, 2020, https://atrium.
uninnovation.network/guide.
184

i Member countries include Brunei, Cambodia, Indonesia, Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
In discussion
Under development
In draft
In place
INVESTMENT
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05
SUSTAINABLE FINANCE TAXONOMIES
Sustainable finance taxonomies provide a classification of
economic activities with the aim of clarifying which investments
and/or activities may be defined as sustainable or “green”.99
Such
taxonomies can be relevant for renewables in two main ways:
1) for companies producing or manufacturing renewable energy
technologies; and 2) for the owners or operators of renewable
energy assets (such as a utility that operates a wind farm as part
of its broader portfolio).100
Such stakeholders would be eligible
for the technological screening of the taxonomy and thereby be
pre-screened for interested investors.101
Whereas some taxonomies are binary (“green”/”not green”),
others are more transition-oriented and have specific aims
to advance sustainable investment.102
Here, colour scales
commonly are used to indicate the extent to which activities
adhere to given principles.103
For example, renewables-related
economic activities may be coded “green”, while fossil fuel-based
activities that adhere to certain standards may be coded “yellow”
or “amber”, while yet other activities may be “red”, similar to traffic
light systems.104
The number of sustainable finance taxonomies in use or under
development has increased rapidly since the Paris Agreement
was signed in 2015.105
(p See Figure 56.) This expansion
continued in 2021, particularly in the lead-up to the UN climate
talks in Glasgow.106
In Asia, taxonomies are already in use in China, Indonesia,
Malaysia, Mongolia, and the Republic of Korea and are in various
stages of development in Bangladesh, India, Japan, Kazakhstan,
the Philippines, Singapore, Sri Lanka, Thailand and Vietnam.107
The Association of Southeast Asian Nations (ASEAN)i
released
the first version of its taxonomy in 2021, classifying economic
activities based on their grade of alignment, thus establishing
a framework within which member states can develop national
taxonomies.108
The national taxonomies in Indonesia, Malaysia
and Singapore were issued in alignment with this guidance.109
The EU Taxonomy was published in 2020, with its first stage of
mandatory compliance beginning in 2022.110
The taxonomy is a
binary classification system for economic activities that substantially
contribute to at least one of six environmental objectives established
in the EU regulation, while not significantly harming any of the
others.111
Large companies (of 500 employees or more) in the EU
are required to provide information to capital markets about the
environmental performance of their assets and economic activities,
as defined in the taxonomy, as well as their investment plans
to reach taxonomy-specified targets and criteria.112
Disclosure
requirements pursuant to the EU Taxonomy Regulation also
apply to financial products (p see ESG section below).
In 2021, the United Kingdom announced its requirements for
reporting under a green taxonomy to support sustainable investing
in the country.113
The Russian Federation also announced the
official adoption of its Green Taxonomy during the year.114
Source: Based on International Platform on Sustainable Finance. See endnote 105 for this chapter.
FIGURE 56.
Sustainable Finance Taxonomies Worldwide, in Place, Under Development and in Discussion, Early 2022
185

i These structures include sustainability-linked derivatives (SLDs), credit-default-swap indexes, exchange-traded derivatives on listed ESG-related equity indexes
and emissions trading derivatives.
ii Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
In view of the rapid deployment of sustainable finance taxonomies,
the Group of Twenty (G20) countries suggested in October 2021
that jurisdictions should “consider developing sustainable finance
taxonomies using the same language, voluntary use of reference
or common taxonomies, and regional collaboration.”115
In July
2020, China and the EU already had begun to develop a Common
Ground Taxonomy through a working group of the International
Platform on Sustainable Finance, identifying commonalities and
differences in their respective approaches.116
The cross-border
integration of taxonomies was a major discussion topic during
the Glasgow talks in 2021.117
However, the vested interests in
each country’s definitions make creating a harmonised taxonomy
across jurisdictions challenging.118
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)
ESG has shifted from being a niche focus to becoming a
component of mainstream finance in many OECD countries.119
Net inflows of investment into exchange-traded funds with ESG
traits totalled USD 128 billion in 2021, up 57% from USD 81.3 billion
in 2020.120
Despite this growth, there is no universally accepted
standard framework for companies to report on ESG metrics,
and the ESG market itself has mushroomed into several different
types of structuresi
.121
ESG financing is further complicated by a
lack of reliable data and by data inconsistencies.122
The categorisation of an organisation or its activities as ESG
may be based on a risk perspective (e.g., how environmental
risks may affect a company) and/or by an impact perspective
(e.g., the impact that a company or activity has on the outside
world).123
Companies that rate and value ESG funds more from
a risk perspective have been criticised for using methodologies
that ignore the larger (environmental) impact of a company on
the planet.124
As the impact perspective becomes increasingly
relevant to investors aiming for net zero carbon or clean
energy goals, a “double-materiality concept” is arising, which
incorporates both the risk and impact perspectives.125
This
approach may have more relevance for renewables.126
Relatedly,
ESG products increasingly are being used to assess a company’s
commitments and actions to transition to renewable energy.127
Regulators worldwide are faced with questions of how to define
what should and should not be considered under the ESG
label, in addition to the types of disclosure required and how to
track and audit sustainability-related statements.128
Relevant
for the “environmental” pillar of ESG, in 2017 the Task Force
on Climate-Related Financial Disclosures (TCFD) provided a
voluntary framework for reporting on climate-related risks and
opportunities.129
Here, renewable energy is considered in the
classification of climate-related opportunities; for example, utilities
may report on the share of renewables in their total electricity
generation.130
Since the inception of such voluntary disclosure
frameworks, a global trend has developed towards mandatory
disclosure.131
Brazil, Japan, New Zealand and the United Kingdom
are among countries that have aligned their regulatory reporting
frameworks with the TCFD guidelines.132
Europe’s Sustainable Finance
Disclosure Regulation (SFDR),
whichappliesprimarilytothe
sale of sustainable financial
products, uses key resource
efficiency indicators (such
as the use of renewables)
to help appropriately label
a given product.133
In June
2021, the Group of Seven
(G7) countriesii
agreed to
mandate climate-related financial reporting in line with the
recommendations of the TCFD.134
During the Glasgow talks in
November, the International Sustainability Standards Board
was established to create a comprehensive global baseline of
sustainability disclosures for capital markets, possibly building on
the TCFD.135
Despite the flurry of activity in developing disclosure
recommendations and regulations, asset managers and asset
owners have largely lagged in publishing consistent climate-
related metrics and targets.136
Disclosure in its own right has
been insufficient to redirect capital to low-carbon assets such
as renewable energy companies.137
Relying on improvements
in the information that is available to market players (such as
through standards, labels and disclosure requirements) does not
necessarily nudge the reallocation of capital.138
This is especially
true if the granularity, methodology and focus of the different data
providers are not coherent.
Central banks are uniquely positioned to counter this lack of
movement by supplementing this information or disclosure-
based regulation and helping to channel funding into
sustainable projects. Some central banks, largely in emerging
and developing countries, have developed policy tools based
on incentives or target quantities, often in line with sustainable
development goals.139
In Bangladesh, additional liquidity is
provided to commercial banks that lend to green projects such
as renewables.140
The Reserve Bank of India requires banks
to allocate 40% of their credits to priority sectors, including
renewable energy.141
The Bank of Lebanon differentiates reserve
requirements, reducing a commercial bank’s obligatory reserve
requirements by 100-150% of the loan value for a project.142
Central banks in the developed world typically have more narrow
mandates and thus have not implemented the same levels of
incentive-based support.143
A notable exception is in Japan, where
banks are offered more favourable refinancing terms based on
their lending to sustainable projects.144
Seven countries and
the EU have
sustainable
finance
taxonomies
in place.
186

i Value is the most recent available and is an average of 2019 and 2020 data, expressed in nominal (current) USD.
31%
Low-carbon
transport
7%
5%
Other
Buildings
57%
Renewable
Energy
42%
Solar PV
39%
Onshore
wind
10% Offshore wind
3% Bioenergy
3% Other
2% Hydropower
1%
Solar thermal
(incl. CSP)
Solar thermal
water heaters
51%
INVESTMENT
FLOWS
05
GREEN BONDS
Although various instruments are available to finance renewable
energy projects, green bonds in particular have become
prominent in recent years.145
Green bonds differ from traditional
bonds in that the proceeds are earmarked for qualifying
investments in renewable technologies or in various forms of
climate adaptation and mitigation. Investors obtain a certain
interest rate over a stipulated time period, and the funds must
be used for the purposes for which the bond was issued. This
provides investors with greater visibility over the actual use of the
funds than is the case for traditional bonds.
The COVID-19 pandemic impacted issuance of all bond types in
2020. In 2021, however, more than USD 522 billion in green bonds
was issued, a record high and well above the USD 298 billion
issued in 2020.146
Europe accounted for the majority of green
bond issuance in 2021 – more than half of the global total –
followed by Asia (led by China, Japan and Singapore).147
By
country, the United States maintained its lead in issuing green
bonds, increasing its volume 63% to USD 81.9 billion in 2021.148
In some instances, sustainable finance taxonomies have been
developed for green bonds.149
Such taxonomies typically are
applied on a voluntary basis (e.g., the Green Bond Standard in
the EU), although more uniform efforts have been developed
(e.g., in China).150
China’s Green Bond Endorsed Catalogue,
released in 2015 and updated in 2021, lists projects and
sectors eligible for green bond issuance and includes in its
qualifications “recycling, processing and utilisation of renewable
resources” as well as “new energy and clean energy equipment
manufacturing”.151
The United Kingdom’s green bond framework
of June 2021 lists renewable energy as one of six eligible project
categories.152
RENEWABLE ENERGY AND
CLIMATE FINANCE
Climate finance is any financing that seeks to support either
climate change mitigation actions (for example, renewable
energy generation, energy efficiency or low-carbon transport)
or adaptation actions (for example, disaster risk management,
waste and water, or resilient infrastructure). A total of
USD 632 billion in climate finance was allocated in 2019/2020i
,
up 10% from the previous two-year period, reflecting a steady
rise over the past decade.153
This increase continued despite the
impacts of the COVID-19 pandemic, which affected both the
demand for and delivery of climate finance in 2020.154
Climate finance flows were concentrated mainly in East Asia
and the Pacific (46% of the total, led by China), followed
distantly by Europe (17%) and the United States and Canada
(13%).155
Mitigation activities represented roughly 90% of the
total flows, or around USD 571 billion.156
A majority (57%) of
mitigation finance was investment in renewables, dominated
by solar PV and onshore wind energy.157
(p See Figure 57.)
Finance for low-carbon transport accounted for another 31% of
total mitigation finance, much of which was allocated to battery
electric vehicles and charging stations.158
The landscape of climate finance flows is multi-faceted,
interconnected and evolving. As of 2019/2020, public finance –
including funds provided by development finance institutions,
governments and climate funds – supplied around 51% of total
climate finance, at USD 321 billion, while private finance supplied
the remainder.159
Renewable energy attracted higher shares of
private finance than other sectors, with around 69% coming from
private sources in 2019/2020, reflecting the commercial viability
Source: Based on CPI. See endnote 157 for this chapter.
FIGURE 57.
Estimated Share of Mitigation Finance by Sector and Technology, 2019/2020
187

i Green banks function as banks only in terms of being financial intermediaries – they do not fall under traditional banking regulations and are typically set up
as a public financing authority that leverages limited public funds to attract additional private capital for renewable and other related technologies. See C40
Cities, “Establishing a City Green Bank, Best Practice Guide” (London: 2020), https://www.c40knowledgehub.org/s/article/Establishing-a-City-Green-Bank-
Best-Practice-Guide.
Annual investment (USD billion/yr)
Current (2021) annual
RE investment
0
1000
1800
400
200
800
600
1400
1200
1600
2019 2020 2030
2021
1,896
1,161
1,046
763
2000
BNEF Green Scenario
IEA NZE Scenario
IRENA 1.5C Scenario
BNEF Red Scenario
+418%
+217%
+186%
+109%
343
316
Increase relative to 2021 (%)
Annual investment requirements
366
and increasing competitiveness of renewable technologies.160
(p See Market and Industry chapter.) Commercial financial
institutions provided most of the private capital for renewables
(around USD 104 billion per year), followed by corporations and
households (such as for residential solar PV systems).
Public support came mostly from state-owned financial
institutions (USD 45 billion per year) – including green banksi
– followed by national development finance institutions
(USD 28 billion).161
(p See Snapshot: New Zealand.) Support for
renewables from state-owned financial institutions increased
sharply, while support from national development finance
institutions was down compared to 2017/2018.162
The Paris Agreement (Article 2.1c) highlights the need to
make finance flows consistent with the goal of limiting global
temperature rise to 1.5 degrees Celsius.163
Achieving this goal
would require significant growth in the overall investment
in renewables compared to the last decade, which totalled
around USD 300 billion
annually.164
Estimates of
the renewable energy
investment needed to
achieve the goals of the
Paris Agreement range
from USD 763 billion to
USD 1.8 trillion annually
to 2030, beginning in
2021.165
(p See Figure 58.)
In April 2021, the Glasgow
Financial Alliance for Net Zero (GFANZ) was launched to bring
together existing and new net zero finance initiatives.166
As part
of the GFANZ coalition, 450 financial firms in 45 countries,
responsible for combined assets exceeding USD 130 trillion, have
committed to mobilising private capital for emerging markets and
developing economies through private sector investments and
public-private collaboration.167
Note: These scenarios quantify renewable energy differently than the BloombergNEF historical basis used in this chapter. The BloombergNEF scenario
estimates here include only investment needed in wind power and solar PV, while the International Energy Agency and International Renewable Energy
Agency estimates include only investment needed in renewable power technologies.
Source: Based on BloombergNEF and CPI. See endnote 165 for this chapter.
FIGURE 58.
Range of Annual Renewable Energy Investment Needed in Climate Change Mitigation Scenarios Compared
Against Recent Investments
Investment needs to
increase between
2–5 times
to reach climate change
mitigation scenarios.
188

INVESTMENT
FLOWS
05
SIDEBAR 7. Oil and Gas Industry Investments in the Renewable Energy Transition
The oil and gas industry rebounded in 2021 as the global
economy began to recover from the COVID-19 pandemic.
At the same time, many individual and institutional
investors – including governments, financial institutions,
universities and others – stepped up their efforts to
divest from fossil fuels. By year’s end, the total assets
worldwide committed to fossil fuel divestment reached
USD 39.2 trillion, up from only USD 52 billion in 2014.
Investors of all kinds are pressuring oil and gas suppliers
to move out of high-carbon activities and to transition
their energy production to renewables.
As public opinion has shifted away from fossil fuels, oil and
gas conglomerates have attempted to rebrand themselves
simply as “energy companies”, although in most cases
they continue to pursue plans to extract and produce oil
and gas. This rebranding is especially visible in Europe,
where companies have made increasing renewable
energy commitments. Plenitude, a subsidiary of Eni (Italy),
aims to offer all of its retail customers renewable electricity
by 2030. TotalEnergies (France), which has diversified its
portfolio, achieved 500 gigawatt-hours of biomethane
production capacity in 2021 and is targeting 2 terawatt-
hours annually by 2025 through an agreement with
resource management group Veolia.
Oil and gas companies have used several strategies to
signal their transition to renewables, in an effort to maintain
investor support and diversify revenue streams. Most big
industry players have set intermediate targets for installed
renewable energy capacities by 2030, while at least two
companies have set longer-term targets: Royal Dutch Shell
(UK) aims to install 60 GW of renewable capacity by 2050,
and Eni aims to install 230-450 GW. In 2021, Repsol (Spain)
updated its target for renewable generation capacity to 60%
by 2030. Other producers have already successfully pivoted
to renewables, including Denmark’s Ørsted, which now ranks
among the largest developers of offshore wind energy.
Some companies have installed solar PV capacity to power
theiroilfieldoperationsandtoaddresstheirScope1i
emissions
(those resulting directly from company operations). However,
Scope 3 emissions make up the vast majority of emissions
from the industry; these include embedded emissions as well
as those released by the end-users of company products,
for example through activities like transport. In 2021, facing
pressure from shareholders, Chevron (US), ExxonMobil (US)
and TotalEnergies began disclosing potential estimates
of their Scope 3 emissions. TotalEnergies has taken a step
further and plans to reach carbon neutrality for its Scope 1, 2
and 3 emissions by 2050 or sooner, aiming for net zero across
its supply chain, energy purchases and end-use emissions.
i
Scope 1 corresponds to greenhouse gas emissions from owned or controlled sources (company operations, etc.). Scope 2 corresponds to indirect
emissions from the generation of energy (electricity, steam, heat or cooling) consumed by the company. Scope 3 corresponds to indirect emissions
along the value chain, including from company products.
189

Several companies have started to decrease their
production of oil and gas, including Shell, TotalEnergies and
BP (which plans to cut production 40% in the next decade).
However, most US companies have trended towards using
carbon offsets to meet their emission reduction goals,
rather than directly curbing hydrocarbon production or
shifting to renewables. To lower the carbon intensity of their
operations, Chevron and ExxonMobil (as well as Shell) have
incorporated strategies such as carbon capture and storage
and reductions in gas flaring (a leading source of methane
emissions). Chevron has pledged to reduce flaring 60%
by 2028. Occidental Petroleum is relying on enhanced oil
recovery as a pillar of its net zero goal for 2050; the company
is investing in solar projects and injecting captured carbon
to offset the additional oil extraction. Ultimately, the net
zero strategies of both Chevron and ExxonMobil have
strengthened the companies’ investments in oil and gas
production for the near future.
Some oil and gas majors have acquired existing renewable
energy companies or projects to diversify their portfolios.
In 2021, Chevron acquired Renewable Energy Group (REG)
for more than USD 3.1 billion, and BP purchased 9 GW
worth of solar projects for USD 220 million from renewable
developer 7X Energy. Among Shell’s recent acquisitions
are Inspire Energy and Savion LLC (utility-scale solar
and storage developers) and Sprng Energy (one of India’s
largest renewable companies), which it purchased for
USD 1.6 billion.
Eni has started using financial instruments to fund its
energy transition activities. In 2021, it issued a EUR 1 billion
(USD 1.1 billion) sustainability-linked bond that was
earmarked to achieve sustainability targets related to the
company’s Scope 2 and 3 emissions (production and
extraction segments) and installed renewable capacity.
State-run oil and gas companies, meanwhile, have unique
and integral links to their respective countries’ energy
security, economic stability and resource management.
Historically, these companies have relied on hydrocarbon
production to bring in government revenue; however,
several have begun shifting to renewables to help meet
national energy transition targets and to diversify away
from diminishing oil and gas resources. In 2021, Malaysia’s
Petronas and Colombia’s Ecopetrol were the first state-run
oil companies on their respective continents to announce
net zero targets. Petronas committed to dedicating 9% of
its capital expenditure to renewables through 2025 and
to quadruple its renewable energy capacity to 3 GW by
2024. Ecopetrol earmarked 7-8% over the next two years
to low-carbon energy and plans to install 400-450 MW of
renewables, mostly solar PV, by 2024.
SIDEBAR 7. Oil and Gas Industry Investments in the Renewable Energy Transition (continued)
190

Capital expenditure (billion USD)
Capital expenditure (billion USD)
0
25
15
20
5
10
Total capital
expenditure
Capital expenditure
on renewable energy
Capital expenditure
on renewable energy
and power
(including fossil-based
generation)
Capital expenditure
on low-carbon solutions
0 25
15 20
5 10
Total capital
expenditure
Capital expenditure
on renewable energy
and power
(including fossil-based
generation)
Capital expenditure
on low-carbon solutions
Total
Energies
Exxon
Mobil
Shell
BP
Chevron
Equinor
Eni
2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021
0.8
0.8 0.5
0.5 0.9
0.9
2.0
2.0
8.9
8.9
9.8
9.8
11.0
11.0
10.0
10.0 10.0
10.0
15.0
15.0
22.0
22.0
13.0
13.0
0.4
0.4 0.6
0.6
5.7
5.7 6.0
6.0
0.1
0.1 0.4
0.4
14.1
14.1
17.8
17.8
21.4
21.4
1.1
1.1 1.0
1.0
3.0
3.0
0.5
0.5 0.2
0.2
15.5
15.5
1.8
1.8
Total Energies
Exxon Mobil
Shell
BP
Chevron
Equinor
Eni
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
8.5
8.5
8.0
8.0
8.9
8.9
8.1
8.1
5.0
5.0
5.3
5.3
12.9
12.9
14.1
14.1
19.7
19.7
17.8
17.8
16.6
16.6
21.4
21.4
16.6
16.6
15.5
15.5
0.1
0.1
0.4
0.4
0.9
0.9
0.4
0.4
0.5
0.5
0.3
0.3
0.8
0.8
1.6
1.6
0.9
0.9
2.5
2.5
1.1
1.1
1.0
1.0
3.3
3.3
1.8
1.8
Oil and gas
spending on renewable
energy represents around
in renewables
in 2021.
3%
of global
investment
INVESTMENT
FLOWS
05
While several oil and gas companies experienced declines
in their total capital expenditures in 2021, Eni, Shell and
TotalEnergies reported increases. Company investments
in renewables and low-carbon solutions increased
sharply during the year (with the exception of Chevron
and ExxonMobil), although in most cases this investment
represented less than 15% of a company’s total capital
expenditure. (p See Figure 59.) Overall, oil and gas industry
spending on renewables worldwide represented only around
3% of the total global investment in renewable power and
fuels in 2021.
To push for greater accountability, investors have called for
executive compensation at companies such as Chevron
and Marathon (US) to be tied to environmental, social and
governance (ESG) metrics (but not directly to renewables).
However, at several major US oil and gas companies –
including Occidental, Phillips 66 and Valero – top executives
received increases in compensation for several years even as
the companies lagged in emission reductions compared to
industry averages. At Repsol, in contrast, capital discipline
drove the company to cut dividends 40% while aiming to
increase low-carbon investment to 30% by 2025.
Despite mounting pressure to shift to renewables, oil and gas
companies have sought to stymie policies aimed at slowing
fossil fuel production. In the United States, ExxonMobil
lobbied to oppose a 2021 federal budget bill that included
cuts to US emissions, even as the company simultaneously
announced a net zero target for 2050. BP pushed back on
European Union legislation aimed at lowering emission limits
by supporting the inclusion of natural gas in the EU Taxonomy,
and Eni criticised the Taxonomy’s emission threshold for
power plants as being too restrictive. In an open letter to the
European Commission, other European oil and gas suppliers,
such as Repsol and TotalEnergies, expressed support for
replacing coal with natural gas, rather than focusing on the
shift to renewables.
FIGURE 59.
Renewable Energy Spending as a Share of Total Capital Expenditure, Selected Oil and Gas Companies,
2020 and 2021
Note: Values cannot be compared to the previous year GSR, data has been updated based on companies annual report and available data.
191

Using Energy Storage to Optimise
Delivery of Renewables
The US state of Hawaii has experienced rapid uptake of renewables
in recent years, with some islands producing up to 300% of their
local electricity demand from solar and wind power. Traditionally
the most expensive state for electricity, Hawaii is benefiting from its
renewable energy abundance to drive policy change and reduce both
curtailment and fossil fuel use during peak hours. Hawaii was the
first state to set a 100% renewable portfolio standard (by 2045) and
reached 29.8% renewable generation in 2019.
The decommissioning of the largest fossil fuel plant on the island of
Oahu has prompted the state’s electric utility to work with customer-
owned energy advocates on a programme to pay households upfront
cash plus a monthly credit to install a battery alongside their rooftop
solar. Policies supporting feed-in tariffs have fluctuated in recent
years, but households are now paid to store excess solar production
throughout the day and to release it to the grid for two hours during
the evening at premium electricity rates.
Hawaii’s utility also introduced pilot programmes to provide bus
owners with no-cost charging infrastructure for electric buses and
special rates for daytime charging when renewables are producing
the most. Special time-of-use rates for EV charging also are available
for medium- to large-sized commercial customers on the islands
of Hawaii, Maui and Oahu, helping them save anywhere from
7% to 58% on electricity rates during these periods.
SNAPSHOT. USA, HAWAII
06

06
hroughout history, countries and regions have met
varying portions of their energy needs with renewable
energy sources. Renewables derived from the sun,
water and wind long provided the backbone of energy supply
to feed livestock used to transport goods, power sawmills, pump
water and grind grain.1
Until relatively recently, humans relied
almost exclusively on locally harvested biomass resources
(mainly firewood) to meet heating needs, and still today these
resources play a dominant role in the energy mix of many
countries, particularly in sub-Saharan Africa.2
In the late 19th and early 20th centuries, industries frequently
powered their operations using hydroelectricity generated
from nearby rivers and streams; even now, many regions of the
world continue to meet the bulk of their electricity needs with
hydropower.3
The dominance of renewables in human energy use
started to change, however, as fossil fuels in the form of coal, oil,
and gas were harvested in growing quantities, making renewable-
based energy systems the exception in much of the world.
More recently, many regions of the world have started to re-invent
renewable energy systems, propelled by improvements and
cost reductions in technologies such as wind power and solar
photovoltaics (PV), combined with the urgency to rapidly reduce
carbon emissions.4
While no examples exist of fully renewable-
based energy systems that span the electricity, heating, cooling,
and transport sectors, the foundations of such systems are
now being laid, including the technologies, infrastructure and
markets.5
(p See Sidebar 8.)
RENEWABLE-BASED
ENERGY SYSTEMS
06
T
KEY FACTS
 The foundations of fully renewable-based
energy systems are currently being laid,
spurred by advancements in wind and
solar power, storage technologies, sector
coupling and demand-side flexibility.
 Innovations in storage technologies,
supported by plummeting storage
costs, are making it possible to deploy
energy storage more widely, improving
reliability while helping to balance out the
fluctuations of variable renewables.
 Demand response and demand-side
flexibility are making it possible to shape
demand more rapidly and more easily than
in the past, providing stakeholders in the
energy system with a new set of tools to
balance supply and demand while helping
to sustain high shares of renewables over
longer periods.
193

i In this chapter, all references to hydrogen refer to renewable (or “green”)
hydrogen produced from renewable energy sources.
Due in part to declining renewable power costs, the share
of variable renewable energy (VRE) sources in the global
electricity mix has grown rapidly, exceeding 10% for the first
time in 2021.6
Some countries have seen far higher shares.
Variable renewables such as wind and solar power accounted
for more than 30% of electricity production in Denmark (53%),
Uruguay (35%), Spain (32%), Portugal (32%) and Ireland (31%)
in 2021.7
(p See Figure 60.) These countries and others achieved
even higher daily maximum levels of VRE penetration, with
generation exceeding 40% of consumer demand.8
Several factors are converging to make energy systems based
on renewable energy (particularly variable renewables) possible.
First, several different forms of energy storage are either already
mature (such as pumped storage) or becoming less expensive
and rapidly expanding (such as battery storage technologies).
Other emerging storage technologies include mechanical and
gravitational storage, chemical storage (including the production
of hydrogeni
or of synthetic fuels such as methanol) and thermal
storage, providing more options for better balancing the
fluctuations of VRE sources.
Second, industry and market players are starting to expand
sector coupling. This refers to greater integration between the
electricity, heating, cooling, and transport sectors, largely through
electrification and the production of renewable fuels. Sector
coupling is making it possible to meet energy needs that previously
were supplied by fossil fuels – such as heating and transport – with
supply from cleaner alternatives like renewable electricity, thereby
increasing the share of renewables in the energy mix.
Third, demand response is becoming an important accelerator
of energy system transformation across all sectors of energy use.
It is being facilitated by the rise of digital technologies, low-cost
data measurement and transmission, and a widening array of
smart appliances such as controllable thermostats and electric
heat pumps.9
Demand response – whether from households,
institutional buildings, businesses or industries – is making
energy demand more flexible, responding in real-time to system
constraints (including congestion, undersupply and oversupply)
as well as to price signals.
Finally, energy systems integration is being facilitated by the
expansion of transmission and distribution networks,
including transmission grids, district heating and cooling
networks, and pipelines to facilitate the transmission of green
gases such as ammonia and synthetic methane.10
It also is being
supported by ongoing improvements in forecasting.
As these changes gain momentum, the transition to a fully
renewable-based energy system is entering a dynamic new
phase. As in past years, progress towards renewables in 2021
occurred largely in the power sector, although the pace of change
in the heating and transport sectors has picked up as sector
coupling spreads. Advancements in the power sector also have
helped accelerate change in other sectors, fuelling growth in a
range of applications including the electrification of heating and
transport and the production of renewable fuels from electricity.
SIDEBAR 8.
Where Are 100%-plus Renewable Energy
Systems a Reality Today?
Certain regions of the world are demonstrating the
possibility of fully renewable-based power systems,
including systems that rely exclusively on variable
renewable energy sources such as solar and wind
power. Development has been concentrated largely in
the power sector, although efforts to increase the share
of renewables in transport, as well as in heating and
cooling, are gaining momentum.
Electricity
As of the end of 2021, six countries relied on 100%
renewable electricity: Costa Rica, Denmark, Norway,
Iceland, Paraguay (hydropower) and Uruguay. At the
sub-regional level, these were joined by four provinces/
states: South Australia (Australia), Hawaii (US),
Quebec (Canada) and Qinghai (China). Islands using
100% renewable-based power included Ta’u (American
Samoa), Eigg (Scotland), El Hierro (Spain), Graciosa
(Portugal) and King Island (Australia).
Heating and Cooling
Iceland’s heating needs are largely met with geothermal
energy distributed through the country’s several district
heating networks, or directly via renewably produced
electricity. The province of Quebec (Canada) meets the
bulk of its heating needs with electricity produced from
100% renewable energy sources (mostly hydropower).
Transport
Fully renewable-based transport is occurring on a
vehicle-by-vehicle basis as a growing number of
charging stations (whether based at home, at work, or
from service providers such as EVgo) are being supplied
by 100% renewable electricity. However, this is not yet
occurring in a widespread or systematic fashion. Some
transport systems are becoming largely electric and
increasingly renewable, led by local governments (e.g.,
in Waiheke, New Zealand). Biofuels, while renewable,
remain marginal, with most fuels limited to 5-10% shares.
194

RENEWABLE-BASED
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06
FIGURE 60.
Top Countries for Share of Variable Renewable Electricity Generation, and Maximum Daily Penetration, 2021
Examples of 100% (or near-100%) renewables in the power
sector are relatively widespread: during the second half of
2020 and early 2021, Costa Rica met its electricity demand for
an uninterrupted 300 days entirely with renewable electricity
sources, mainly hydropower (80-85%) and geothermal
(roughly 12%), with a small share of wind power.11
The
province of Quebec (Canada) supplies more than 100% of its
electricity needs with hydropower and a few large wind power
projects, exporting its surplus to neighbouring jurisdictions
in the United States and Canada.12
Paraguay supplements its
hydropowerbased electricity mix with a small contribution from
biomass, and Iceland meets virtually all its electricity needs with
a combination of hydropower and geothermal energy.13
In 2020,
Scotland met just under 100% of its gross electricity demand
almost exclusively from wind power.14
Shares exceeding 100% renewables have been achieved
elsewhere in the world, with a growing number of jurisdictions
now regularly generating surplus renewable electricity. Several
options are available to deal with this surplus: export it to
neighbouring regions; convert it to another form of energy (such
as thermal storage, battery storage or synthetic fuels); activate
residential, commercial or industrial demand to soak up the
surplus; or curtail it. In the US state of Hawaii, solar power has
exceeded daytime electricity demand on parts of the electric grid
since 2016, requiring the surplus power to flow to other areas of
the network; this trend that has led to tighter rules on customers
investing in solar PV and to surging investment in battery
storage.15
(p See Snapshot: Hawaii.)
The entire state of South Australia was powered by renewable
electricity for an uninterrupted 156 hours in the final weeks of 2021,
supplied primarily by wind
and rooftop solar power.16
(p See Figure 61 and
Snapshot: South Australia.)
To reduce curtailment
and make greater use of
its renewable electricity
supply, South Australia
is scaling up efforts to
encourage both demand
response and storage,
while the network
Note: Figure shows countries among the top 10 according to the best available data at the time of publication. Several smaller countries with low total
generation and/or high imports are excluded from this list.
Maximum penetration refers to the maximum daily share of production from variable renewable electricity divided by daily electrical load. Data for Chile and
Uruguay were not available.
100
80
60
40
20
0
C
h
i
l
e
A
u
s
t
r
a
l
i
a
U
n
i
t
e
d
K
i
n
g
d
o
m
G
r
e
e
c
e
G
e
r
m
a
n
y
I
r
e
l
a
n
d
P
o
r
t
u
g
a
l
S
p
a
i
n
U
r
u
g
u
a
y
D
e
n
m
a
r
k
Solar PV
Wind
Maximum daily
penetration of both
solar and wind
Share in percent
117%
117%
69%
69%
79%
79%
78%
78%
79%
79%
67%
67%
53%
53%
40%
40%
Three states or countries –
South Australia, Scotland
and Denmark – had met
more than 100%
of their total electricity
demand with wind and
solar as of April 2022.
195

Continuously
Continuously
Continuously
76 days
(2016) 299 days
25 days
116
hours
35
hours
68
hours
156
hours
Austria
Costa Rica
South Australia
El Hierro (Spain)
Before 2019 2019
18 days (2018)
Population served
2020 2021
Pumped
storage
Quebec
(Canada)
Paraguay
Norway
Uruguay
Iceland
Graciosa
(Portugal)
King Island
(Tasmania)
Ta‘u
(American Samoa)
Eigg
(Scotland)
Technology Year
2020
2012
since
2019
since
2019
since
Duration
Continuously
Continuously
on an annual basis
88%
million
8
million
7
million
5
366,000
4000
100%
days
128
hours
33
million
3.5
2015
˜2,000
2016
since
790
2008
since
87 Continuously
Continuously
Continuously
Continuously
76 days
(2016) 299 days
25 days
116
hours
35
hours
68
hours
156
hours
Austria
Costa Rica
South Australia
El Hierro (Spain)
Before 2019 2019
18 days (2018)
Population served
2020 2021
Pumped
storage
Quebec
(Canada)
Paraguay
Norway
Uruguay
Iceland
Graciosa
(Portugal)
King Island
(Tasmania)
Ta‘u
(American Samoa)
Eigg
(Scotland)
Technology Year
2020
2012
since
2019
since
2019
since
Duration
Continuously
Continuously
on an annual basis
88%
million
8
million
7
million
5
366,000
4000
100%
days
128
hours
33
million
3.5
2015
˜2,000
2016
since
790
2008
since
87 Continuously
FIGURE 61.
Longest Uninterrupted Stretch with 100%-plus Renewable Electricity, Selected Countries or Regions
196

RENEWABLE-BASED
ENERGY
SYSTEMS
06
operator is expanding its interconnections with neighbouring
states so that it can export more of its surplus electricity.17
In 2018,
Qinghai Province in China operated fully on renewable electricity
for nine days in a row (216 hours), due in part to the development
of a communication platform that monitors renewable energy
generation in real-time and co-ordinates it with data on power
consumption.18
Historically, high shares of renewables have been most common
in regions with abundant hydropower potential.19
However, the
rise of increasingly cost-effective energy storage combined
with greater demand-side flexibility and the expansion of grid
infrastructure is making it possible for regions with widely
differing resource endowments to transition to fully renewable-
based energy systems.20
SNAPSHOT. SOUTH AUSTRALIA
Solar Sponge Tariff
As renewables start supplying larger portions of the electricity
mix, cities and states are finding non-storage-based solutions
to meet the challenges of integrating variable renewable energy
sources such as wind and solar. In 2021, the state of South
Australia briefly set a record by producing 143% of its electricity
demand from local renewables. While battery storage absorbs
some of the excess generation, South Australia uses additional
strategies to distribute the surplus while also building more
wind and solar parks.
The record production lasted only a few minutes, but
throughout 2021 as a whole South Australia registered a
full 180 days during which solar and wind power generation
exceeded the state’s electricity demand. Investments in
transmission lines have allowed South Australia to reduce
curtailment of excess renewable electricity by exporting this
power to neighbouring Victoria. Newly installed synchronous
condensersi
also have helped counteract the swings of variable
renewable energy moving through the grid, reducing the state’s
reliance on natural gas as a stabiliser during high renewables
generation.
A time-of-use tariff, known regionally as the “solar sponge”
tariff, incentivises energy use during daytime hours. The cost
of distributing electricity falls 25% during times when solar
is most abundant (10 a.m. to 3 p.m.) and rises 125% during
peak hours (6 a.m. to 10 a.m. and 3 p.m. to 1 a.m.). The state
offers subsidies for residential battery storage, and there are
plans to build higher-capacity batteries to further support
local renewable generation – among the many options for
addressing the variable nature of renewables.
i
Synchronous condensers are used for several reasons, including
managing minor fluctuations of variable renewable energy by absorbing
and producing reactive power. They provide system strength and
inertia usually supplied by conventional energy sources such as natural
gas. The use of synchronous condensers had declined due to new
technologies but has since resurged due to their compatibility with
intermittency and variable energy sources such as wind and solar.
197

i The terminology used to categorise energy storage by duration or discharge period varies widely. The GSR considers “short-duration” storage to be energy storage
for less than around 10 hours, and “long-duration” refers to periods of around 10 to 100 hours. “Long-term” or “seasonal” storage describes energy storage for
periods in excess of 100 hours, typically for weeks, months and years. Pumped storage is a mature and widely commercialised form of long-term storage.
ii Ancillary services (e.g., frequency control and voltage control) provide valuable support to the grid through operational adjustments that help maintain a conti-
nuous flow of electricity to consumers.
ENERGY STORAGE
Energy storage systems are being deployed at a range of
scales around the world. These systems can store electric or
thermal energy to enable reliable, around-the-clock energy
supply. Forms of energy storage (and key technologies) include
mechanical (pumped storage, flywheels), electro-chemical
(batteries, including lithium-ion and lead-acid), chemical
(hydrogen) and thermal (molten salt storage, hot water tanks).
Energy storage infrastructure can help stabilise the grid across
time scales from minutes to days, providing a range of benefits
to the energy system while supporting decarbonisation.
Storage solutions can be distinguished between distributed
solutions (typically sited directly at a customer’s premises) and
centralised or grid-scale solutions. Another sub-sector that
grew in prominence in 2021 is long-durationi
energy storage,
supported by the launch at the November climate talks of the
Long Duration Energy Storage Council.21
These technologies
aim to bridge longer-term variations in energy supply,
particularly seasonal fluctuations.22
Pumped storage remained the largest source of energy
storage during 2021, with more than 160 GW installed.23
This
mature technology represents more than 90% of the global
stationary storage capacity, including 93% of the capacity in
the United States at the end of 2020, and an estimated 97%
of the total capacity installed in the European Union (EU).24
Pumped storage capacity is heavily concentrated, with more
than 80% of the capacity in 2021 installed in just four markets:
China (36 GW), Japan (27.6 GW), the United States (21.9 GW)
and the EU (52.2 GW).25
Despite its stronghold on the market, pumped storage growth
has been slow, increasing less than 7% between 2012 and
2021.26
New developments in 2021 included a major project
starting commercial operation in China, projects entering
construction in the United States, and the first pumped hydro
storage to reach financial close in Australia in more than
40 years.27
As jurisdictions around the world look beyond
pumped storage, other types of energy storage projects have
picked up steam, based on technologies such as lithium-ion
batteries, flow-batteries, gravitational storage, thermal energy
storage, compressed air storage and power-to-fuels.28
Battery storage technologies have grown rapidly from less than
1 GW globally in 2012 to more than 17 GW by the end of 2020,
and the United States alone installed a further 4.2 GW in 2021.29
Rapid cost declines have helped propel the market, making
battery storage competitive for a growing number of end-use
applications.30
Battery storage costs fell roughly 90% within a
decade, from more than USD 1,200 per kilowatt-hour (kWh) in
2010 to around USD 130 per kWh near the end of 2021.31
By
year’s end, the global stationary battery storage market was
valued at USD 31.2 billion.32
The wide use of batteries in mobile devices and electric vehicles
has contributed to the spread of battery technologies and made
it possible to deploy them cost effectively to meet a range of
power system needs. Battery storage systems operating around
the world now provide ancillaryii
services including frequency
response and voltage support to power systems, gradually
replacing many of the services traditionally provided by large
conventional generation plants.33
A procurement process
launched by Scotland’s national grid operator resulted in
5 battery storage contracts for the supply of ancillary services
to help increase grid stability.34
In May 2022, a 25 megawatt
(MW)/25 megawatthour (MWh) battery storage project in
south-eastern France entered into commercial operation,
following a larger 61 MW/61 MWh project in northern France in
December 2021.35
Hydrogen and synthetic fuels such as methanol, as well as
ammonia, have gained momentum in the more than two dozen
countries worldwide that have adopted hydrogen strategies.36
If
produced with renewable electricity, these power-to-fuels (or
power-to-X) projects can provide another means to increase the
share of renewables used in hard-to-decarbonise sectors such
as steel production. More than 300 hydrogen projects have
been deployed in Europe to improve the system integration of
renewables and support decarbonisation, and at least 100 more
are under way in Asia, Australia and the Americas.37
The largest renewable hydrogen project (using a 150 MW
alkaline electrolyser) entered commercial operation in China in
early 2022, powered by a 200 MW solar PV plant.38
A 20 MW
project (producing hydrogen via electrolysis powered by
hydroelectricity) came online in 2021 in Canada, along with a
198

RENEWABLE-BASED
ENERGY
SYSTEMS
06
50 MW solar-powered project in the Netherlands.39
In Germany,
grid operator Amprion is partnering with Open Grid Europe to
develop a large hydrogen-based power-to-gas project, which
involves building a 100 MW electrolyser and reconfiguring the
natural gas grid to transport hydrogen.40
Stationary hydrogen
storage tanks are being built at the facility, increasing the total
volume of hydrogen that can be produced while also increasing
the volume of renewable energy that can be processed.41
Elsewhere in Europe, the island of Utsira (Norway) has expanded
its renewable energy plans beyond wind and hydrogen to
include a battery storage unit, a smart power management and
control system, and the electrification of vessels that travel to
and from the island; these investments are making it possible
to transition the energy supply used by ships in the area to
renewables.42
During 2021, a hybrid project in Oxford (UK)
using lithium-ion and flow batteries was connected to the grid,
bringing 50 MW (100 MWh) of new battery storage online, and
in California (US) a tender for long-duration energy storage was
awarded to a project using a 69 MW (552 MWh) lithium-ion
battery.43
The world’s largest flow battery started construction
in China in September 2021, a 100 MW (500 MWh) project
that will be used to help meet peak loads and to bridge dips in
renewable energy output.44
Compressed air energy storage facilities that make use of
underground caverns have been connected to the grid in recent
years in Hebei Province (China) and Ontario (Canada), and
several projects in California were in various stages of planning
and development.45
Among the California initiatives under
construction is a 500 MW (5 GWh) project by Hydrostor that
relies on purpose-built caverns, enabling the facilities to be sited
in a wider range of locations.46
Thermal energy storage technologies are widely used to store
heat energy in hot water tanks, molten salts, open pit storages,
borehole storages and other mechanisms. Europe’s more than
10 million solar thermal systems total an estimated 187 GW of
thermal energy storage capacity, while China’s solar thermal
storage capacity is estimated to be even larger.47
Thermal energy
storage frequently is used in conjunction with (solar) district
heating systems, storing the surplus energy in hot water tanks
or pits.48
Among the emerging thermal energy storage technologies
is Sunamp’s recently launched “heat battery” for residential
applications, which makes use of phase change materials
that can absorb and release thermal energy more efficiently
than other forms of thermal storage such as water.49
Such
technologies are improving the integration of VRE by consuming
electricity during times of oversupply, while also helping save
customers money by “charging” when the cost of electricity is
lower.50
The use of molten salt storage, notably at concentrating solar
thermal power (CSP) plants, has also expanded. Projects include
a 110 MW facility in Chile that entered commercial operation
in March 2022 and has 17.5 hours of thermal energy storage,
enabling constant renewable electricity supply.51
Battery storage
costs have
fallen 90%
since 2010.
199

SECTOR COUPLING
Sector coupling refers to the integration of energy supply and
demand across electricity, heat, and transport applications,
which may occur through co-production, combined use,
conversion and substitution.52
Sector coupling has taken hold
in the two main end-use sectors – heating and transport – in
two primary ways:

linking the power and heating/cooling sectors by using
electricity to meet thermal needs such as through electric heat
pumps or other forms of electric heating; and

linking the power and transport sectors through the
electrification of mobility, including two- and three-wheeled
vehicles, cars, trucks, delivery vehicles, buses, trains, trams and
even aviation.53
By providing pathways for renewable electricity to supply energy in
heating and transport, sector coupling is facilitating higher shares
of renewables.54
A growing array of digital technologies are making
it possible to activate and de-activate individual appliances and
to control electric vehicle charging patterns, among other digital
controllable loads.55
Smart technologies also are being used to
control hot water tanks and other household appliances such as
air conditioners and thermal energy storage systems, enabling
power demand to be controlled more flexibly and dynamically.56
Such developments are enabling previously separate end-use
sectors to become increasingly interconnected, accelerating the
pace of energy system transformation and unlocking important
co-benefits including emission reductions, lower energy prices,
improved resilience and greater energy security.57
Heating (and cooling) represents roughly 50% of global final
energy consumption. (p See Global Overview chapter.) Although
cooling needs already are met mostly with electricity, heating
needs continue to rely largely on the direct use of fossil fuels.
Transitioning the heating sector to renewables can be done in a
variety of ways, including through biomass direct-use or biogas
installations, through the use of geothermal and solar heat, and
through the efficient use of electric heat in end-use appliances.
Heat pumps have emerged as a key technology in this regard,
as each unit of electricity used to operate the heat pump can
generate the equivalent of 3 to 5 units of thermal energy for space
or water heating.58
(p See Heat Pumps section in Market and
Industry chapter.)
Digital technologies are making it easier to integrate electric heat
into homes and businesses in a flexible, system-responsive way.
In the United Kingdom, the company Mixergy has started to roll
out adaptive water heaters that are Internet-linked and able to
draw on different sources of renewable heat, including renewable
electricity, on-site solar hot water and heat pumps.59
“Smart technologies” allow users to optimise their own on-site
consumption of self-produced electricity (such as from rooftop
solar PV) to supply appliances in real-time, before the energy
generated on-site gets exported to the grid. Such on-site
optimisation is becoming attractive in regions where electricity
prices are higher than the cost of on-site production, such as
Germany, California and Australia.60
Using the renewable power
directly on-site reduces losses while enabling customers to shift
the electricity that they demand from the grid to periods when
prices are lower.61
In countries and regions with relatively high electricity prices
– such as Australia, Germany and parts of the United States
– a growing number of companies are offering optimised self-
consumption linked to smart meters and appliances as part of
their solar installations.62
New software-as-a-service (SaaS)
companies in the country are enabling electricity customers to
tap into low electricity prices, providing them with software that
automatically activates on-site loads in response to low prices to
provide cheaper electric vehicle charging and more cost-effective
heating and cooling.63
In early 2022, German network operator TenneT and heat pump
manufacturer Viessmann launched a pilot project to link heat
pump use to the availability of wind and solar power, using
controllable thermostats and on-site thermal storage tanks to
help minimise VRE curtailment.64
Through the project, heat
pump owners receive a lower electricity tariff in exchange for
enabling the local distribution network operator to remotely
control operation of the units.65
Sector coupling is
helping achieve
higher shares
of renewables.
200

i An individual, household or small business that not only consumes energy but also produces it. Prosumers may play an active role in energy storage and
demand-side management.
RENEWABLE-BASED
ENERGY
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06
The spread of district heating and cooling networks is enabling
the wider use of renewable heating and cooling. Ninety percent
of households in Iceland use geothermal heat, mostly piped
through district networks, and hundreds of conventional district
heating networks exist throughout Europe, the United States, the
Republic of Korea and China.66
To transition these networks to
renewables, some operators are incorporating biomass energy
and solar hot water, while increasing the use of renewables in
combined heat and power (CHP) plants.67
The district heating
network in Copenhagen (Denmark) is rapidly phasing down
coal and using surplus electricity to provide heat directly to the
network via electric boilers and heat pumps.68
Some operators
have opened their networks to prosumersi
, enabling different
thermal energy sources at various temperatures to contribute to
meeting heating needs.69
The district heating system being built in Hamburg (Germany)
as of 2021 will use surplus wind power (both onshore and
offshore) to generate heat for households and businesses.70
The heat will be fed into the local district heating network and
help better integrate wind power when it is abundant. The
project has established a “heating marketplace” that allows
the real-time trading of heat among different heat providers on
the network (including individual households).71
Power-to-heat
systems based on the use of surplus electricity that otherwise
would be curtailed were operating in Berlin (Germany) and
under construction in Neubrandenburg, Parchim, Rostock and
Stralsund.72
In an innovative example of sector coupling, a renewable-based
power-to-gas installation in Lingen (Germany) aims to recycle
the waste heat from the electrolysis facility by injecting it into
the local district heating network.73
In Herning (Denmark),
surplus heat from the production of green hydrogen is being
used to serve a local district heating network.74
Energy use for transport accounts for around 32% of final
energy demand, virtually all of which is met by fossil fuels. (p See
Global Overview chapter.) However, the rise of electric vehicles
has made it possible for growing numbers of users to meet their
transport needs with renewably generated electricity.75
As with
heat pumps in the heating sector, electric vehicles are emerging
as a key enabling technology in the transition to a renewable-
based transport system. (p See Sidebar 4 in Global Overview
chapter.)
New digital technologies are enabling greater interactivity with
end-use appliances, particularly larger loads such as electric
vehicle chargers, pool pumps, air conditioners, thermostats
and heat pumps.76
Austin Energy in Texas (US) offers a higher
upfront subsidy for customers that install residential electric
vehicle charging stations that are Wi-Fi-equipped to enable
greater interactivity and communication with the grid.77
In 2020,
California updated its inverter standards to enable greater
interactivity between distributed energy resources (such as solar
PV and energy storage systems) and the grid.78
Shenzhen (China)
is using its growing electric vehicle and e-bus fleets as a flexible
energy resource to help stabilise and improve the efficiency of the
power system, co-ordinating the vehicles’ charging patterns by
relying on signals sent from power suppliers.79
Some jurisdictions are mandating that electric vehicles be
charged strictly with renewables. The private charging station
operator EVgo now offers 100% renewable electricity at its
charging stations across the United States, including for
operators of fleet vehicles, and all public charging stations
in Austin (Texas) are powered by 100% renewable electricity
through the utility’s green power programme.80
In Germany,
upfront subsidies for home-based electric vehicle charging
stations are contingent on customers’ enrolment in a 100%
renewable energy option, similar to rules adopted in Austria.81
Several island regions have moved to fully electrify their
transport systems. The island of Waiheke off the coast of
New Zealand has begun to transition its passenger vehicle
fleet, as well as buses and waste collection vehicles, to run on
electricity.82
In 2021, Greece announced plans to transition its
islands to renewably powered electric transport, with islands
such as Astypalea and Chalki being equipped with solar
power and on-site battery storage to supply a growing fleet of
electric vehicles.83
Similar plans were launched in Barbados, the
Madeira islands (Portugal) and New Caledonia (France).84
201

Jurisdiction Available demand response capacity (estimated)
United States (nationwide) 31 GW, with roughly half from residential programmes (end-2019)
Japan 5.8 GW (end-2020)
China More than 4 GW (end-2020)
Italy 4 GW (end-2020)
United Kingdom More than 1.5 MW (end-2020)
France 1.5 GW (end-2020)
Hydro Quebec (Canada) 157 MW (first quarter 2022)
National Energy Market (Australia) 40 MW (end-2021)
DEMAND RESPONSE
A central part of adapting the energy system to the integration
of renewables is making energy demand more flexible –
particularly energy demand for electricity, heating and cooling,
and transport. With the transition to renewables, the power
system is evolving from one in which grid operators forecast
demand and schedule supply, to one in which supply is forecast
and demand is scheduled to match.85
Demand response can entail decreasing flexible loads (such
as heat pumps, electric vehicles, water heaters, or commercial
and industrial loads such as refrigeration) during times of low
renewable energy supply, and increasing them during times
when supply is abundant and prices are low.86
Although it has
been used for decades (mainly in collaboration with industrial
electricity customers), demand response increasingly is a
central component of many strategies to achieve high shares of
variable renewables. While current capacity is limited to only a
few countries and regions today, the demand response market is
growing rapidly.87
(p See Table 7.)
As the share of variable renewables in power systems increases,
more utilities are experiencing periods in which supply exceeds
demand at certain times of the year, whether due to high rainfall
(in the case of hydropower) or to days with abundant wind or
sunshine.88
While heavy rains typically can be stored (to some
degree) in a dam’s reservoir, surplus wind and solar power must
be either curtailed, exported to neighbouring regions or stored.
Due to the weather-dependent nature of many renewable
energy technologies, such periods of surplus are occurring more
frequently.89
(p See Figure 61.)
The recurrence of grid surpluses is accelerating efforts to make
power demand more flexible. Several transmission system
operators in Europe recently joined forces to establish a
blockchaini
-based data platform, the Equigy Crowd Balancing
Platform, to enable millions of households to participate in
providing flexibility to the system, by increasing or decreasing
either their electricity production or energy demand in
response to system needs.90
A similar project to increase
flexibility from demandside resources from households was
launched in Switzerland.91
(p See Sidebar 8.)
An expanding web of digital appliances and sensors is linking
previously non-networked appliances such as water heaters,
dryers, refrigerators, and thermostats, enabling these units to
respond automatically to price signals. Such appliances can
be activated when solar or wind generation in the network
is high, and turned off when solar or wind output declines.
Connecting such appliances is enabling electricity demand to
be shaped in various ways based on system needs.92
(p See
Figure 62.)
In 2021, Europe was home to an estimated 14.9 million heat
pumps and more than 4 million electric vehicles, creating
the potential for a deep pool of demand-side flexibility in the
system.93
Efforts to increase system flexibility also were under
way in Thailand, with the national electric utility developing
smarter energy management systems to tap into demand-side
flexibility.94
In 2018, the island of Tilos (Greece), which uses
demand response technologies combined with wind, solar,
and battery storage technologies, was approaching the ability
to meet nearly all of its electricity needs with renewables.95
TABLE 7.
Estimated Demand Response Capacity in Selected Jurisdictions in Recent Years
202

Electricity demand and
solar power output (one day)
Activation of demand-side flexibility
3:00 6:00 9:00 12:00 15:00 18:00 21:00
TV
24:00
Typical electricity demand
of a household in one day
Typical solar power output
Suggestions:
- Charge electric vehicles
- Use heat pumps, air
conditioning and smart
appliances
Flexible
energy demand
allows for the
use of more
renewables.
0:00
0:00
3:00 6:00 9:00 12:00 15:00 18:00 21:00 24:00
Shaping electricity
demand by
- incentives
- investment
- behaviour change
RENEWABLE-BASED
ENERGY
SYSTEMS
06
Under new grid management rules rolled out in Germany in late
2021 and early 2022, smaller sources of both supply and demand
are now allowed to participate in providing balancing services.96
The threshold for participation was reduced from 10 MW to
100 kW, making it possible for small groupings of demand-side
appliances such as heat pumps to take part.97
In the United
States, new rules adopted in 2020 enable distributed energy
resources (both supply and demand sources) to be aggregated
together and to participate directly in the country’s bulk electricity
markets; during 2021 and 2022, system operators across the
country submitted strategies detailing how they plan to comply.98
A programme in California successfully signed up more than
450,000 electricity customers (including 115,000 active users)
to provide demand response to the network, using low-cost
data collection and smart appliances to enable residential
customers to play a greater role in providing flexibility.99
By
responding to real-time signals rapidly and effectively, operators
were able to alleviate pressures on the grid while improving
reliability.100
In 2021, German grid operator 50 Hertz made use
of small-scale loads such as heat pumps and electric vehicles to
support system balancing, enabling the loads to be aggregated
to respond in real time to congestion and price signals on the
wholesale power market.101
Source: Based on RMI. See endnote 92 for this chapter.
FIGURE 62.
Illustration of Demand-side Flexibility at the Household Level
203

i Without such prohibitions, distribution system operators could use the
revenues derived from network tariffs to crosssubsidise such infrastructure,
arguably providing them an unfair competitive advantage, in contravention of
the EU’s Internal Electricity Market Directive. See endnote 106 in this chapter.
ii A virtual power plant is a network of decentralised, independently owned
and operated power generating units combined with flexible demand units
and possibly also with storage facilities. A central control station monitors
operation, forecasts demand and supply, and dispatches the networked
units as if they were a single power plant.
VPP Operator Total networked capacity
Statkraft 14,000 MW
NextKraftwerke 9,800 MW
Enel 7,400 MW
OhmConnect 550 MW
AGL More than 200 MW
While demand response typically is voluntary, some utilities and
regions have introduced standards and regulations to expand
participation, in some cases requiring new appliances to be
demand response-enabled. In 2021, Australia was in the final
stages of implementing a nationwide demand response standard
covering appliances including solar PV systems, air conditioners,
pool pumps, electric hot water storage heaters, battery storage
systems and electric vehicle storage infrastructure.102
Upon its
entry into force (in 2023 for water heaters and 2024-2026 for
other appliances), the standard requires that a set of household
appliances be able to respond to remote communications to either
increase or decrease the electricity they draw from the network.103
In the EU, the rules governing the participation of demand-side
flexibility improved in several Member States in 2021, although
significant differences within the region remain.104
Slovenia
joined France in allowing demand-side flexibility resources
to be aggregated across all components of the electricity
market (day-ahead, intra-day and balancing markets), and
Finland, Italy and Romania have set clear rules for the market-
based procurement of ancillary services.105
To ensure a level
playing field, Finland, France, Italy and Slovenia adopted rules
prohibitingi
distribution system operators from owning and
managing electric vehicle charging infrastructure as well as
energy storage infrastructure.106
Related developments have emerged to facilitate the growth
of aggregators, sometimes called virtual power plantsii
(VPPs). As VPPs have spread in recent years, they have moved
beyond simply incorporating supply sources such as wind,
solar, hydropower, and biogas facilities, to also control demand
sources such as heat pumps, electric vehicles, battery systems,
pumps and air conditioners.
As of early 2022, more than 30 GW of renewable energy capacity
was connected within VPPs around the world, up from less than
100 MW in 2012.107
(p See Table 8.)
Real-time price signals (including time-of-use electricity tariffs)
are useful to help balance supply and demand and maintain
reliability.108
Developments in energy pricing combined with
smarter metering and inverter technologies are starting to make
it possible to ease supply constraints and mitigate demand spikes
dynamically.109
This can be done either through behavioural
change, or through changes in the pre-programmed settings
used to operate solar home systems, thermostats, vehicle
charging and appliances. Introducing variable electricity pricing
can help discourage consumption during hours of peak demand
while encouraging it when the VRE supply is abundant.110
With the electrification of transport, there is a greater need to
ensure near-real-time interactivity between vehicle charging and
the grid.111
Because periods of low prices tend to correlate with
periods of high renewable electricity output, charging station
operators increasingly are offering customers time-varying
rates to encourage charging during periods when supply is
abundant.112
Such “smart charging” approaches help increase
the amount of renewable electricity that can be integrated into
the grid, providing cost savings to customers while reducing
curtailment.113
TABLE 8.
Networked Capacity of Selected VPP Operators Worldwide, as of Early 2022
Virtual Power Plants
grew to
over 30GW
in 2021, up from less than
100 MW in 2012.
204

i A similar effect is observed in electricity demand, with power demand exhibiting less short-term variability when considered over progressively larger
geographic areas.
RENEWABLE-BASED
ENERGY
SYSTEMS
06
In Hawaii, the utility HECO offers lower rates for electric bus
operators that charge their fleets during the daytime, when
renewable energy is abundant, as well as overnight when power
demand is lower.114
For residential and commercial customers,
special electric vehicle (EV) charging rates are being rolled out
across Oahu, Maui and Hawaii’s main island that are between 7%
and 58% cheaper than the current rates.115
A similar approach in
the United Kingdom relies on time-of-use rates that encourage
drivers to charge their electric vehicles during low-demand
periods, while offering them payments to feed power back into
the network when supplies are tight and prices are high.116
The
UK’s national standards for such “vehicle-to-grid” policies are
scheduled to come into force in April 2023.117
Such dynamic pricing also is being deployed in the power and
heating and cooling sectors. In 2021, Duke Power in South Carolina
(US) issued a revamped net metering policy that incentivises
customers to switch to controllable thermostats and includes time-
of-use rates of up to USD 0.35 cents per kWh for any solar power
that customers feed to the grid during peak times.118
A similar policy
in Hawaii offers near-zero compensation (i.e., a near-zero reduction
to their electricity bill) for owners of PV systems who export their
surplus to the network during the daytime (with premium pricing
for exports during the peak evening hours of 5 p.m. to 8 p.m.),
combined with an upfront cash bonus for customers that install
battery storage systems.119
In Spain, a dynamic time-of-use tariff
for customer-sited solar PV projects was introduced to encourage
greater responsiveness by prosumers to price signals.120
In July 2021, South Australia Power Networks started implementing
“solar sponge” tariffs designed to encourage electricity customers
to shift more of their demand to during the daytime when solar
power is abundant.121
In the UK, utility company Octopus Energy
began offering “plunge tariffs” that adjust on a half-hourly basis
depending on wholesale market prices, enabling customers to
benefit from times of high renewable energy supply and low (or
negative) wholesale market prices.122
The Australian company
Fronius helps customers that have on-site solar PV systems
optimise their self-consumption, linking their solar output to a
smart energy management system to improve the economics of
the system, enable faster payback and reduce power bills.123
ENERGY INFRASTRUCTURE
A further factor enabling the transition to renewable-based
energy systems is the push to build and strengthen the
interconnectedness of different regions across larger
geographic areas, through either transmission grids or
renewable gas networks. Interconnections enable regions with
renewable electricity generating capacity (or synthetic gas or
green hydrogen production) to export energy to other regions
when supply is abundant. Denmark regularly exports surplus
wind power to Germany and other European countries while
importing large volumes of electricity, mainly hydropower from
Norway and Sweden.124
Scotland often sends its surplus wind
power southward.125
Interconnections enable regions to develop
and integrate higher shares of renewables than would otherwise
be possible.
Building out power grids also enables the variability of wind and
solar output to be balanced out over larger geographic areas,
with cloud cover or dips in wind speeds in one region being
offset by fluctuations in output elsewhere on the networki
. Such
smoothing effects make it easier to maintain system reliability,
while helping to reduce forecasting errors.126
Benefits of accurate forecasting include better planning of
reserve capacity, more efficient dispatching of generation
assets (both renewable and conventional) and smarter
scheduling of maintenance.127
Better forecasting techniques
allow for more accurate predictions of the output of weather-
dependent renewables. In windy Denmark and Scotland,
artificial intelligence and deep learning are helping to more
accurately predict both future wind power output and future
electricity prices, improving the operation and profitability of
wind farms.128
205

Decarbonising Transport and Boosting Renewables
In 2021, the City of Belgrade announced its climate action plan, earmarking
EUR 5.2 billion (USD 5.8 billion) through 2030 to reduce greenhouse gas emissions
in an effort to combat climate change and improve local air quality. This strategy
is part of efforts to reduce growing climate risks, such as extreme heat, heavy
precipitation and drought.
The Green City Action Plan, focusing on broader environmental benefits, lays out
interdisciplinary approaches for a more sustainable Belgrade. To improve air and
water quality, the city plans to extend its train and tram lines, bringing estimated
savings of 684,861 tonnes of CO2 annually. Most of the remaining EUR 1.2 billion
(USD 1.3 billion) budget for transport will go towards electrifying 20% of private
vehicles, 40% of buses, and 80% of taxis and commercial vehicles, in addition
to switching all city-owned vehicles to electric by 2030. To reduce the city’s car
dependence, Belgrade plans to expand bike lanes and walkways while minimising
sprawl.
The plan gives considerable attention to renewables and energy efficiency. Around
EUR 3 billion (USD 3.4 billion) of the overall blueprint goes to retrofitting buildings,
improving heating networks and integrating renewables into the natural gas
distribution network, among others. To wean the city off natural gas and petroleum,
Belgrade plans to advance local renewable generation. Several sites have been
identified to install a total of 111 MW of wind energy, in addition to a waste incinerator
producing 30.2 MW of electricity and 56.5 MW of heat, and a landfill gas plant
generating 3.1 MW of electricity and 1.8 MW of heat. Public-private partnership models
will finance most of the projects, with private investments expected to comprise
36% of the total.
SNAPSHOT. BELGRADE, SERBIA
07

i Net zero emissions can be achieved, for example, by using natural
sinks, such as reforesting land or adopting agricultural best practices, or
through a technological solution, such as carbon capture and storage.
Net zero targets also are referred to as “climate neutral”, “carbon neutral”
or “zero emission” targets, although technically these differ. Carbon
neutrality refers to net zero emissions of only carbon dioxide (CO2),
whereas climate neutrality indicates a broader focus on all greenhouse
gases. There is no agreed definition, and implementation of these targets
also varies broadly. See glossary.
07
n 2021, climate and energy action in cities was
shaped by tumultuous global events. COVID-19
restrictions remained in place throughout the year,
keeping most cities (as well as countries) focused on rebuilding
the economy and protecting public health. At the same time,
concerns about rising energy prices and their effects on city
budgets and municipal utilities elevated the importance of
a stable and affordable energy supply on the policy agenda.1
Driven by these trends – as well as by growing climate concern,
rising air pollution and public pressure – cities increased their
commitments towards net zero emissionsi
and renewable
energy action, particularly in advance of the November 2021
UN climate talks in Glasgow (Scotland).2
City governments used a broad range of targets, policies and
actions to show local commitment to renewables. By the end
of 2021, around 1,500 cities had renewable energy targets and/
or policies, up from around 1,300 the previous year.3
This meant
that, collectively, more than 1.3 billion people – around 30% of the
urban population – were living in a city with a renewable energy
target and/or policy (up from 25% in 2020).4
(p See Figure 63.)
City governments also have taken action that indirectly supports
the shift to renewables, such as setting net zero targets and
targets for electrifying heating, cooling and transport.5
 By the end of 2021, around 1,500 cities had
renewable energy targets and/or policies,
collectively covering more than
1.3 billion people.
 Over 1,100 city governments have
announced net zero targets. Yet, exact
measures are still under discussion or no status
information on targets is available, highlighting
the importance of master plans, including the
deployment of renewables.
 Regulatory mechanisms such as building
codes typically apply only to new buildings,
although some cities also require this during
retrofits and renovations. For existing buildings,
financial and fiscal incentives such as grants,
rebates and tax credits often are used to
encourage renewables.
 By the end of 2021, 270 cities had
established low-emission zones and
20 had passed bans and restrictions on
certain (fossil) fuels or vehicle types.
KEY FACTS
I
RENEWABLES
IN CITIES
07
207

71-80%
61-70%
51-60%
41-50%
31-40%
21-30%
11-20%
1-10%
81-90%
91-100%
No data
30%
of urban population
live in a city
with a renewable
energy target
and/or policy.
Such local action has been key in supporting both national
decarbonisation efforts and efforts to achieve global goals such as
the Paris Agreement. Cities are home to around 55% of the world’s
population, and energy use in cities accounts for three-quarters
of global final energy use (and a similar share of energy-related
CO2 emissions).6
Energy demand in cities continues to grow,
particularly in Africa and Asia, due mainly to urban population
growth (including urbanisation) and economic development.7
As city governments move towards electrifying transport as well
as heating and cooling in buildings, electricity demand also is
expected to grow.8
Municipal buildings and transport account
for only a small share of
urban energy demand
– the bulk of the energy
consumed city-wide is
used in residential and
commercial buildings,
and for private transport.9
City governments have
played a role in expanding
sustainable energy access
and reducing energy
poverty for inhabitants. Around 1 billion urban and peri-urban
dwellers live in rapidly growing slums and informal settlements,
often located on the periphery of cities.10
Many inhabitants
continue to lack access to energy and to other urban services
and infrastructure. City action on sustainable and reliable energy
access has been key to improving living conditions for the urban
poor and to efforts to achieve Sustainable Development Goal 7
(on sustainable energy for all) and interlinked goals.11
Note: Calculations based on population in cities with renewable energy targets and/or policies and their share of the national population. Excludes cities with
energy efficiency, electric vehicle and/or net zero targets. Data not available for some countries. See Reference Table R3 in GSR2022 Data Pack.
FIGURE 63.
Share of Urban Population with a Renewable Energy Target and/or Policy, 2021
Energy use in
cities accounts for
three-
quarters
of global final
energy use.
208

i For a detailed discussion of drivers, see REN21’s Renewables in Cities 2019 Global Status Report, available at www.ren21.net/cities.
RENEWABLES
IN
CITIES
07
To support vulnerable communities, the Race to Resilience
campaign was launched in mid-2021 to boost the resilience of
some 4 billion people by 2030, with a focus on transforming urban
slums into healthy, clean and safe environments.12
Renewables
have played a role in many local resilience efforts: for example,
the Sunnyside project in Houston (Texas, US) powered around
5,000 low-income homes with solar energy in 2021, with the aim
of reducing energy costs and creating jobs.13
Many challenges remain for cities to take climate and energy
action. The degree to which national governments grant their city
counterparts regulatory power and access to financial markets
is decisive in cities’ abilities to advance renewables.14
Cities also
are subject to market rules and energy regulations set at higher
levels of government – and to the political dynamics that shape
these instruments.15
For example, persistent fossil fuel subsidies
adopted at the national level may contribute to a clash in priorities
and a lack of coherence between national and local policies.16
In 2021, state lawmakers in Ohio (US) enacted a law that allows
counties to veto renewable energy projects and that bans local
governments from restricting natural gas use; these developments
could impede the city of Columbus in achieving its 100% renewable
electricity target.17
In Florida, a 2021 law prohibits local governments
from any action restricting a utility’s energy choices, hampering St.
Petersburg’s progress on its 100% renewable energy target and
delaying Tampa’s passing of a target.18
Other factors affecting cities’ ability to advance renewables
include the lack of institutional and human capacities as well as
insufficient awareness of how cities can contribute to the energy
transition.19
In general, city voices remain underrepresented in
global energy and climate debates, and their role in supporting
national decarbonisation plans often is not reflected in
countries’ Nationally Determined Contributions (NDCs) towards
reducing emissions under the Paris Agreement.20
Although city
governments play no official role in the ongoing UN climate
negotiations, the Glasgow Climate Pact, for the first time,
emphasised the urgency of multi-level, co-operative action to
achieve the Paris goals.21
In response to the diverse challenges they face, some local
governments have collaborated with higher-level national
governments to realise renewable energy projects, while others have
initiated and/or supported legal challenges to remove legislative
barriers to climate and energy action. City engagement in global and
regional city networks seeking to tackle rising emissions – such as
the Global Covenant of Mayors for Climate Energy, ICLEI–Local
Governments for Sustainability and C40 Cities – also has grown.22
DRIVERS FOR RENEWABLES IN CITIES
Renewable energy developments vary by city and depend on
the local context, available resources, and community values
and needs. As such, the driversi
for renewables are influenced
by a city’s broader economic, social and environmental priorities.
Because city governments have close ties to their citizens, they
are motivated to seek solutions that meet local energy demand
while fostering healthy, resilient and liveable communities – often
in line with efforts towards a socially inclusive and just energy
transition.23
For cities that have reported renewable energy actions
under the CDP-ICLEI Unified Reporting System, the co-benefits
of renewables have included job creation, resource security,
economic growth, social inclusion and improved public health.24
With the COVID-19 pandemic entering its second year in 2021,
continued lockdowns and distancing requirements had a major
impact on urban priorities and the drivers for renewables. Efforts
to ensure public health and well-being while supporting local
economic recovery and resilience were top priorities.25
This
affected cities’ abilities to pursue renewable energy projects. For
example, in Houston, COVID-19 decreased the internal capacity
to address energy and sustainability issues.26
In Thailand, where
a national policy required local governments to prioritise the
pandemic, the town of Nongsamrong postponed renewable
energy activities due to limited staff availability.27
Grand Rapids
(Michigan, US) similarly delayed municipal solar photovoltaic
(PV) projects, citing lost tax revenues.28
BOX 13. Renewables in Cities at REN21
REN21’s Renewables in Cities Global Status Report (REC), published in 2019 and 2021,
provides an overview of the status, trends and developments of renewable energy in
cities, using the most up-to-date information and data available. The report aims to inform
decision makers, raise interest around the urban renewable energy story and inspire
continued action. The present chapter provides an update on key trends in anticipation
of the full Renewables in Cities 2023 Global Status Report, scheduled for release in early
2023. See ren21.net/cities for further information.
209

i This includes city governments that have passed a binding motion declaring a climate emergency. Following such a declaration, jurisdictions typically set
up a process to develop an action plan and report back within three to six months.
After the annual UN climate talks were postponed in 2020
due to the pandemic, public pressure on governments to take
climate action increased in 2021 in the lead-up to the Glasgow
meetings. Climate emergency declarations continued to spread,
although more slowly than in previous years as attention shifted
to the net zero movement. By late 2021, around 2,050 local
governments had declared a climate emergencyi
(up from 1,853
in 2020), dominated by localities in Canada, the Republic of
Korea, the United Kingdom and the United States.29
Many local
governments have used these declarations to emphasise their
net zero commitments, but it is not yet clear whether and how
they will be used to support renewables.30
Another priority in cities has been reducing local air pollution (and
carbon emissions) from the burning of fossil fuels in road transport,
buildings and industry.31
COVID lockdowns that curtailed traffic
and cleared the air increased pressure on city governments to
prioritise active transport modes such as cycling and walking, as
well as public transport.32
In September 2021, the World Health
Organization updated its Air Quality Guidelines, slashing by half
the guideline limit for the most damaging air pollution.33
In the face of rising energy costs towards the end of 2021 – a
trend that continued in early 2022 following the Russian invasion
of Ukraine – municipal agendas have prioritised keeping these
costs manageable, including for municipal utilities. Due to
spiking energy prices, several private energy providers went out
of business during this period, throwing consumers back to be
served by municipal utilities.34
In Germany alone, 39 providers
had ceased operations by early 2022.35
This has strained the
ability of municipal utilities to provide their customers with
reliable service.
CITY ENERGY AND CLIMATE TARGETS
Local energy and climate action continued to grow in 2021,
with many city governments prioritising renewables on their
policy and planning agendas.36
City governments have given
direct support to renewables deployment and investment by
setting specific renewable energy targets, either for municipal
operations (their own buildings and transport fleets) or to shift
city-wide energy use.37
Such targeting has taken diverse forms, ranging from aspirational
pledges and announcements, to participation in initiatives and
campaigns, to setting binding targets, to anchoring renewables in
policy documents and supporting measures. These efforts have
sent signals to citizens, industry and service providers about the
prioritisation of renewables and have set an example through the
creation and testing of new policies, thus pressuring higher levels
of governments to follow suit.38
By year’s end, more than 920 cities in 73 countries had set a
renewable energy target in at least one sector (power, heating
and cooling, or transport), up from around 830 cities in 2020.39
(p See Figure 64.) Most city targets are in highincome countries
(which can better access financial resources), such as Australia,
France, Germany, the United Kingdom and the United States.40
Nonetheless, targets have emerged around the world, including
in Argentina, India, Malaysia and South Africa.41
Targets remain
dominant in small and medium-sized cities (up to 500,000
people) but also are present in larger cities and megacities, with
New York and Los Angeles (both US) and Johannesburg (South
Africa) all adding targets in 2021.42
More than
920cities in
73countries
set a renewable energy
target.
210

Latin America
Asia
Heating
and cooling
Power
Renewable
energy
Transport
N/A
Europe
North America
Sectoral split up
of targets:
Oceania
Middle East and
North Africa
Sub-Saharan
Africa
1,534 targets
in 925 cities
9
2020
New in 2021
374
366
48
64
40
24
381
793
170
80
110
RENEWABLES
IN
CITIES
07
Note: The figure includes cities with renewable energy targets either for municipal operations or for city-wide energy use, or for both. Some cities have more
than one renewable energy target. Energy efficiency targets are not included in the calculations. For more information, see Reference Table R14 in GSR2022
Data Pack.
FIGURE 64.
Number of Cities with Renewable Energy Targets, by Region and Sector, 2020 and 2021
211

i The C40 Declaration offers three pathways for city action, which cities can pursue depending on their unique needs and circumstances. The declaration
does not include transport.
ii
This chapter relies on the terminology that cities generally use when setting targets and policies to decarbonise transport. This includes calls for “carbon-
neutral”, “zero-emission” or “clean” vehicles, which typically refer to electric vehicles and are not necessarily linked with renewable energy.
iii Also called green hydrogen. See Glossary for definition
iv In the lead-up to the Glasgow climate talks, more than 1,050 local governments (also including regions) pledged to reach net zero as part of Race To Zero,
with the target year being 2050 and interim targets set for 2030.
Urban renewable energy
targets (and policies)
often apply to either the
buildings or transport
sector (or both), with
only a few cities having
comprehensive system-
wide renewable energy
targets.43
Targets to shift to
renewables in buildings
are the most prevalent,
as well as commitments
to increase energy efficiency and expand the net zero building
stock. Almost 700 cities had such targets by the end of 2021,
most of which were for renewable power, although heating and
cooling targets and targets for renewables in buildings in general
also are increasing.44
In September, mayors from 15 cities, such as Buenos Aires
(Argentina), Lagos (Nigeria), Lisbon (Portugal) and Seoul
(Republic of Korea), were the initial signatories of the C40
Renewable Energy Declarationi
, committing to 100% renewable
electricity by 2050 and to decarbonising heating and cooking.45
Also in 2021, the Los Angeles City Council voted to transition
to 100% clean energy by 2035 (a decade earlier than originally
planned and in line with US national goals) by replacing the city’s
natural gas-powered electricity with wind and solar power and
battery storage.46
Momentum also is growing for dedicated targets to decarbonise
the heating of buildings and to expand access to clean cooking
fuels, particularly as electrification of the heat sector accelerates.47
In early 2022, London adopted a target to have 2.2 million electric
heat pumps city-wide by the end of 2030, as well as a district
heating network serving nearly half a million buildings, as part
of the city’s pathway to achieve net zero; these plans are more
ambitious than the UK’s national Heat and Buildings Strategy.48
Targets for scaling up renewables in transport are gaining
ground only slowly. Most targets for biofuels are established
at higher levels of government, although some cities have set
targets for the production of biogas and biomethane (usually from
waste-to-energy plants) that are aimed specifically at the (public)
transport sector.49
Only a few cities, such as Adelaide (Australia)
and Buenos Aires (Argentina), have targets for the procurement
of biofuel buses.50
In line with global trends, most city-level renewable transport
targets focus on electric vehiclesii
(EVs), with around 100 cities
having such targets in place.51
For example, Bengaluru (India),
Bogota (Colombia) and Chengdu (China) agreed to procure only
electric buses starting in either 2021 or 2022; often, such targets
are part of a plan to achieve a certain number or share of electric
buses in circulation by a certain year.52
Some EV targets are linked
directly to the use of renewable power, as in Mumbai (India) and
Seattle (Washington, US), which aim for a 100% electrified bus
fleet powered entirely by renewables.53
Although targets for renewable hydrogeniii
in cities are unusual,
interest in hydrogen buses for public transport is emerging,
particularly in China and the Republic of Korea (although typically
without specifications for renewable hydrogen).54
Beijing aims
to have more than 10,000 fuel cell vehicles on the road and to
build 37 hydrogen filling stations by 2025.55
In 2021, Los Angeles
became the first big US city to commit to renewable hydrogen,
with the L.A. Department of Water and Power aiming to transition
its 4,300 megawatts (MW) of fossil fuel power plants partly
to renewable hydrogen by 2025 and fully by 2030, in addition
to expanding hydrogen storage.56
Lancaster (California, US)
outlined similar plans.57
The global momentum towards emission reduction targets in
cities further accelerated in 2021. By year’s end, over 1,100 city
governments – in addition to regional and national governments
– had announced targets for net zero emissions, which reflects
a balance between CO2 emissions and removals.58
Some cities
have made net zero pledges on their own, while many others
have joined global networks, such as Race To Zeroiv
.59
Thanks
to these pledges, by the end of 2021 almost 1 billion people
were living in a city with a net zero target.60
City net zero targets
are most prevalent in Europe (led by France, Romania and the
United Kingdom) and Latin America and the Caribbean (led by
Argentina), followed by East Asia and North America.61
Only a few city governments have anchored their net zero
pledges in policy documents or developed a plan for achieving
this goal. In most cities, exact measures are still under discussion
or no status information on targets is available, highlighting
the importance of master plans that outline specific actions
and strategies towards net zero, including the deployment of
renewables.62
(p See Figure 65.)
Although most net zero targets are not explicitly linked with
renewable energy, nearly all scenarios that aim for net zero
emissions highlight the need to shift from fossil fuels to
renewables to achieve this goal.63
(p See Snapshot: Helsinki,
Finland.) Targets can stimulate the uptake of renewables
indirectly by mandating the phase-out of fossil fuels and
supporting the scale-up of renewables, alongside energy
efficiency measures. Yet many net zero announcements lack
a direct link to renewables. In an analysis of cities with more
than 250,000 inhabitants, only 161 of the 504 cities that had net
zero targets also had a renewable energy target as of 2021.64
(p See Figure 66.)
A variety of platforms and partnerships have been developed
to help cities report on their progress in achieving renewable
energy and climate targets. However, many cities lack the
resources to accurately track these advances.65
By late 2021, a
Over
1,100city
governments
announced net zero
targets.
212

Less than
9% of cities
250,000 have a net
zero and renewable
energy target.
population over 250,000
cities with a
cities have net zero targets
1,900
504
71%
of large cities
have no targets
in place
19%
have a
net zero
target
347
cities have a
net zero
target only
9%
have a net zero
and a renewable
energy target
161
cities
have a net zero
and a renewable
energy target
71%
of large cities
have no targets
in place
19%
have a
net zero
target
9%
have a net zero
and a renewable
energy target
Out of
Number of cities with a net zero target
Status of implementation (2021)
400
300
200
100
0
Europe North
America
Latin
America
Middle
East and
North
Africa
Sub-
Saharan
Africa
Asia Oceania
Unspecified
383
51%
Under
discussion
32%
In policy
document
10%
Declaration
or pledge
7%
199
320
7
27
208
16
1,156 city targets in total
2020
New in 2021
RENEWABLES
IN
CITIES
07
Note: The figure covers only cities with populations over 250,000 inhabitants. In addition, hundreds of smaller cities have also passed net-zero emission and/
or renewable energy targets. See reference table R15 in GSR2022 Data Pack.
Note: Calculations include the following: targets reported by the UNFCCC as either targets under discussion or in policy documents; emission reduction
targets of 80% and more; net zero buildings targets; and other targets including climate neutrality and zero-carbon targets in buildings. Calculations exclude
targets for 1.5°C, fossil-free targets and 100% energy self-sufficiency targets. See Reference Table R15 in GSR2022 Data Pack.
Source: Based on C40 Cities. See endnote 62 for this chapter.
FIGURE 65.
Cities with Net Zero Emission Targets and Status of Implementation, by Region, 2020 and 2021
FIGURE 66.
Net Zero Emission Targets and Renewable
Energy Targets in Cities with More Than
250,000 Inhabitants, 2021
record 1,128 local governments from 85 countries were reporting
their data through the CDP-ICLEI Unified Reporting System.66
More than 880 city governments reported actions related to
renewables.67
So far, the data indicate that most cities are not
on track to reach their targets. For example, as of 2021 Portland
(Oregon, US) had yet to set performance standards and to issue
an equity plan for its 2018 Portland Clean Energy Community
Benefits Fund, more than three years after its launch.68
213

SNAPSHOT. HELSINKI, FINLAND
Revamping District Heating
In Finland’s capital Helsinki, more than half of all district heat is
produced from coal, resulting in the heating sector contributing
well over half of the city’s greenhouse gas emissions. Pushed
by the national ban on coal in energy production as well as
Helsinki’s goal to become carbon neutral by 2030 (moved up
from 2035), the city launched a global competition to revamp
its district heating system. As part of this Helsinki Energy
Challenge, the city announced a USD 1 million prize competition
for the submission of master plans that eliminate coal-based
heat without increasing the share of heat from biomass.
More than 250 teams from 35 countries submitted proposals
during 2020. That December, 10 finalists were invited to
refine their plans, and by March 2021 four winners were
selected, demonstrating feasible, localised plans. The winning
proposals suggested a diverse set of solutions: 1) a market-
based strategy, using carbon-neutral heating auctions; 2) a
mixture of novel thermo-chemical energy storage with already
commercially available technologies; 3) a continually evolving
plan that integrates new technologies while using existing
technologies such as heat pumps and electric boilers in the
interim; and 4) taking advantage of the nearby Baltic Sea to
install inflatable hot seawater reservoirs that can double as
leisure attractions.
Although formal plans have not yet been announced to
implement the winning proposals, Helsinki has set a precedent
showing that collaboration and innovation are possible and
necessary for making the future of heating carbon-free. As part
of this challenge, the city also announced that it would share
winning proposals and solutions with other city governments to
inspire them on how to decarbonise their heating systems.
FINANCING RENEWABLES
City governments have used a variety of mechanisms to finance
renewable energy projects, which can be grouped broadly into:
using their own capital and/or assets to develop projects; raising
funds through bonds, development finance and bank loans;
and leveraging funds provided by higher levels of government.
Asheville (North Carolina, US) has worked with the county and
state governments to advance its 100% renewable energy target
by co-funding renewables projects.69
Cornwall Council (UK),
with support from several national departments and ministries,
secured around GBP 6 million (USD 8.1 million) to finance the
retrofitting of more than 700 homes and the installation of
solar PV.70
Another financing option is to collaborate with the
private sector on energy purchasing through public-private
partnerships.71
(p See Snapshot: Durban, South Africa.)
Theavailablesolutionsdependonthecontext,includingexistingrules
and regulations, ownership rights for infrastructure, the availability
of capital, the ability of municipalities to collect fiscal revenue and
borrow money, and the potential to mobilise private sector partners.
City governments are responsible for only part of the investment
within a city; private finance and household spending also play a role
and have their own priorities, planning horizons and constraints.72
214

i In 2021, Auckland, Copenhagen, Glasgow, Paris, Rio de Janeiro and Seattle signed on to C40’s Divesting from Fossil Fuels, Investing in a Sustainable
Future campaign, joining Berlin, Bristol, Cape Town, Durban, London, Los Angeles, Milan, New Orleans, New York City, Oslo, Pittsburgh and Vancouver.
RENEWABLES
IN
CITIES
07
Due to the spectrum of actors involved, tracking renewable
energy finance in cities remains difficult. Existing reporting on
urban climate finance flows shows that most public and private
capital spending for climate mitigation goes to sustainable
transport (including public transport and EVs), followed by
buildings infrastructure, energy efficiency, and on-site renewable
power and heat – with only a small share allocated to utility-scale
renewable generation.73
Public and private urban climate finance
flows averaged USD 384 billion annually in 2017 and 2018 (latest
estimates available), of which USD 4 billion was dedicated to
renewable energy generation.74
City governments, along
side other actors, also have begun
divesting their assets from fossil fuels; in some cases, this money
was re-invested directly in more sustainable options. By the end
of 2021, more than 170 city and local governments, as well as
some city pension funds, had divested from all or selected fossil
fuels.75
Ahead of the Glasgow climate talks, six cities including
Auckland (New Zealand), Glasgow and Rio de Janeiro (Brazil)
announced commitments to divest from fossil fuel companies,
raising the total number of cities participating in C40’s divestment
campaign (launched in 2020) to 18i
.76
SNAPSHOT. DURBAN, SOUTH AFRICA
Using Tenders to Finance
100% Renewable Electricity
In mid-2021, Durban (eThekwini) in South Africa passed
its Transition Policy, building on the city’s 2020 Climate
Action plan, which targets 40% electricity from low-carbon
technologies by 2030 and 100% by 2050. As part of this
plan, the city launched a tender in 2021 to procure up to
400 MW of additional electric capacity from independent
power producers in South Africa. This is the first tender
of its kind for Durban, made possible by a landmark
decision granted in late 2020 that enables South African
municipalities to procure new power generation capacity
outside of the state utility Eskom and to develop their
own capacity.
These developments were driven by the need to establish
an integrated municipal energy system with a diversified
generation mix, in order to provide affordable and reliable
energy for residents and businesses, improve energy
security and create jobs along the energy supply chain.
By procuring 400 MW from a diverse mix of sustainable,
dispatchable and reliable generation technologies, the city
hopes to enhance energy trade, stimulate competition and
reduce the effects of load shedding on the local economy.
The city called for all potential private developers, investors
and experienced energy infrastructure organisations to
submit proposals to support divestment from fossil fuels
and investment in renewable sources.
215

BUILDINGS
To achieve their renewable energy targets, municipal governments
have taken steps to decarbonise their building stock, with a focus
on transforming how buildings are powered, heated and cooled.
Broadly, these measures vary depending on whether they apply
to buildings under municipal control (e.g., local government
buildings, schools, hospitals, social housing), or to residential,
commercial and industrial buildings that account for city-wide
energy use. Measures also differ between new and existing
buildings, with many being applied initially to new buildings
before expanding in coverage.
ON-SITE GENERATION
By shifting to renewable power in municipal buildings, many
city governments have been able to showcase the feasibility
and business case of renewables.77
City governments have
used their building assets to install stand-alone renewable
energy systems on rooftops, façades and alongside buildings.
So far, most of the focus has been on solar PV (sometimes
with battery storage) and solar thermal, although modern
biomass boilers also have been deployed. In 2021, George
municipality (South Africa) installed a 300 kilowatt solar PV
plant to cover the electricity use of its main building.78
Denver
SNAPSHOT. PARIS, ROUEN AND LE HAVRE, FRANCE
Co-operation on Renewables
The French cities of Paris, Rouen and Le Havre recently
pooled their resources and approved the creation of Axe
Seine Energies Renouvelables, a local mixed-economy
company, in early 2022. The company aims to develop
50 renewable energy projects by 2030, including biomass,
solar PV, and wind, in addition to heat recovery and
hydrogen projects along the Seine River. An important
aspect of this initiative is that it will facilitate the ability to
pool human and financial resources around renewable
energy projects.
The 50 projects potentially represent an installed renewable
capacity of 250 MW. The mayors of the three cities had
indicated in October 2021 the desire to transform the
Seine into the first valley of decarbonisation in France. The
initiative is seen as a keen step towards this goal. To fund
the partnership, Le Havre and Rouen each will finance one-
quarter of the investment capital (at USD 2.2 million each),
a French public sector financial institution (the Caisse des
dépôts et consignations) will finance another quarter, and
the remaining funds will come from the City of Paris and
the Greater Paris Metropolis, which will add USD 1.1 million
each.
216

RENEWABLES
IN
CITIES
07
City Council (Colorado, US) moved forward with a USD 26
million investment in more than a dozen solar projects to cover
municipal power needs, while also adding solar charging
infrastructure for EVs.79
The electrification of heating is expanding in cities as well,
providing an opportunity to use renewable electricity to
operate appliances such as heat pumps.80
In 2021, Salford (UK)
installed 12 air-source heat pumps in addition to solar PV on
its municipal buildings, as part of its decarbonisation plans.81
In
some cases, city governments also have tapped into local wind,
biomass, geothermal and
hydropower resources
– whether for electricity,
for direct thermal heat,
for co- and tri-generation
of power and heat, or
to support the use of
renewables in district
energy networks.82
SNAPSHOT. US CITIES
Community Choice Aggregation
Power distribution in the United States operates under
a natural monopoly system: due to high upfront costs,
power utilities have exclusive coverage territories where
they alone generate, distribute and transmit electricity.
To expand the options, cities and municipalities across
the country have started to use Community Choice
Aggregation (CCAs) to procure renewable electricity on
behalf of residents. By bundling demand and acting as
a large energy buyer, a CCA can create large contracts,
demanding cheaper rates and a cleaner energy mix.
California has emerged as the leader of community
choice, as more than 160 towns, cities and counties have
joined some 25 CCAs across the state, procuring more
than 24 TWh from 2011 to 2018. Large cities such as
San Diego and San Francisco have made CCAs the
standard. However, smaller cities also have united in
regional CCAs – for example, Silicon Valley Clean Energy,
which services 13 smaller cities in the San Jose area.
Other US cities have followed suit. Boston, Massachusetts
launched its Community Choice Electricity program in
February 2021 and packages between 18% and 100% of
local renewable energy to residents. In Ohio, one of the
first US states to adopt CCAs (back in 2000), the City
of Columbus voted overwhelmingly in favour of a green
energy aggregation plan. Seven other states have enacted
laws enabling CCAs, making it easier for residents to
choose cheaper and cleaner energy.
Policies
differ between new and
existing buildings.
217

PURCHASE AGREEMENTS AND PARTNERSHIPS
In cases where city governments have insufficient space to
install renewables, or face other constraints, they have signed
agreements to buy the electricity from off-site projects (such
agreements are used for on-site generation as well). The most
common option is a power purchase agreement (PPA) for
municipal energy use (or, in some cases, for city-wide use).83
In early 2022, Cape Town (South Africa) announced a tender
to procure 300 MW of renewable energy from independent
power producers.84
Some cities have pooled their resources to
negotiate more favourable terms.85
(p See Snapshot: Paris, Rouen
and Le Havre, France.) In 2021, 24 local governments in the state
of Maryland (US) jointly purchased enough renewables to power
more than 246,000 homes a year.86
In the United States, off-site PPAs between cities and developers
of large-scale projects accounted for the vast majority of new
renewable power capacity from 2015 to 2021.87
During the period
from 2020 to 2021, local governments in at least 21 states signed
over 140 PPAs for off-site projects, totalling more than 7,500 MW
of capacity (3,500 MW in 2020 and nearly 4,000 MW through
2021); most of this was solar PV, with the rest being wind and
geothermal power.88
To overcome limited resources or rules set at higher levels of
jurisdiction, city governments have partnered with stakeholders
– including utilities and community energy projects – to advance
local renewable energy generation and distribution. In 2021,
Albury City (Australia) opened applications for an AUD 100,000
(USD 72,500) community energy fund, inviting local groups to
launch projects; similar funds exist in Bristol, Camden, Islington
and London (all UK).89
Cities also have launched community
choice aggregation programmes to increase the renewable
share in the electricity mix.90
(p See Snapshot: US Cities.) In
2021, Rochester (New York, US) announced that all 57,000
residents would be auto-enrolled in the Community Solar
Program, with an option to opt-out.91
MUNICIPAL ENERGY INFRASTRUCTURE
Many city governments have shaped their energy infrastructure
to support the integration of sectors and to better accommodate
renewables. This includes upgrading and expanding district
energy networks – including through the integration of local
renewables – and commissioning new networks.92
In 2021,
Africa’s largest district cooling plant was commissioned in
Egypt’s New Administrative Capital to serve the government and
financial districts and another 180 buildings.93
Sarajevo (Bosnia
and Herzegovina) signed an agreement with the European
Bank for Reconstruction and Development for a EUR 16 million
(USD 18 million) loan and a EUR 1.2 million (USD 1.4 million) grant
to convert its district heating network from oil to geothermal to
reduce air pollution.94
City governments also are linking energy supply with other urban
activities and services, such as using waste and wastewater
streams to produce biofuels.95
In 2021, Columbus City Council
(Ohio, US) announced a USD 30 million project to use sewage
treatment plants to produce biogas for electricity and heat.96
Similar
projects exist in Barcelona (Spain) and Vancouver (Canada).97
ALL CITY BUILDINGS
Because municipal buildings account for only a small share of the
total urban building stock, the success of meeting local renewable
energy targets and contributing to nationwide decarbonisation
also depends on energy use in buildings city-wide. To encourage
wider uptake of renewables, city governments have used
their role as regulators and policy makers to expand policy
portfolios.98
By the end of 2021, over 920 municipal governments
had implemented direct regulatory policies, financial and fiscal
incentives, and indirect support policies aimed at decarbonising
buildings through renewable power and/or renewable heating.99
(p See Figure 67.) Most measures focus on rooftop renewables
(mainly solar PV, and/or solar thermal), although policies
supporting the electrification of space and water heating (with
heat pumps) also are gaining ground.
Most urban policy makers apply different tools for new versus
existing building stocks. Typically, regulatory mechanisms such as
building codes that mandate on-site generation of renewables for
electricity and/or heating apply only to new buildings, although
some cities also require this during retrofits and renovations.
218

Renewable energy policies for buildings by type
cities with a passed/proposed
fossil fuel ban
600
500
400
300
200
100
0
Heating and
cooling
and power
in buildings
Power Heating and
cooling
44
Natural gas
7
Coal
4
Oil
4
Oil and
natural gas
ban
Enabling policies
Fiscal/financial policies
Regulatory policies
578
59
175
207
RENEWABLES
IN
CITIES
07
Such mechanisms are
increasingly common in
US and European cities in
particular. In 2021, Berlin
joined other German
cities such as Heidelberg
and Konstanz in requiring
solar PV and/or solar
thermal installations for
new residential buildings
and during big roof
renovations; the law will
go into effect in 2023 as part of the goal to reach 25% local
renewables.100
Industry players have pushed back against such developments.
In 2021, the consortium that oversees model building codes for
much of the United States and parts of Latin America and the
Caribbean stripped local governments of their right to vote on
future building codes, a move that has been attributed to the
influence of the construction and natural gas industries.101
For existing buildings, financial and fiscal incentives such as
grants, rebates and tax credits often are used to encourage
renewables.102
In 2021, Bonn, Essen and Ratingen (all Germany)
and St. Gallen (Switzerland) launched financial support schemes
for solar PV on all type of buildings.103
(p See Snapshot: Essen,
Germany.) Some schemes also extend to heat pumps: in late 2021,
London rolled out an energy efficiency and renewable energy
fund that grants up to GBP 20,000 (USD 27,000) for lowincome
households to install insulation, heat pumps, or solar PV panels,
to combat rising fuel poverty.104
To achieve zero emissions, Ithaca
(New York, US) aims to electrify all buildings, offering grants
and rebates to commercial owners and households (including
a special fund for low-income residents) to undertake energy
efficiency upgrades and install heat pumps.105
To improve local air quality, reduce energy dependence, and
indirectly support renewables, some city governments have
introduced bans and/or restrictions on the use of fossil fuels,
many of these since 2019.106
By the end of 2021, a total of
59 in 13 countries (up from 53 cities in 2020) had either passed
or proposed a ban or restriction on the use of natural gas, oil
or coal for space and water heating and for cooking; cities in
California lead in this movement.107
Some cities have updated
their building codes with electrification requirements for new
construction, effectively banning fossil fuels.108
In late 2021, New
York became the biggest city to restrict fossil fuel use in new
commercial and residential buildings starting in 2023, and in all
buildings by 2027.109
Some of these measures have met with resistance. Berkeley
(California, US) was taken to court by the restaurant industry
over its 2019 natural gas ban in new buildings; the court
dismissed the lawsuit in late 2021, opening the door for more
cities to pursue such restrictions.110
Note: Data should not be compared with previous years, due to revisions and adjusted methodology. Fossil fuel bans are categorised as enabling policies.
See Reference Table R16 in GSR2022 Data Pack.
FIGURE 67.
Urban Renewable Energy Policies in Buildings, by Type, 2021
59cities
passed or proposed
a ban or restriction
on fossil fuels.
219

SNAPSHOT. ESSEN, GERMANY
Solar Subsidies
Essen, Germany has launched both a solar programme and
a green roof programme in the city. Based on a council
decision in June 2021, the municipality started in January 2022
to provide financial subsidies for households and businesses
to install solar PV and solar thermal systems. This is part
of Essen’s target to deploy more than 2,200 new solar PV
installations by 2026, which would double the number of
existing installations.
Under the new regulation, the city will subsidise solar PV
systems of up to 40 kW, with the subsidy amount dependent
on the system size. Additional funding is provided for systems
that couple solar PV with a green roof or are installed on
building façades. The policy also supports community energy
projects at multi-family residences, with a higher financial
incentive for existing buildings. Solar thermal systems receive
a subsidy as well, with the amount varying depending on
whether the system is used for hot water or heating purposes.
The project has an annual budget of EUR 500,000
(USD 566,200). In addition, Sparkasse bank in Essen
supports the initiative by providing a low interest rate to
individuals for project loans of up to EUR 20,000 (USD 22,650).
Implementation of the funding programme and possible
further adjustments were to be evaluated in summer 2022.
TRANSPORT
Pushed by the need to improve local air quality and protect
public health and well-being, city governments have undertaken
efforts to decarbonise urban transport. Such measures often
are embedded in wider urban planning strategies that aim to
reduce the need for personal motorised transport by expanding
walking and biking infrastructure and creating secure, reliable
and affordable public transport systems.111
PUBLIC TRANSPORT AND MUNICIPAL FLEETS
City governments have made great strides in decarbonising their
municipal fleets and public transport systems. In line with global
trends, most city efforts have focused on the electrification of
municipal service fleets and public buses as well as the expansion
of metro and light rail systems.112
(p See Snapshot: Belgrade,
Serbia.) In 2021, more than 740 new electric buses were delivered
in Qatar (where they will operate as part of the Soccer World
Club), Mexico City (Mexico) and St. Louis (Missouri, US).113
St.
Louis also joined other US cities such as Albuquerque, Charlotte
and Sacramento in adopting “electric first” purchasing policies
that require departments to prioritise electric over conventional
vehicles where operationally feasible and cost effective.114
To power their public transport systems, some city governments
have installed dedicated renewable electricity capacity or signed
PPAs for this purpose. In Sydney (Australia), new electric buses
were rolled out in 2021 that include solar PV charging at the
depot.115
Utrecht (Netherlands) installed more than 2,000 solar
panels over a parking lot, along with 250 bi-directional chargers
that will enable electric cars to feed their stored solar power back
to the grid.116
Many cities have continued to use biofuels in transport, with
some tapping into urban waste and wastewater resources as
inputs for biofuel production. In 2021, Barcelona (Spain) launched
220

Number of cities with transport policies
Type of enabling policy
500
400
300
200
100
0
406
270
20
Low-emission zones
Bans and
restrictions
47
Others
Regulatory policies
Fiscal/financial policies
Enabling policies
RENEWABLES
IN
CITIES
07
a pilot project to produce biomethane from sewage sludge,
which is then used to fuel city buses.117
Hydrogen-powered city
buses are still in their infancy, but in 2021 a few entered operation
in Birmingham and London (both UK) and Zhangjiakou
(China); most hydrogen bus projects do not specify the use of
renewable hydrogen.118
Montpellier (France) dropped its order for
51 hydrogen buses in 2021, deeming that electric buses would be
more cost effective.119
Generally, city governments have relied on public procurement
and direct investment to source renewable fuels for their fleets.
In cases where public transport systems are not owned by the
city itself, collaboration with private companies and national
governments has played an important role.120
POLICIES FOR PRIVATE TRANSPORT
Because private vehicles account for most of the energy demand
and emissions from urban transport, at least 360 city governments
have implemented policies encouraging the shift to renewable-
based options.121
(p See Figure 68.) Only a few cities have
implemented regulatory policies for renewables in transport: for
example, Bogota (Colombia) and San Francisco (California, US)
have procurement requirements for the local use of biofuels.122
As the momentum to electrify transport grows, mandates
requiring EV chargers in new buildings have become more
widespread, often as part of building energy codes. In some
cases, “EV ready” codes are coupled with “solar ready” codes,
requiring vehicles to be charged with renewable electricity. In
August 2021, Orlando (Florida, US) passed an EV readiness
code, which entered into force in January 2022, for new
developments and enlargements of commercial and industrial
buildings, requiring a certain amount of parking spaces to be
equipped with EV chargers.123
Some municipal governments have provided fiscal and financial
support for the purchase of biofuel or electric vehicles, in some
cases targeted at taxi fleets and delivery companies. For example,
several of China’s major cities are providing a direct purchase
subsidy for zero-emission vehicles, in addition to lower parking
fees and subsiding the use of charging infrastructure.124
Such
policies were implemented in Chongqing, Guangzhou, Shenzhen,
Shijiazhuang and Zhengzhou during 2020 and 2021.125
The most widespread policy support is measures that enable
wider transport decarbonisation, such as low-emission
zones, bans and restrictions, improving access to charging
infrastructure as well as preferential parking. By the end of
2021, 270 cities had established low-emission zones (up from
249 cities in 2020) and 20 had passed bans and restrictions
on certain (fossil) fuels or vehicle types (up from 14 in 2020).126
As of early 2022, heavy vehicles are banned from entering
downtown Gateshead and Newcastle (both UK) and Hamilton
(Canada).127
In 2021, Petaluma (California) became the first US
city to ban the construction of new gas stations, driven by its
carbon neutral goal and a desire to tackle air pollution and
environmental concerns.128
Source: See endnote 121 for this chapter and Reference Table R16 in GSR2022 Data Pack.
FIGURE 68.
Urban Renewable Energy Policies in Transport by Type, 2021
Only Barcelona,
Bristol, Shanghai
and Stuttgart
have implemented LEZs
and passed vehicle bans.
221

ENERGY UNITS AND CONVERSION FACTORS
Example:
1 TJ = 1,000 GJ = 1,000,000 MJ = 1,000,000,000 kJ = 1,000,000,000,000 J
METRIC PREFIXES
kilo (k) = 103
mega (M) = 106
giga (G) = 109
tera (T) = 1012
peta (P) = 1015
exa (E) = 1018
VOLUME
1 m3
= 1,000 litres (l)
1 US gallon = 3.785412 l
1 Imperial gallon = 4.546090 l
Note on Biofuels:
1) These values can vary with fuel and temperature.
2)
Around 1.7 litres of ethanol is energy equivalent to 1 litre of petrol, and around 1.2 litres of biodiesel (FAME) is energy equivalent
to 1 litre of diesel.
3)
Energy values from http://ec.europa.eu/eurostat/statistics-explained/index.php/Glossary:Tonnes_of_oil_equivalent_(toe)
except HVO, which is from Neste Renewable Diesel Handbook, p. 15, https://www.neste.com/sites/default/files/attachments/
neste_renewable_diesel_handbook.pdf.
BIOFUELS CONVERSION
Ethanol: 21.4 MJ/l
Biodiesel (FAME): 32.7 MJ/l
Biodiesel (HVO): 34.4 MJ/l
Petrol: 36 MJ/l
Diesel: 41 MJ/l
SOLAR THERMAL HEAT SYSTEMS
1 million m2
= 0.7 GWth
Used where solar thermal heat data have been converted
from square metres (m2
) into gigawatts thermal (GWth), by
accepted convention.
ENERGY UNIT CONVERSION
Example: 1 MWh x 3.600 = 3.6 GJ
Toe = tonnes (metric) of oil equivalent
1 Mtoe = 41.9 PJ
Multiply by: GJ Toe MBtu MWh
GJ 1 0.024 0.948 0.278
Toe 41.868 1 39.683 11.630
MBtu 1.055 0.025 1 0.293
MWh 3.600 0.086 3.412 1
222

MN
DATA COLLECTION AND VALIDATION
REN21 has developed a unique renewable energy reporting culture, allowing it to become recognised as a neutral data and knowledge
broker that provides credible and widely accepted information. Transparency is at the heart of the REN21 data and reporting culture,
and the following text explains some of the GSR’s key processes for data collection and validation.
DATA COLLECTION
Production of REN21’s GSR is a continuous process occurring on
an annual basis. The data collection process begins following the
launch of the previous year’s report with an Expression of Interest
form to mobilise REN21’s GSR contributors. During this time, the
GSR team also prepares the questionnaires that will be filled in
by contributors. The questionnaires are updated each year with
emerging and relevant topics as identified by the REN21 Secretariat.
The data collection process involves the following elements:
1.
Open data collection. In the open data collection questionnaire,
contributors from around the world submit data on renewable
energy in their respective countries or countries of interest. This
covers information on annual developments in renewable energy
technologies, market trends, policies and local perspectives. The
questionnaire also collects data related to energy access from
respondents – with a focus on developing and emerging countries
–onthestatusofelectrificationandcleancookingaswellaspolicies
and programmes for energy access and markets for distributed
renewables. Each data point is provided with a source and verified
independently by the REN21 GSR team. Data collection with
the country questionnaire typically begins in October.
2. Regional contributors. For some world regions, REN21 appoints
one principal data contributor to provide specific renewable energy
data across different sectors and to share an overview of general
trends and developments of renewables in the specific region.
3. Peer review. To further collect data and project examples and to
ensure that significant developments have not been overlooked,
GSR contributors and reviewers participate in an open peer
review process that takes place twice during each report cycle.
For GSR 2022, the first round occurred in January and included
an overview of the annotated outline, while the second round
was held in March/April and included a review of the full draft
report. Peer review is open to all interested experts.
4. Expert interviews. REN21’s global community consists of a
wide range of professionals who provide their expert input on
renewable energy trends in the target year through interviews
and personal communication with the REN21 GSR team and
chapter authors. The vast majority of the information is backed
up by primary sources.
5. Desk research. To fill in remaining gaps in the GSR and to
pursue new topics, the REN21 GSR team and chapter authors
conduct extensive desk research. Topics of research vary
widely between GSR years and depend on emerging topics,
important trends and annual availability of formal or informal
data in the target sector.
6.
Policy database (national, sub-national, cities). The
REN21 GSR team compiles data on policy-specific indicators,
especially targets and policies. This is collected from regional
contributors and through desk research. For the city-level data,
this builds also on existing consolidated datasets at the global
or regional level.
7. Data-sharing agreements. REN21 holds several data-
sharing agreements with some of the largest and most
reliable data providers/aggregators in the energy sector.
These formal data are used exclusively in some cases or, in
others, form the foundation of calculations and estimations
presented in the GSR.
DATA VALIDATION
REN21 ensures the accuracy and reliability of its reports by conducting data validation and fact-checking as a continuous process.
Beginning during the first submission of the country questionnaires, data are continually verified up through the design period and until
the final report is published. All data provided by contributors, whether written or verbal, are validated by primary sources,
which are published alongside the full report.
223

METHODOLOGICAL NOTES
This 2022 report is the 17th edition of the Renewables Global
Status Report (GSR), which has been produced annually since
2005 (with the exception of 2008). Readers are directed to the
previous GSR editions for historical details.
Most 2021 data for national and global capacity, output, growth
and investment provided in this report are preliminary. Where
necessary, information and data that are conflicting, partial
or older are reconciled by using reasoned expert judgment.
Endnotes provide additional details, including references,
supporting information and assumptions where relevant.
Each edition draws from thousands of published and unpublished
references, including: official government sources; reports from
international organisations and industry associations; input from
the GSR community via hundreds of questionnaires submitted
by country, regional and technology contributors as well as
feedback from several rounds of formal and informal reviews;
additional personal communications with scores of international
experts; and a variety of electronic newsletters, news media and
other sources.
Much of the data found in the GSR is built from the ground
up by the authors with the aid of these resources. This often
involves extrapolation of older data, based on recent changes in
key countries within a sector or based on recent growth rates
and global trends. Other data, often very specific and narrow in
scope, come more-or-less prepared from third parties. The GSR
attempts to synthesise these data points into a collective whole
for the focus year.
The GSR endeavours to provide the best data available in each
successive edition; as such, data should not be compared with
previous versions of this report to ascertain year-by-year changes.
NOTE ON ESTABLISHING RENEWABLE ENERGY SHARES OF
TOTAL FINAL ENERGY CONSUMPTION (TFEC)
Assumptions Related to Renewable Electricity Shares of TFEC
When estimating electricity consumption from renewable
sources, the GSR must make certain assumptions about how
much of the estimated gross output from renewable electricity
generating resources actually reaches energy consumers, as part
of total final energy consumption.
The International Energy Agency’s (IEA) World Energy Statistics
and Balances reports electricity output by individual technology.
However, it does not report electricity consumption by technology
– only total consumption of electricity.
The difference between gross output and final consumption is
determined by:
n
The energy industry’s own-use, including electricity used for
internal operations at power plants. This includes the power
consumption of various internal loads, such as fans, pumps
and pollution controls at thermal plants, and other uses such
as electricity use in coal mining and fossil fuel refining.
n
Transmission and distribution losses that occur as electricity
finds its way to consumers.
Industry’s own-use. The common method is to assume that
the proportion of consumption by technology is equal to the
proportion of output by technology. This is problematic because
logic dictates that industry’s own-use cannot be proportionally
the same for every generating technology. Further, industry’s
own-use must be somewhat lower for some renewable
generating technologies (particularly non-thermal renewables
such as hydropower, solar PV and wind power) than is the case
for fossil fuel and nuclear power technologies. Such thermal
power plants consume significant amounts of electricity to meet
their own internal energy requirements (see above).
Therefore, the GSR has opted to apply differentiated “industry
own-use” by generating technology. This differentiation is based
on explicit technology-specific own-use (such as pumping at
hydropower facilities) as well as on the apportioning of various
categories of own-use by technology as deemed appropriate.
For example, industry own-use of electricity at coal mines and oil
refineries is attributed to fossil fuel generation.
Differentiated own-uses by technology, combined with global
average losses, are as follows: solar PV, ocean energy and wind
power (8.2%); hydropower (10.1%); concentrating solar thermal
power (CSP) (14.2%); and bio-power (15.2%). For comparison, the
undifferentiated (universal) combined losses and industry own-
use would be 16.7% of gross generation. Estimated technology-
specific industry own-use of electricity from renewable sources
is based on data for 2019 from IEA, World Energy Balances, 2021
edition.
Transmission and distribution losses. Such losses may differ
(on average) by generating technology. For example, hydropower
plants often are located far from load centres, incurring higher-
than-average transmission losses, whereas some solar PV
generation may occur near to (or at) the point of consumption,
incurring little (or zero) transmission losses. However, specific
information by technology on a global scale is not available.
Therefore, the GSR has opted to apply a global average for
transmission and distribution losses. Global average electricity
losses are based on data for 2019 from IEA, World Energy
Balances, 2021 edition.
NOTES ON RENEWABLE ENERGY IN TOTAL FINAL ENERGY
CONSUMPTION, BY ENERGY USE
GSR 2022 presents an illustration of the share of renewable energy
in total final energy consumption by sector in 2019. (p See Figure 3
in Global Overview chapter.) The share of TFEC consumed in each
sector is provided as follows: thermal (51%), transport (32%) and
electricity (17%). There are three important points about this figure
and about how the GSR treats end-use TFEC in general:
1.
Definition of Heating and Cooling and Thermal Applications
In the GSR, the term “heating and cooling” refers to applications
of thermal energy including space and water heating, space
cooling, refrigeration, drying and industrial process heat, as well
as 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.
224

MN
2. Sectoral Shares of TFEC
In Figure 3, each sectoral share of TFEC portrays the energy
demand for all end-uses within the sector. The shares of TFEC
allocated to thermal and to transport also account for the electricity
consumed in these sectors – that is, electricity for space heating
and space cooling, industrial process heat, etc., and electricity for
transport. These amounts have been reallocated from final demand
in the electricity sector. Therefore, the share of TFEC allocated to the
electricity sector comprises all final end-uses of electricity that are
not used for heating, cooling or transport. This was a methodological
change in GSR 2019 that was intended to strengthen the accuracy
of the representation. In total, the final energy consumption of all
electrical energy accounted for 21.7% of TFEC in 2019.
3. Shares of Non-Renewable Electricity
Figure 3 illustrates the share of non-renewable electricity in
thermal and in transport to emphasise that electricity demand
is being allocated to each sector. The share of non-renewable
electricity is not critical to the figure content, so the percentage
value of non-renewable electricity in each sector is not explicitly
shown, but it is included in this note. In 2019, all electricity for
heating and cooling met 7.8% of final energy demand in the
sector (2.2% renewable and 5.6% non-renewable electricity). All
electricity for transport met 1.2% of final energy demand in the
sector (0.3% renewable and 0.9% non-renewable electricity).
NOTES ON RENEWABLE ENERGY CAPACITIES AND ENERGY
OUTPUT
A number of issues arise when counting renewable energy
capacities and energy output. Some of these are discussed below:
1. Capacity versus Energy Data
The GSR aims to give accurate estimates of capacity additions
and totals, as well as of electricity, heat and transport fuel
production in the focus year. These measures are subject to
some uncertainty, which varies by technology. The Market and
Industry chapter includes estimates for energy produced where
possible, but it focuses mainly on power or heat capacity data.
This is because capacity data generally can be estimated with a
greater degree of confidence than generation data. Official heat
and electricity generation data often are not available for the
target year within the production time frame of the GSR.
2.
Constructed Capacity versus Connected Capacity and
Operational Capacity
Over a number of years in the past decade, the solar PV and wind
power markets saw increasing amounts of capacity that was
connected to the grid but not yet deemed officially operational, or
constructed capacity that was not connected to the grid by year’s
end. Therefore, since the 2012 edition the GSR has aimed to count
only capacity additions that were grid-connected or that otherwise
went into service (e.g., capacity intended for off-grid use) during
the previous calendar (focus) year. However, it appears that this
phenomenon is no longer an issue, with the exception of wind
power installations in China, where it was particularly evident over
the period 2009-2019. For details on the situation in China and on
the reasoning for capacity data used in this GSR, see endnote 24
in the Wind Power section of the Market and Industry chapter.
3. Retirements and Replacements
Data on capacity retirements and replacements (re-powering)
are incomplete for many technologies, although data on several
technologies do attempt to account for these directly. It is not
uncommon for reported new capacity installations to exceed the
implied net increase in cumulative capacity; in some instances, this
is explained by revisions to data on installed capacity, while in others
it is due to capacity retirements and replacements. Where data are
available, they are provided in the text or relevant endnotes.
4. Bioenergy Data
Given existing complexities and constraints, the GSR strives to
provide the best and latest data available regarding bioenergy
developments. The reporting of biomass-fired combined heat
and power (CHP) systems varies among countries; this adds
to the challenges experienced when assessing total heat and
electricity capacities and total bioenergy outputs.
Wherever possible, the bio-power data presented include capacity
and generation from both electricity-only and CHP systems using
solid biomass, landfill gas, biogas and liquid biofuels. Electricity
generation and capacity numbers are based on national data for
the focus year in the major producing countries and on forecast
data for remaining countries for the focus year from the IEA.
The methodology is similar for biofuels production data, with
data for most countries (not major producers) from the IEA;
however, data for hydrotreated vegetable oil (HVO) are estimated
based on production statistics for the (relatively few) major
producers. Bio-heat data are based on an extrapolation of the
latest data available from the IEA based on recent growth trends.
(p See Bioenergy section in Market and Industry chapter.)
5. Hydropower Data and Treatment of Pumped Storage
Starting with the 2012 edition, the GSR has made an effort to
report hydropower generating capacity without including pure
pumped storage capacity (the capacity used solely for shifting
water between reservoirs for storage purposes). The distinction is
made because pumped storage is not an energy source but rather
a means of energy storage. It involves conversion losses and can
be fed by all forms of electricity, renewable and non-renewable.
Some conventional hydropower facilities do have pumping
capability that is not separate from, or additional to, their normal
generating capability. These facilities are referred to as “mixed”
plants and are included, to the extent possible, with conventional
hydropowerdata.ItistheaimoftheGSRtodistinguishandseparate
only the pure (or incremental) pumped storage component.
Where the GSR presents data for renewable power capacity
not including hydropower, the distinction is made because
hydropower remains the largest single component by far of
renewable power capacity, and thus can mask developments
in other renewable energy technologies if included. Investments
and jobs data separate out large-scale hydropower where original
sources use different methodologies for tracking or estimating
values. Footnotes and endnotes provide additional details.
225

6. Solar PV Capacity Datai
The capacity of a solar PV panel is rated according to direct
current (DC) output, which in most cases must be converted
by inverters to alternating current (AC) to be compatible with
end-use electricity supply. No single equation is possible for
calculating solar PV data in AC because conversion depends on
many factors, including the inverters used, shading, dust build-up,
line losses and temperature effects on conversion efficiency. The
difference between DC and AC power can range from as little as
5% (conversion losses or inverter set at the DC level) to as much
as 40% (due to grid regulations limiting output or to the evolution
of utility-scale systems), and most utility-scale plants built in 2019
have ratios in the range of 1.1 to 1.6.ii
The GSR attempts to report all solar PV capacity data on the basis
of DC output (where data are known to be provided in AC, this is
specified) for consistency across countries. Some countries (for
example, Canada, Chile, India, Japan, Malaysia, Spain, Sweden
and the United States) report official capacity data on the basis
of output in AC; these capacity data were converted to DC
output by data providers (see relevant endnotes) for the sake
of consistency. Global renewable power capacity totals in this
report include solar PV data in DC; as with all statistics in this
report, they should be considered as indicative of global capacity
and trends rather than as exact statistics.
7. Concentrating Solar Thermal Power (CSP) Data
Global CSP data are based on commercial facilities only.
Demonstration or pilot facilities and facilities of 5 MW or
less are excluded. Discrepancies between REN21 data and
other reference sources are due primarily to differences in
categorisation and thresholds for inclusion of specific CSP
facilities in overall global totals. The GSR aims to report net CSP
capacities for specific CSP plants that are included. In certain
cases, it may not be possible to verify if the reported capacity
of a given CSP plant is net or gross capacity. In these cases net
capacity is assumed.
8. Solar Thermal Heat Data
Starting with GSR 2014, the GSR includes all solar thermal
collectors that use water as the heat transfer medium (or heat
carrier) in global capacity data and the ranking of top countries.
Previous GSRs focused primarily on glazed water collectors (both
flat plate and evacuated tube); the GSR now also includes unglazed
water collectors, which are used predominantly for swimming pool
heating. Since the GSR 2018, data for concentrating collectors
are available. These include new installations overall as well as
in key markets and total in operation by year’s end. The market
for solar air collectors (solar thermal collectors that use air as the
heat carrier) and hybrid or PV-thermal technologies (elements that
produce both electricity and heat) is small, and the data are rather
uncertain. All three collector types – air, concentrating and hybrid
collectors – are included where specified.
NOTES ON RENEWABLE ENERGY IN TOTAL FINAL ENERGY
CONSUMPTION FOR SELECTED COUNTRIES
Country-level estimates of the renewable share of total final
energy consumption are provided in GSR 2022 for more than 80
countries. These estimates were prepared from IEA World Energy
Balances and Statistics 2021 data via an analysis framework using
the Python programming language. This framework applied the
same methodological principles and calculations described above
by processing the data using a Python package called pandas.
Processing the data in this manner introduced two major
assumptions for the country-level estimates.
The first is regarding the import/export of electricity. Since the
calculations return a share of renewables in TFEC, an estimate of
the technological share of electricity consumption is necessary.
IEA data provide shares of production by technology, but not
consumption. This is further complicated as countries import and
export electricity, sometimes in vast quantities. For many countries,
the electricity consumption share can be assumed to be roughly
equivalent to the share of electricity production, thus no adjustment
is needed. For others, this assumption can be misleading, notably
when the country produces far more electricity than it produces
(Paraguay, for example, exports around three times as much
hydropower as it uses). Despite this limitation, a full accounting
for the electricity imports and exports was beyond the scope of
this analysis framework and it was thus assumed that production
share is equivalent to consumption share. After experimenting
with several options for estimating the imports and exports, it
was determined that this assumption produces the most realistic
results (with the exception of a few heavily exporting countries).
The second assumption is regarding the share of renewable
electricity used for heating. On a global level, this estimate has
been provided by the IEA. However, these data do not exist at
the country level in a consolidated form. Some estimates were
prepared using data from the IEA’s Energy Efficiency Extended
Indicators database. In other countries, global average estimates of
11.8% of building heat demand and 4.2% of industrial heat demand
were applied for 2019. These values were incremented through the
years by adjusting the share of renewable electricity for heat based
on the growth of renewable electricity between the two years.
OTHER NOTES
Editorial content of this report closed by 31 May 2022 for technology
data, and by 15 May 2022 or earlier for other content.
Growth rates in the GSR are calculated as compound annual growth
rates (CAGR) rather than as an average of annual growth rates.
All exchange rates in this report are as of 31 December 2021 and
are calculated using the OANDA currency converter (http://www.
oanda.com/currency/converter).
Corporate domicile, where noted, is determined by the location of
headquarters.
i See Solar PV section of the Market and Industry chapter for sources on capacity data.
ii See IEA Photovoltaic Power Systems Programme (PVPS), Trends in Photovoltaic Applications 2019, p. 9, and IEA PVPS, Snapshot of Global PV Markets 2020, p. 11.
226

GL
GLOSSARY
Absorption chillers. Chillers that use heat energy from any
source (solar, biomass, waste heat, etc.) to drive air conditioning or
refrigeration systems. The heat source replaces the electric power
consumption of a mechanical compressor. Absorption chillers
differ from conventional (vapour compression) cooling systems in
two ways: 1) the absorption process is thermochemical in nature
rather than mechanical, and 2) the substance that is circulated
as a refrigerant is water rather than chlorofluorocarbons (CFCs)
or hydrochlorofluorocarbons (HCFCs), also called Freon. The
chillers generally are supplied with district heat, waste heat or
heat from co-generation, and they can operate with heat from
geothermal, solar or biomass resources.
Adsorption chillers. Chillers that use heat energy from any
source to drive air conditioning or refrigeration systems. They
differ from absorption chillers in that the adsorption process
is based on the interaction between gases and solids. A solid
material in the chiller’s adsorption chamber releases refrigerant
vapour when heated; subsequently, the vapour is cooled
and liquefied, providing a cooling effect at the evaporator by
absorbing external heat and turning back into a vapour, which is
then re-adsorbed into the solid.
Agrivoltaic. Simultaneous use of agricultural land both for
growing crops and for installing a solar photovoltaic (PV) energy
system. With the agrivoltaic system, certain types of agricultural
products can be grown in conjunction with the electricity
generation, often cultivated beneath the solar panel installation.
Auction. See Tendering.
Bagasse. The fibrous matter that remains after extraction of
sugar from sugar cane.
Behind-the-meter system. Any power generation capacity,
storage or demand management on the customer side of the
interface with the distribution grid (i.e., the meter). (Also see Front-
of-meter system.)
Biodiesel. A fuel produced from oilseed crops such as soy,
rapeseed (canola) and palm oil, and from other oil sources such
as waste cooking oil and animal fats. Biodiesel is used in diesel
engines installed in cars, trucks, buses and other vehicles, as
well as in stationary heat and power applications. Most biodiesel
is made by chemically treating vegetable oils and fats (such as
palm, soy and canola oils, and some animal fats) to produce fatty
acid methyl esters (FAME). (Also see Hydrotreated vegetable oil
(HVO) and hydrotreated esters and fatty acids (HEFA).)
Bioeconomy (or bio-based economy). Economic activity
related to the invention, development, production and use of
biomass resources for the production of food, fuel, energy,
chemicals and materials.
Bioenergy. Energy derived from any form of biomass (solid, liquid
or gaseous) for heat, power and transport. (Also see Biofuel.)
Biofuel. A liquid or gaseous fuel derived from biomass, primarily
ethanol, biodiesel and biogas. Biofuels can be combusted in vehicle
engines as transport fuels and in stationary engines for heat and
electricity generation. They also can be used for domestic heating
and cooking (for example, as ethanol gels). Conventional biofuels
are principally ethanol produced by fermentation of sugar or starch
crops (such as wheat and corn), and FAME biodiesel produced
from oil crops such as palm oil and canola and from waste oils and
fats. Advanced biofuels are made from feedstocks derived from the
lignocellulosic fractions of biomass sources or from algae. They
are made using biochemical and thermochemical conversion
processes, some of which are still under development.
Biogas/Biomethane. Biogas is a gaseous mixture consisting
mainly of methane and carbon dioxide produced by the anaerobic
digestion of organic matter (broken down by microorganisms
in the absence of oxygen). Organic material and/or waste is
converted into biogas in a digester. Suitable feedstocks include
agricultural residues, animal wastes, food industry wastes,
sewage sludge, purpose-grown green crops and the organic
components of municipal solid wastes. Raw biogas can be
combusted to produce heat and/or power. It also can be refined
to produce biomethane.
Biomass. Any material of biological origin, excluding fossil
fuels or peat, that contains a chemical store of energy (originally
received from the sun) and that is available for conversion to a
wide range of convenient energy carriers.
Biomass, traditional (use of). Solid biomass (including fuel
wood, charcoal, agricultural and forest residues, and animal
dung), that is used in rural areas of developing countries with
traditional technologies such as open fires and ovens for cooking
and residential heating. Often the traditional use of biomass leads
to high pollution levels, forest degradation and deforestation.
Biomass energy, modern. Energy derived from combustion
of solid, liquid and gaseous biomass fuels in high-efficiency
conversion systems, which range from small domestic appliances
to large-scale industrial conversion plants. Modern applications
include heat and electricity generation, combined heat and
power (CHP) and transport.
Biomass gasification. In a biomass gasification process,
biomass is heated with a constrained amount of air or oxygen,
leading to the partial combustion of the fuels and production of a
mix of combustion gases that, depending on the conditions, can
include carbon monoxide and dioxide, methane, hydrogen and
more complex materials such as tars. The resulting gas can either
be used for power generation (e.g., in an engine or turbine) or else
further purified and treated to form a “synthesis gas”. This can
then be used to produce fuels including methane, alcohols, and
higher hydrocarbon fuels, including bio-gasoline or jet fuel. While
gasification for power or heat production is relatively common,
there are few examples of operating plants producing gas of high
enough quality for subsequent synthesis to more complex fuels.
Biomass pellets. Solid biomass fuel produced by compressing
pulverised dry biomass, such as waste wood and agricultural
residues. Pellets typically are cylindrical in shape with a diameter
of around 10 millimetres and a length of 30-50 millimetres.
Pellets are easy to handle, store and transport and are used as
fuel for heating and cooking applications, as well as for electricity
generation and CHP. (Also see Torrefied wood.)
Biomethane. Biogas can be turned into biomethane by removing
impurities including carbon dioxide, siloxanes and hydrogen
sulphides, followed by compression. Biomethane can be injected
227

directly into natural gas networks and used as a substitute
for natural gas in internal combustion engines without risk of
corrosion. Biomethane is often known as renewable natural gas
(RNG), especially in North America.
Blockchain. A decentralised ledger in which digital transactions
(such as the generation and sale of a unit of solar electricity) are
anonymously recorded and verified. Each transaction is securely
collected and linked, via cryptography, into a time-stamped
“block”. This block is then stored on distributed computers as a
“chain”. Blockchain may be used in energy markets, including for
micro-trading among solar PV prosumers.
Building energy codes and standards. Rules specifying the
minimum energy standards for buildings. These can include
standards for renewable energy and energy efficiency that are
applicable to new and/or renovated and refurbished buildings.
Capacity. The rated power of a heat or electricity generating
plant, which refers to the potential instantaneous heat or electricity
output, or the aggregate potential output of a collection of such
units (such as a wind farm or set of solar panels). Installed capacity
describes equipment that has been constructed, although it may
or may not be operational (e.g., delivering electricity to the grid,
providing useful heat or producing biofuels).
Capacity factor. The ratio of the actual output of a unit of
electricity or heat generation over a period of time (typically one
year) to the theoretical output that would be produced if the unit
were operating without interruption at its rated capacity during
the same period of time.
Capital subsidy. A subsidy that covers a share of the upfront
capital cost of an asset (such as a solar water heater). These include,
for example, consumer grants, rebates or one-time payments by a
utility, government agency or government-owned bank.
Carbon intensity. Measure of carbon emitted by weight per
megajoule of energy produced, or rate of produced greenhouse
gas emissions to gross domestic product.
Carbon neutrality. The achievement of a state in which every tonne
of carbon dioxide emitted to the atmosphere is compensated by
an equivalent tonne removed (e.g., sequestered). Emissions can
be compensated for by carbon offsets.
City. No international criteria or standards exist to determine what
a city is. Most definitions of “cities” rely on settlement density and/
or population numbers, although the criteria vary widely across
countries. Generally, the term “urban area” refers to settlement
areas that are more densely populated than suburban or peri-
urban communities within the same metropolitan area. The term
“city”, meanwhile, has broader meanings: according to the United
Nations, it can connote a political or civic entity, a geographic
unit, a formalised economy or an infrastructure bundle. In some
instances, local communities, neighbourhood associations, urban
businesses and industries may be subsumed under the term “city”.
Throughout the GSR, municipal and city government refers to the
local decision-making bodies and government authorities (the
mayor’s office, city council, etc.), unless noted otherwise. In addition
to municipal governments, key city-level stakeholders include
individual citizens, groups of citizens and private enterprises, as
well as various civil society groups that are active within the city.
City-wide. Extending or happening in all parts of a city.
Combinedheatandpower(CHP)(alsocalledco-generation).
CHP facilities produce both heat and power from the combustion
of fossil and/or biomass fuels, as well as from geothermal and
solar thermal resources. The term also is applied to plants that
recover “waste heat” from thermal power generation processes.
Community energy. An approach to renewable energy
development that involves a community initiating, developing,
operating, owning, investing and/or benefiting from a
project. Communities vary in size and shape (e.g., schools,
neighbourhoods, partnering city governments, etc.); similarly,
projects vary in technology, size, structure, governance, funding
and motivation.
Community choice aggregation (CCA). Under a CCA,
municipalities themselves (independently or in partnership with
an agency running the CCA) aggregate their residents’ and
businesses’ electricity demand and set out to procure electricity
for all participating customers city-wide through direct contracts
with energy producers or through third-party energy providers.
By enabling local communities to procure their own electricity,
CCAs can be an attractive option for cities that want more local
control over their electricity mix, for instance to increase the share
of renewable electricity.
Competitive bidding. See Tendering.
Concentrating photovoltaics (CPV). Technology that uses
mirrors or lenses to focus and concentrate sunlight onto a
relatively small area of photovoltaic cells that generate electricity
(see Solar photovoltaics). Low-, medium- and high-concentration
CPV systems (depending on the design of reflectors or lenses
used) operate most efficiently in concentrated, direct sunlight.
Concentrating solar collector technologies. Technologies
that use mirrors to focus sunlight on a receiver (see Concentrating
solar thermal power). These are usually smaller-sized modules
that are used for the production of heat and steam below
400 degrees Celsius (°C) for industrial applications, laundries and
commercial cooking.
Concentrating solar thermal power (CSP) (also called solar
thermal electricity, STE). Technology that uses mirrors to focus
sunlight into an intense solar beam that heats a working fluid
in a solar receiver, which then drives a turbine or heat engine/
generator to produce electricity. The mirrors can be arranged
in a variety of ways, but they all deliver the solar beam to the
receiver. There are four types of commercial CSP systems:
parabolic troughs, linear Fresnel, power towers and dish/engines.
The first two technologies are line-focus systems, capable of
concentrating the sun’s energy to produce temperatures of
400°C, while the latter two are point-focus systems that can
produce temperatures of 800°C or higher.
Conversion efficiency. The ratio between the useful energy
output from an energy conversion device and the energy input
into it. For example, the conversion efficiency of a PV module
is the ratio between the electricity generated and the total solar
energy received by the PV module. If 100 kilowatt-hours (kWh) of
solar radiation is received and 10 kWh of electricity is generated,
the conversion efficiency is 10%.
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Crowdfunding. The practice of funding a project or venture
by raising money – often relatively small individual amounts –
from a relatively large number of people (“crowd”), generally
using the Internet and social media. The money raised through
crowdfunding does not necessarily buy the lender a share in the
venture, and there is no guarantee that money will be repaid if
the venture is successful. However, some types of crowdfunding
reward backers with an equity stake, structured payments and/
or other products.
Curtailment. A reduction in the output of a generator, typically on
an involuntary basis, from what it could produce otherwise given
the resources available. Curtailment of electricity generation has
long been a normal occurrence in the electric power industry and
can occur for a variety of reasons, including a lack of transmission
access or transmission congestion.
Degression. A mechanism built into policy design establishing
automatic rate revisions, which can occur after specific thresholds
are crossed (e.g., after a certain amount of capacity is contracted,
or a certain amount of time passes).
Demand-side management. The application of economic
incentives and technology in the pursuit of cost-effective energy
efficiency measures and load-shifting on the customer side, to
achieve least-cost overall energy system optimisation.
Demand response. Use of market signals such as time-of-use
pricing, incentive payments or penalties to influence end-user
electricity consumption behaviours. Usually used to balance
electrical supply and demand within a power system.
Digitalisation. The application of digital technologies across the
economy, including energy.
Digitisation. The conversion of something (e.g., data or an
image) from analogue to digital.
Distributed generation. Generation of electricity from
dispersed, generally small-scale systems that are close to the
point of consumption.
Distributed renewable energy. Energy systems are
considered to be distributed if 1) the systems are connected to
the distribution network rather than the transmission network,
which implies that they are relatively small and dispersed (such
as small-scale solar PV on rooftops) rather than relatively
large and centralised; or 2) generation and distribution occur
independently from a centralised network. Specifically for the
purpose of the chapter on Distributed Renewables for Energy
Access, “distributed renewable energy” meets both conditions.
It includes energy services for electrification, cooking, heating
and cooling that are generated and distributed independent
of any centralised system, in urban and rural areas of the
developing world.
Distribution grid. The portion of the electrical network that takes
power off the high-voltage transmission network via sub-stations
(at varying stepped-down voltages) and distributes electricity to
customers.
Divestment. Removal or selling of an investment from stranded
assets, funds, bonds or stocks. Divestment is an opposite action
to investment.
Drop-in biofuel. A liquid biofuel that is functionally equivalent to
a liquid fossil fuel and is fully compatible with existing fossil fuel
infrastructure.
Electric vehicle (EV). Includes any road-, rail-, sea- and air-
based transport vehicle that uses electric drive and can take an
electric charge from an external source, or from hydrogen in the
case of a fuel cell electric vehicle (FCEV). Electric road vehicles
encompass battery electric vehicles (BEVs), plug-in hybrids
(PHEVs) and FCEVs, all of which can include passenger vehicles
(i.e., electric cars), commercial vehicles including buses and
trucks, and two- and three-wheeled vehicles.
Energy. The ability to do work, which comes in a number of forms
including thermal, radiant, kinetic, chemical, potential and electrical.
Primary energy is the energy embodied in (energy potential
of) natural resources, such as coal, natural gas and renewable
sources. Final energy is the energy delivered for end- use (such
as electricity at an electrical outlet). Conversion losses occur
whenever primary energy needs to be transformed for final energy
use, such as combustion of fossil fuels for electricity generation.
Energy audit. Analysis of energy flows in a building, process or
system, conducted with the goal of reducing energy inputs into
the system without negatively affecting outputs.
Energy conservation. Any change in behaviour of an energy-
consuming entity for the specific purpose of affecting an energy
demand reduction. Energy conservation is distinct from energy
efficiency in that it is predicated on the assumption that an
otherwise preferred behaviour of greater energy intensity is
abandoned. (See Energy efficiency and Energy intensity.)
Energy efficiency. The measure that accounts for delivering
more services for the same energy input, or the same amount of
services for less energy input. Conceptually, this is the reduction
of losses from the conversion of primary source fuels through
final energy use, as well as other active or passive measures to
reduce energy demand without diminishing the quality of energy
services delivered. Energy efficiency is technology-specific and
distinct from energy conservation, which pertains to behavioural
change. Both energy efficiency and energy conservation can
contribute to energy demand reduction.
Energy intensity. Primary energy consumption per unit of
economic output. Energy intensity is a broader concept than
energy efficiency in that it is also determined by non-efficiency
variables, such as the composition of economic activity. Energy
intensity typically is used as a proxy for energy efficiency in
macro-level analyses due to the lack of an internationally agreed-
upon high-level indicator for measuring energy efficiency.
Energy service company (ESCO). A company that provides a
range of energy solutions including selling the energy services
from a (renewable) energy system on a long-term basis while
retaining ownership of the system, collecting regular payments
from customers and providing necessary maintenance service. An
ESCO can be an electric utility, co-operative, non-governmental
organisation or private company, and typically installs energy
systems on or near customer sites. An ESCO also can advise on
improving the energy efficiency of systems (such as a building or
an industry) as well as on methods for energy conservation and
energy management.
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Energy subsidy. A government measure that artificially reduces
the price that consumers pay for energy or that reduces energy
production cost.
Energy sufficiency. Entails a change or shift in actions and
behaviours (at the individual and collective levels) in the way energy
is used. Results in access to energy for everyone while limiting the
impacts of energy use on the environment. For example, avoiding
the use of cars and spending less time on electrical devices.
Environmental, social and governance (ESG) criteria, also
known as “sustainable investing”. A collection of standards
for measuring key sustainability factors in a firm or industry’s
green investment. Environmental criteria relate to the quality
and functioning of the natural environment and natural systems,
and also may include pollution, energy use, climate change,
greenhouse gas emissions, changes in land use and waste
management. Social criteria refer to well-being, human rights,
human capital, labour standards in the supply chain, child,
slave and bonded labour, workplace health and safety, freedom
of association and expression, diversity, relations with local
communities, activities in conflict zones, health and access to
medicine, and consumer protection. Governance criteria relate to
the governance of companies and other investee entities, such as
disclosure of information, business ethics, bribery and corruption,
internal controls and risk management, and relationships between
a company’s management, shareholders and stakeholders.
Ethanol (fuel). A liquid fuel made from biomass (typically corn,
sugar cane or small cereals/grains) that can replace petrol in
modest percentages for use in ordinary spark-ignition engines
(stationary or in vehicles), or that can be used at higher blend
levels (usually up to 85% ethanol, or 100% in Brazil) in slightly
modified engines, such as those provided in “flex-fuel” vehicles.
Ethanol also is used in the chemical and beverage industries.
Fatty acid methyl esters (FAME). See Biodiesel.
Feed-in policy (feed-in tariff or feed-in premium). A policy
that typically guarantees renewable generators specified
payments per unit (e.g., USD per kWh) over a fixed period.
Feed-in tariff (FIT) policies also may establish regulations by
which generators can interconnect and sell power to the grid.
Numerous options exist for defining the level of incentive, such
as whether the payment is structured as a guaranteed minimum
price (e.g., a FIT), or whether the payment floats on top of the
wholesale electricity price (e.g., a feed-in premium).
Final energy. The part of primary energy, after deduction of
losses from conversion, transmission and distribution, that
reaches the consumer and is available to provide heating, hot
water, lighting and other services. Final energy forms include,
among others, electricity, district heating, mechanical energy,
liquid hydrocarbons such as kerosene or fuel oil, and various
gaseous fuels such as natural gas, biogas and hydrogen.
(Total) Final energy consumption (TFEC). Energy that is
supplied to the consumer for all final energy services such as
transport, cooling and lighting, building or industrial heating or
mechanical work. Differs from total final consumption (TFC),
which includes all energy use in end-use sectors (TFEC) as well
as for non-energy applications, mainly various industrial uses,
such as feedstocks for petrochemical manufacturing.
Fiscal incentive. An incentive that provides individuals,
households or companies with a reduction in their contribution
to the public treasury via income or other taxes.
Flywheel energy storage. Energy storage that works by
applying available energy to accelerate a high-mass rotor
(flywheel) to a very high speed and thereby storing energy in the
system as rotational energy.
Front-of-meter system. Any power generation or storage
device on the distribution or transmission side of the network.
(Also see Behind-the-meter system.)
Generation. The process of converting energy into electricity
and/or useful heat from a primary energy source such as wind,
solar radiation, natural gas, biomass, etc.
Geothermal energy. Heat energy emitted from within the
earth’s crust, usually in the form of hot water and steam. It can be
used to generate electricity in a thermal power plant or to provide
heat directly at various temperatures.
Green bond. A bond issued by a bank or company, the proceeds
of which will go entirely into renewable energy and other
environmentally friendly projects. The issuer will normally label it
as a green bond. There is no internationally recognised standard
for what constitutes a green bond.
Green building. A building that (in its construction or operation)
reduces or eliminates negative impacts and can create positive
impacts on the climate and natural environment. Countries and
regions have a variety of characteristics that may change their
strategies for green buildings, such as building stock, climate,
cultural traditions, or wide-ranging environmental, economic and
social priorities – all of which shape their approach to green building.
Green energy purchasing. Voluntary purchase of renewable
energy – usually electricity, but also heat and transport fuels – by
residential, commercial, government or industrial consumers, either
directly from an energy trader or utility company, from a third-party
renewable energy generator or indirectly via trading of renewable
energy certificates (such as renewable energy credits, green tags
and guarantees of origin). It can create additional demand for
renewable capacity and/or generation, often going beyond that
resulting from government support policies or obligations.
Heat pump. A device that transfers heat from a heat source to
a heat sink using a refrigeration cycle that is driven by external
electric or thermal energy. It can use the ground (geothermal/
ground-source), the surrounding air (aerothermal/air-source) or
a body of water (hydrothermal/water-source) as a heat source in
heating mode, and as a heat sink in cooling mode. A heat pump’s
final energy output can be several multiples of the energy input,
depending on its inherent efficiency and operating condition. The
output of a heat pump is at least partially renewable on a final
energy basis. However, the renewable component can be much
lower on a primary energy basis, depending on the composition
and derivation of the input energy; in the case of electricity, this
includes the efficiency of the power generation process. The
output of a heat pump can be fully renewable energy if the input
energy is also fully renewable.
Hydropower. Electricity derived from the potential energy of
water captured when moving from higher to lower elevations.
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Categories of hydropower projects include run-of-river, reservoir-
based capacity and low-head in-stream technology (the least
developed). Hydropower covers a continuum in project scale
from large (usually defined as more than 10 megawatts (MW) of
installed capacity, but the definition varies by country) to small,
mini, micro and pico.
Hydrotreated vegetable oil (HVO) and hydrotreated esters
and fatty acids (HEFA). Biofuels produced by using hydrogen
to remove oxygen from waste cooking oils, fats and vegetable
oils. The result is a hydrocarbon that can be refined to produce
fuels with specifications that are closer to those of diesel and jet
fuel than is biodiesel produced from triglycerides such as fatty
acid methyl esters (FAME).
Inverter (and micro-inverter), solar. Inverters convert the direct
current (DC) generated by solar PV modules into alternating
current (AC), which can be fed into the electric grid or used by
a local, off-grid network. Conventional string and central solar
inverters are connected to multiple modules to create an array
that effectively is a single large panel. By contrast, micro-inverters
convert generation from individual solar PV modules; the output
of several micro-inverters is combined and often fed into the
electric grid. A primary advantage of micro-inverters is that
they isolate and tune the output of individual panels, reducing
the effects that shading or failure of any one (or more) module(s)
has on the output of an entire array. They eliminate some design
issues inherent to larger systems, and allow for new modules to
be added as needed.
Investment. Purchase of an item of value with an expectation
of favourable future returns. In the GSR, new investment
in renewable energy refers to investment in: technology
research and development, commercialisation, construction of
manufacturing facilities and project development (including the
construction of wind farms and the purchase and installation of
solar PV systems). Total investment refers to new investment plus
merger and acquisition (MA) activity (the refinancing and sale
of companies and projects).
Investment tax credit. A fiscal incentive that allows investments
in renewable energy to be fully or partially credited against the tax
obligations or income of a project developer, industry, building
owner, etc.
Joule. A joule (J) is a unit of work or energy equal to the work
done by a force equal to one newton acting over a distance of
one metre. One joule is equal to one watt-second (the power of
one watt exerted over the period of one second). The potential
chemical energy stored in one barrel of oil and released when
combusted is approximately 6 gigajoules (GJ); a tonne of oven-
dry wood contains around 20 GJ of energy.
Levelised cost of energy/electricity (LCOE). The cost per
unit of energy from an energy generating asset that is based on
the present value of its total construction and lifetime operating
costs, divided by total energy output expected from that asset
over its lifetime.
Long-term strategic plan. A strategy to achieve energy savings
over a specified period of time (i.e., several years), including
specific goals and actions to improve energy efficiency, typically
spanning all major sectors.
Mandate/Obligation. A measure that requires designated
parties (consumers, suppliers, generators) to meet a minimum –
and often gradually increasing – standard for renewable energy
(or energy efficiency), such as a percentage of total supply, a
stated amount of capacity, or the required use of a specified
renewable technology. Costs generally are borne by consumers.
Mandates can include renewable portfolio standards (RPS);
building codes or obligations that require the installation of
renewable heat or power technologies (often in combination
with energy efficiency investments); renewable heat purchase
requirements; and requirements for blending specified shares of
biofuels (biodiesel or ethanol) into transport fuel.
Market concession model. A model in which a private
company or non-governmental organisation is selected through
a competitive process and given the exclusive obligation to
provide energy services to customers in its service territory,
upon customer request. The concession approach allows
concessionaires to select the most appropriate and cost-effective
technology for a given situation.
Merit order. A way of ranking available sources of energy
(particularly electricity generation) in ascending order based on
short-run marginal costs of production, such that those with the
lowest marginal costs are the first ones brought online to meet
demand, and those with the highest are brought on last. The
merit-order effect is a shift of market prices along the merit-order
or supply curve due to market entry of power stations with lower
variable costs (marginal costs). This displaces power stations with
the highest production costs from the market (assuming demand
is unchanged) and admits lower-priced electricity into the market.
Micromobility. A form of transport that includes modes such
as electric sidewalk/“kick” scooters and dockless bicycles (both
electric and traditional), as well as electric moped-style scooters
and ride-hailing and car-sharing services. Many micromobility
service companies have committed to sustainability measures,
including the use of renewable electricity for charging vehicles as
well as for operations.
Mini-grid/Micro-grid. For distributed renewable energy
systems for energy access, a mini-grid/micro-grid typically refers
to an independent grid network operating on a scale of less than
10 MW (with most at very small scale) that distributes electricity
to a limited number of customers. Mini-/micro-grids also can
refer to much larger networks (e.g., for corporate or university
campuses) that can operate independently of, or in conjunction
with, the main power grid. However, there is no universal definition
differentiating mini- and micro-grids.
Molten salt. An energy storage medium used predominantly
to retain the thermal energy collected by a solar tower or solar
trough of a concentrating solar power plant, so that this energy
can be used at a later time to generate electricity.
Monitoring. Energy use is monitored to establish a basis for
energy management and to provide information on deviations
from established patterns.
Municipal operations. Services or infrastructure that are owned
and/or operated by municipal governments. This may include
municipal buildings and transport fleets (such as buses, policy
vehicles and refuse collection trucks).
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Municipal solid waste. Waste materials generated by
households and similar waste produced by commercial, industrial
or institutional entities. The wastes are a mixture of renewable
plant and fossil-based materials, with the proportions varying
depending on local circumstances. A default value that assumes
that at least 50% of the material is “renewable” is often applied.
Net metering/Net billing. A regulated arrangement in which
utility customers with on-site electricity generators can receive
credits for excess generation, which can be applied to offset
consumption in other billing periods. Under net metering,
customers typically receive credit at the level of the retail
electricity price. Under net billing, customers typically receive
credit for excess power at a rate that is lower than the retail
electricity price. Different jurisdictions may apply these terms in
different ways, however.
Net zero. Net zero emissions refers to achieving an overall
balance between greenhouse gas emissions produced and
greenhouse gas emissions emitted from the atmosphere.
The concept involves equating the quantity of gases such as
carbon dioxide, methane, nitrous oxide that are released into
the atmosphere due to human-induced activities and cause the
greenhouse effect, with the quantity of greenhouse gases that
are naturally absorbed by the earth.
Net zero carbon building/Net zero energy building/Nearly
zero energy building. Various definitions have emerged of
buildings that achieve high levels of energy efficiency and meet
remaining energy demand with either on-site or off-site renewable
energy. For example, the World Green Building Council’s Net Zero
Carbon Buildings Commitment considers use of renewable energy
as one of five key components that characterise a net zero building.
Definitions of net zero carbon, net zero energy and nearly zero
energy buildings can vary in scope and geographic relevance.
Non-motorised transport (NMT). Walking, cycling, and their
variants; also called “active transport” or “human-powered travel”.
Ocean power. Refers to technologies used to generate
electricity by harnessing from the ocean the energy potential
of ocean waves, tidal range (rise and fall), tidal streams, ocean
(permanent) currents, temperature gradients (ocean thermal
energy conversion) and salinity gradients. The definition of ocean
power used in the GSR does not include offshore wind power or
marine biomass energy.
Off-take agreement. An agreement between a producer of energy
and a buyer of energy to purchase/sell portions of the producer’s
future production. An off-take agreement normally is negotiated
prior to the construction of a renewable energy project or installation
of renewable energy equipment in order to secure a market for
the future output (e.g., electricity, heat). Examples of this type of
agreement include power purchase agreements and feed-in tariffs.
Off-taker. The purchaser of the energy from a renewable energy
project or installation (e.g., a utility company) following an off-take
agreement. (See Off-take agreement.)
Pay-as-you-go (PAYGo). A business model that gives customers
(mainly in areas without access to the electricity grid) the possibility
to purchase small-scale energy-producing products, such as solar
home systems, by paying in small instalments over time.
Peaker generation plant. Power plants that run predominantly
during peak demand periods for electricity. Such plants exhibit
the optimum balance – for peaking duty – of relatively high
variable cost (fuel and maintenance cost per unit of generation)
relative to fixed cost per unit of energy produced (low capital cost
per unit of generating capacity).
Pico solar devices/pico solar systems. Small solar systems
such as solar lanterns that are designed to provide only a limited
amount of electricity service, usually lighting and in some cases
mobile phone charging. Such systems are deployed mainly in areas
that have no or poor access to electricity. The systems usually
have a power output of 1-10 watts and a voltage of up to 12 volts.
Plug-in hybrid electric vehicle. This differs from a simple
hybrid vehicle, as the latter uses electric energy produced only
by braking or through the vehicle’s internal combustion engine.
Therefore, only a plug-in hybrid electric vehicle allows for the
use of electricity from renewable sources. Although not an
avenue for increased penetration of renewable electricity, hybrid
vehicles contribute to reduced fuel demand and remain far more
numerous than EVs.
Power. The rate at which energy is converted into work,
expressed in watts (joules/second).
Power purchase agreement (PPA). A contract between two
parties, one that generates electricity (the seller) and one that is
looking to purchase electricity (the buyer).
Power-to-gas (P2G). The conversion of electricity, either
from renewable or conventional sources, to a gaseous fuel (for
example, hydrogen or methane).
Primary energy. The theoretically available energy content of
a naturally occurring energy source (such as coal, oil, natural
gas, uranium ore, geothermal and biomass energy, etc.) before
it undergoes conversion to useful final energy delivered to the
end-user. Conversion of primary energy into other forms of useful
final energy (such as electricity and fuels) entails losses. Some
primary energy is consumed at the end-user level as final energy
without any prior conversion.
Primary energy consumption. The direct use of energy at the
source, or supplying users with unprocessed fuel.
Product and sectoral standards. Rules specifying the
minimum standards for certain products (e.g., appliances) or
sectors (industry, transport, etc.) for increasing energy efficiency.
Production tax credit. A tax incentive that provides the investor
or owner of a qualifying property or facility with a tax credit based
on the amount of renewable energy (electricity, heat or biofuel)
generated by that facility.
Productive use of energy. Often used in the context of distributed
renewables for energy access to refer to activities that use energy
to generate income, increase productivity, enhance diversity and
create economic value. Productive uses of energy may include local
activities such as agriculture, livestock and fishing; light mechanical
works such as welding, carpentry and water pumping; small retail
and commercial activities such as tailoring, printing, catering and
entertainment; and small and medium-scale production such as
agro-processing (grinding, milling and husking), refrigeration and
cold storage, drying, preserving and smoking.
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Property Assessed Clean Energy (PACE) financing. Provides
access to low-interest loans for renewable energy and energy
efficiency improvements that can be repaid through increases on
property taxes. It was originally conceived of in the United States
and now is beginning to expand worldwide.
Prosumer. An individual, household or small business that not
only consumes energy but also produces it. Prosumers may play
an active role in energy storage and demand-side management.
Public financing. A type of financial support mechanism
whereby governments provide assistance, often in the form of
grants or loans, to support the development or deployment of
renewable energy technologies.
Pumped storage. Plants that pump water from a lower reservoir
to a higher storage basin using surplus electricity, and that
reverse the flow to generate electricity when needed. They are
not energy sources but means of energy storage and can have
overall system efficiencies of around 80-90%.
Regulatory policy. A rule to guide or control the conduct of
those to whom it applies. In the renewable energy context,
examples include mandates or quotas such as renewable
portfolio standards, feed-in tariffs and technology/fuel-specific
obligations.
(Re-)Municipalisation. Legal process by which municipalities
assume control of their electricity procurement and distribution
assets, generally through purchase from private entities.
Renewable energy certificate (REC). A certificate awarded to
certify the generation of one unit of renewable energy (typically
1 MWh of electricity but also less commonly of heat). In systems
based on RECs, certificates can be accumulated to meet
renewable energy obligations and also provide a tool for trading
among consumers and/or producers. They also are a means of
enabling purchases of voluntary green energy.
Renewable hydrogen. Hydrogen produced from renewable
energy, most commonly through the use of renewable electricity
to split water into hydrogen and oxygen in an electrolyser. The
vast majority of hydrogen is still produced from fossil fuels, and
the majority of policies and programmes focused on hydrogen do
not include a focus on renewables-based production.
Renewable natural gas (RNG). Gas that is produced through
the anaerobic digestion of organic matter and processed to
remove the carbon dioxide and other gases, leaving methane that
meets a high specification and that can be interchangeable with
conventional natural gas. See Biomethane.
Renewable portfolio standard (RPS). An obligation placed
by a government on a utility company, group of companies
or consumers to provide or use a predetermined minimum
targeted renewable share of installed capacity, or of electricity
or heat generated or sold. A penalty may or may not exist for
non-compliance. These policies also are known as “renewable
electricity standards”, “renewable obligations” and “mandated
market shares”, depending on the jurisdiction.
Reverse auction. See Tendering.
Sector integration (also called sector coupling). The
integration of energy supply and demand across electricity,
thermal and transport applications, which may occur via
co-production, combined use, conversion and substitution.
Smart energy system. An energy system that aims to optimise
the overall efficiency and balance of a range of interconnected
energy technologies and processes, both electrical and non-
electrical (including heat, gas and fuels). This is achieved through
dynamic demand- and supply-side management; enhanced
monitoring of electrical, thermal and fuel-based system assets;
control and optimisation of consumer equipment, appliances
and services; better integration of distributed energy (on both
the macro and micro scales); and cost minimisation for both
suppliers and consumers.
Smart grid. Electrical grid that uses information and
communications technology to co-ordinate the needs and
capabilities of the generators, grid operators, end-users and
electricity market stakeholders in a system, with the aim of
operating all parts as efficiently as possible, minimising costs
and environmental impacts and maximising system reliability,
resilience and stability.
Smart grid technology. Advanced information and control
technology that is required for improved systems integration and
resource optimisation on the grid.
Smart inverter. An inverter with robust software that is capable
of rapid, bidirectional communications, which utilities can control
remotely to help with issues such as voltage and frequency
fluctuations in order to stabilise the grid during disruptive events.
Solar collector. A device used for converting solar energy to
thermal energy (heat), typically used for domestic water heating
but also used for space heating, for industrial process heat or to
drive thermal cooling machines. Evacuated tube and flat plate
collectors that operate with water or a water/glycol mixture as
the heat-transfer medium are the most common solar thermal
collectors used worldwide. These are referred to as glazed water
collectors because irradiation from the sun first hits a glazing
(for thermal insulation) before the energy is converted to heat
and transported away by the heat transfer medium. Unglazed
water collectors, often referred to as swimming pool absorbers,
are simple collectors made of plastics and used for lower-
temperature applications. Unglazed and glazed air collectors use
air rather than water as the heat-transfer medium to heat indoor
spaces or to pre-heat drying air or combustion air for agriculture
and industry purposes.
Solar cooker. A cooking device for household and institutional
applications that converts sunlight to heat energy that is retained
for cooking. There are several types of solar cookers, including
box cookers, panel cookers, parabolic cookers, evacuated tube
cookers and trough cookers.
Solar home system. A stand-alone system composed of a
relatively low-power photovoltaic module, a battery and some-
times a charge controller that can provide modest amounts of
electricity for home lighting, communications and appliances,
usually in rural or remote regions that are not connected to the
electricity grid. The term solar home system kit is also used to
define systems that usually are branded and have components
that are easy for users to install and use.
233

Solar photovoltaics (PV). A technology used for converting
light directly into electricity. Solar PV cells are constructed from
semiconducting materials that use sunlight to separate electrons
from atoms to create an electric current. Modules are formed by
interconnecting individual cells. Building-integrated PV (BIPV)
generates electricity and replaces conventional materials in parts
of a building envelope, such as the roof or facade.
Solar photovoltaic-thermal (PV-T). A solar PV-thermal hybrid
system that includes solar thermal collectors mounted beneath
PV modules to convert solar radiation into electrical and thermal
energy. The solar thermal collector removes waste heat from the
PV module, enabling it to operate more efficiently.
Solar-plus-storage. A hybrid technology of solar PV with
battery storage. Other types of renewable energy-plus-storage
plants also exist.
Solar water heater (SWH). An entire system consisting of a solar
collector, storage tank, water pipes and other components. There
are two types of solar water heaters: pumped solar water heaters
use mechanical pumps to circulate a heat transfer fluid through
the collector loop (active systems), whereas thermosyphon solar
water heaters make use of buoyancy forces caused by natural
convection (passive systems).
Storage battery. A type of battery that can be given a new
charge by passing an electric current through it. A lithium-
ion battery uses a liquid lithium-based material for one of its
electrodes. A lead-acid battery uses plates made of pure lead
or lead oxide for the electrodes and sulphuric acid for the
electrolyte, and remains common for off-grid installations. A
flow battery uses two chemical components dissolved in liquids
contained within the system and most commonly separated by a
membrane. Flow batteries can be recharged almost instantly by
replacing the electrolyte liquid, while simultaneously recovering
the spent material for re-energisation.
Sustainable aviation fuel (SAF). According to the International
Civil Aviation Organization, such fuels are produced from
three families of bio-feedstock: the family of oils and fats (or
triglycerides), the family of sugars and the family of lignocellulosic
feedstock.
Target. An official commitment, plan or goal set by a government
(at the local, state, national or regional level) to achieve a certain
amount of renewable energy or energy efficiency by a future date.
Targets may be backed by specific compliance mechanisms or
policy support measures. Some targets are legislated, while
others are set by regulatory agencies, ministries or public officials.
Tender (also called auction/reverse auction or tender). A
procurement mechanism by which renewable energy supply or
capacity is competitively solicited from sellers, who offer bids at
the lowest price that they would be willing to accept. Bids may be
evaluated on both price and non-price factors.
Thermal energy storage. Technology that allows the transfer
and storage of thermal energy. (See Molten salt.)
Torrefied wood. Solid fuel, often in the form of pellets, produced
by heating wood to 200–300°C in restricted air conditions. It has
useful characteristics for a solid fuel including relatively high energy
density, good grindability into pulverised fuel and water repellency.
Transmission grid. The portion of the electrical supply
distribution network that carries bulk electricity from power
plants to sub-stations, where voltage is stepped down for further
distribution. High-voltage transmission lines can carry electricity
between regional grids in order to balance supply and demand.
Variable renewable energy (VRE). A renewable energy source
that fluctuates within a relatively short time frame, such as wind
and solar energy, which vary within daily, hourly and even sub-
hourly time frames. By contrast, resources and technologies that
are variable on an annual or seasonal basis due to environmental
changes, such as hydropower (due to changes in rainfall) and
thermal power plants (due to changes in temperature of ambient
air and cooling water), do not fall into this category.
Vehicle fuel standard. A rule specifying the minimum fuel
economy of automobiles.
Vehicle-to-grid (V2G). A system in which electric vehicles –
whether battery electric or plug-in hybrid – communicate with the
grid in order to sell response services by returning electricity from
the vehicles to the electric grid or by altering the rate of charging.
Virtual net metering. Virtual (or group) net metering allows
electricity utility consumers to share the output of a renewable
power project. By receiving “energy credits” based on project
output and their ownership share of the project, consumers are
able to offset costs on their electricity utility bill.
Virtual power plant (VPP). A network of decentralised,
independently owned and operated power generating units
combined with flexible demand units and possibly also with
storage facilities. A central control station monitors operation,
forecasts demand and supply, and dispatches the networked
units as if they were a single power plant. The aim is to smoothly
integrate a high number of renewable energy units into existing
energy systems; VPPs also enable the trading or selling of power
into wholesale markets.
Virtual power purchase agreement (VPPA). A contract under
which the developer sells its electricity in the spot market. The
developer and the corporate off-taker then settle the difference
between the variable market price and the strike price, and the
off-taker receives the electricity certificates that are generated.
This is in contrast to more traditional PPAs, under which the
developer sells electricity to the off-taker directly.
Voltage and frequency control. The process of maintaining
grid voltage and frequency stable within a narrow band through
management of system resources.
Watt. A unit of power that measures the rate of energy conversion
or transfer. A kilowatt is equal to 1 thousand watts; a megawatt to
1 million watts; and so on. A megawatt-electrical (MWe) is used
to refer to electric power, whereas a megawatt-thermal (MWth)
refers to thermal/heat energy produced. Power is the rate at
which energy is consumed or generated. A kilowatt-hour is the
amount of energy equivalent to steady power of 1 kW operating
for one hour.
234

GL
LIST OF ABBREVIATIONS
AfDB African Development Bank
ASEAN Association of Southeast Asian Nations
AUD Australian dollar
CAPEX Capital expenditure
CCA Community choice aggregation
CHP Combined heat and power
CNY Chinese yuan
CO2 Carbon dioxide
COP Conference of the Parties
CSP Concentrating solar thermal power
DREA Distributed renewables for energy access
ECOWAS Economic Community of West African States
EJ Exajoule
ESCO Energy service company
ESG Environmental, Social and Governance
ETS Emission trading system
EU European Union (specifically the EU-27)
EUR Euro
EV Electric vehicle
FAME Fatty acid methyl esters
FIT Feed-in tariff
G20 Group of Twenty
GBP British pound
GDP Gross domestic product
GSR Global Status Report
GW/GWh Gigawatt/gigawatt-hour
GWth Gigawatt-thermal
HEFA Hydrotreated esters and fatty acids
HJT Heterojunction cell technology
HVO Hydrotreated vegetable oil
ICE Internal combustion engine
IEA International Energy Agency
IRENA International Renewable Energy Agency
ktoe Kilotonne of oil equivalent
kW/kWh Kilowatt/kilowatt-hour
kWth Kilowatt-thermal
LCOE Levelised cost of energy (or electricity)
LPG Liquefied petroleum gas
m2
Square metre
MJ Megajoule
Mtoe Megatonne of oil equivalent
MW/MWh Megawatt/megawatt-hour
MWth Megawatt-thermal
NDC Nationally Determined Contribution
OM Operations and maintenance
OECD Organisation for Economic Co-operation and
Development
OTEC Ocean thermal energy conversion
PAYGo Pay-as-you-go
PJ Petajoule
PPA Power purchase agreement
PTC Production Tax Credit
PV Photovoltaic
RD Research and development
RED EU Renewable Energy Directive
RPS Renewable portfolio standard
SAF Sustainable aviation fuel
SDG Sustainable Development Goal
SHIP Solar heat for industrial processes
TCFD Task Force on Climate-Related Financial
Disclosures
TES Thermal energy storage
TFEC Total final energy consumption
TW/TWh Terawatt/Terawatt hour
UK United Kingdom
UN United Nations
US United States
USD United States dollar
VAT Value-added tax
235

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Banjarnegara, Central Java, Indonesia;
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PV-Thermal installation in Germany; © Consolar
Solare Energiesysteme
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page 140: © topten22photo; istock
page 141: Solar industrial heat plant in France; @ NewHeat
page 143: Solar industrial heat plant in Brazil; @Protarget
page 144:
Roof air collectors combined with a PV system in
Spain; @Solarwall Spain
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France

ENDNOTES · GLOBAL OVERVIEW
01
ENDNOTES
I
GLOBAL
OVERVIEW
GLOBAL OVERVIEW
1 See Power section endnote 60 for detailed references. Table 1
from various sources throughout this chapter and report. See
Policy chapter and Market and Industry Trends chapter for details.
2 The shares were 59% in 2019 and 68% in 2018. Estimated from
IRENA, Renewable Capacity Statistics 2022, (Abu Dhabi: 2022),
https://www.irena.org/publications/2022/Apr/Renewable-
Capacity-Statistics-2022. Table 2 from various sources
throughout this chapter and report. See Policy chapter and
Market and Industry Trends chapter for details.
3 See Power section in this chapter.
4 Renewable share of electricity in 2021 and 2020 from Ember,
Global Electricity Review, (London: 2022), https://ember-climate.
org/insights/research/global-electricity-review-2022/.
5 See Power section and Hydropower section in Market and Industry
trends for information on drought impacts. Figure 1 based on IEA,
“World Energy Balances 2021: Extended Energy Balances,” 2022,
https://www.iea.org/data-and-statistics/data-product/world-
energy-balances and varioussources in this report.
6 IEA, “Global Energy Review: CO2 Emissions in 2021,” 2022,
https://www.iea.org/topics/global-energy-review.; IEA, “Energy
Efficiency 2021 – Analysis,” IEA, accessed January 20, 2022,
https://www.iea.org/reports/energy-efficiency-2021. https://
iea.blob.core.windows.net/assets/c3086240-732b-4f6a-89d7-
db01be018f5e/GlobalEnergyReviewCO2Emissionsin2021.pdf
7 IEA, “Coal Power’s Sharp Rebound Is Taking It to a New Record
in 2021, Threatening Net Zero Goals - News,” December 17, 2021,
https://www.iea.org/news/coal-power-s-sharp-rebound-is-
taking-it-to-a-new-record-in-2021-threatening-net-zero-goals.
8 C. Fernández Alvarez and G. Molnar, “What Is behind Soaring Energy
Prices and What Happens next? – Analysis,” IEA, October 12, 2021,
https://www.iea.org/commentaries/what-is-behind-soaring-energy-
prices-and-what-happens-next. See Power section.
9 Ibid.
10 https://www.iea.org/commentaries/what-is-behind-soaring-
energy-prices-and-what-happens-next; T. Gillespie, J. Starn, and
Isis Almeida, “Europe’s Power Crunch Shuts Down Factories as
Prices Hit Record,” Bloomberg, December 22, 2021, https://www.
bloomberg.com/news/articles/2021-12-22/european-power-
surges-to-record-as-france-faces-winter-crunch. U.S. Energy
Information Administration, “Wholesale Electricity Prices Trended
Higher in 2021 Due to Increasing Natural Gas Prices,” January 7,
2022, https://www.eia.gov/todayinenergy/detail.php?id=50798.
11 G. Sgaravatti, S. Tagliapietra, and G. Zachmann, “National Policies
to Shield Consumers from Rising Energy Prices | Bruegel,” 2022,
https://www.bruegel.org/publications/datasets/national-policies-
to-shield-consumers-from-rising-energy-prices/. euronews,
“Energy Crisis: France to Freeze Natural Gas and Electricity
Prices,” euronews, October 1, 2021, https://www.euronews.
com/2021/10/01/europe-s-energy-crisis-france-to-freeze-natural-
gas-and-electricity-prices.
12 Sidebar 1 from the following sources: Eurostat, Energy
Statistics – an Overview, Energy Dependency, Eurostat, “Energy
Statistics – an Overview, Energy Dependency,” March 15,
2022, https://ec.europa.eu/eurostat/statistics-explained/index.
php?oldid=528416#Energy_dependency. Eurostat, Energy
Statistics Explained EU imports of energy products - recent
developments. Eurostat, “Energy Statistics Explained EU Imports
of Energy Products,” March 15, 2022, https://ec.europa.eu/
eurostat/statistics-explained/index.php?title=EU_imports_of_
energy_products_-_recent_developments#Main_suppliers_of_
natural_gas_and_petroleum_oils_to_the_EU. T. Helm, “Tories
Plan Big Expansion of Wind Farms ‘to Protect National Security,’”
The Guardian, March 13, 2022, https://www.theguardian.com/
environment/2022/mar/13/tories-plan-big-expansion-of-wind-
farms-to-protect-national-security. See for example Macrotrends:
MacroTrends, “Crude Oil Prices - 70 Year Historical Chart,”
accessed April 22, 2022, https://www.macrotrends.net/1369/
crude-oil-price-history-chart; IEA, “Natural Gas Prices in Europe,
Asia and the United States,” May 20, 2022, https://www.iea.org/
data-and-statistics/charts/natural-gas-prices-in-europe-asia-
and-the-united-states-jan-2020-february-2022?msclkid=216fe5
7dc16b11ec9c745f3a3cc7f842. Gas prices are fluctuating between
25 and 40 USD/MBTU in 2022 (with a peak of USD 60/ MBTU).
See for example Markets Insider, Coal Prices:Markets Insider,
“Coal Price Today,” accessed April 22, 2022, https://markets.
businessinsider.com/commodities/coal-price. IEA, Key World
Energy Statistics, based on Natural Gas Information 2021 and
IEA World Energy Statistics 2021. IEA Countries And Regions,
China, IEA, “China - Countries Regions,” accessed March 15,
2022, https://www.iea.org/countries/China. European Battery
Alliance, “Building a European Battery Industry,” accessed
June 2, 2022, https://www.eba250.com/. G. Trompiz and G.
Guillaume, “Europe’s EV Battery Strategy Threatened by Supply
Chain Gaps, Eramet Says,” Reuters, October 29, 2021, https://
www.reuters.com/technology/europes-ev-battery-strategy-
threatened-by-supply-chain-gaps-eramet-says-2021-10-29/. S.
Rai-Roche, “European Solar Developers Call for Solar Supply
Chain Strategy, Target 20GW of Manufacturing Capacity by
2030,” PV Tech, January 27, 2022, https://www.pv-tech.org/
european-solar-developers-call-for-solar-supply-chain-strategy-
target-20gw-of-manufacturing-capacity-by-2030/. European
Commission, Communication form the Commission to the
European Parliament, the European Council, the Council, the
European Economic and Social Committee and the Committee
if the Regions, REPowerEU: Joint European Action for more
affordable, secure and sustainable energy, 8 March 2022, EUR-
Lex Europa, “EUR-Lex - Document: 52022DC0108,” accessed
June 2, 2022, https://eur-lex.europa.eu/legal-content/EN/
TXT/?uri=COM%3A2022%3A108%3AFIN. Reuters, Germany
aims to get 100% of energy from renewable sources by 2035, 28
February 2022. La Moncloa, “The Government of Spain Approves
the National Response Plan for the Consequences of the War in
Ukraine,” March 29, 2022, https://www.lamoncloa.gob.es/lang/
en/gobierno/councilministers/Paginas/2022/20220329_council.
aspx. Reuters, Japan to speed up off-shore wind efforts in
wake if Ukraine crisis, March 18, 2022, Reuters, “Japan to
Speed Up Offshore Wind Efforts in Wake Of,” March 18, 2022,
https://www.oedigital.com/news/495132-japan-to-speed-up-
offshore-wind-efforts-in-wake-of-ukraine-crisis. NPR, “China
Promotes Coal in Setback for Efforts to Cut Emissions,” April
25, 2022, https://www.npr.org/2022/04/25/1094586702/china-
promotes-coal-in-setback-for-efforts-to-cut-emissions?t=16
53419121118t=1654179126035.EIA, “EIA Expects U.S. Fossil
Fuel Production to Reach New Highs in 2023,” January 21, 2022,
https://www.eia.gov/todayinenergy/detail.php?id=50978.
13 Net Zero Tracker, “Post-COP26 Snapshot,” Net Zero Tracker,
accessed January 19, 2022, https://zerotracker.net/analysis/
post-cop26-snapshot.
14 Ibid.
15 European Commission. “REPowerEU Plan,” May 18, 2022.
https://eur-lex.europa.eu/resource.html?uri=cellar:fc930f14-d7ae-
11ec-a95f-01aa75ed71a1.0001.02/DOC_1format=PDF.
16 Carbon Brief, “COP26: Key Outcomes Agreed at the UN Climate
Talks in Glasgow,” November 15, 2021, https://www.carbonbrief.org/
cop26-key-outcomes-agreed-at-the-un-climate-talks-in-glasgow.
17 COP26, “COP26 Presidency Outcomes The Climate Pact,” UN
Climate Change Conference (COP26) at the SEC – Glasgow 2021,
November 2021, https://ukcop26.org/wp-content/uploads/2021/11/
COP26-Presidency-Outcomes-The-Climate-Pact.pdf.
18 Carbon Brief, “COP26: Key Outcomes Agreed at the UN Climate
Talks in Glasgow,” 26.
19 Harvey, Fiona, Jillian Ambrose, and Patrick Greenfield. “More
than 40 Countries Agree to Phase out Coal-Fired Power.”
The Guardian, November 3, 2021, https://www.theguardian.
com/environment/2021/nov/03/more-than-40-countries-
agree-to-phase-out-coal-fired-power. Global Energy Monitor,
“Global Ownership of Coal Plants,” Projects | Global Coal Plant
Tracker | Summary Tables, accessed February 18, 2022, https://
globalenergymonitor.org/projects/global-coal-plant-tracker/
summary-tables/.
20 United Nations. “UN Secretary-General Issues Roadmap for
Clean Energy for All by 2030 | Department of Economic and
Social Affairs.” Accessed June 10, 2022. https://sdgs.un.org/
news/un-secretary-general-issues-roadmap-clean-energy-
all-2030-33361.
21 European Commission, “Questions and Answers on the EU
Taxonomy Complementary Climate Delegated Act Covering
Certain Nuclear and Gas Activities,” Text, Questions and Answers,
February 2, 2022, https://ec.europa.eu/commission/presscorner/
detail/en/QANDA_22_712.
22 See Investment Flows chapter.
238
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OVERVIEW
23 European Commission, “Carbon Border Adjustment Mechanism,”
Text, European Commission - European Commission, July 14,
2021, https://ec.europa.eu/commission/presscorner/detail/en/
qanda_21_3661.
24 M. Coffin and A. Dalman, “Adapt to Survive: Why Oil Companies
Must Plan for Net Zero and Avoid Stranded Assets,” Carbon
Tracker Initiative, September 9, 2021, https://carbontracker.org/
reports/adapt-to-survive/. See Investment Chapter.
25 European Commission, “Emissions Trading – Putting a Price
on Carbon,” Text, Questions and answers, July 14, 2021, https://
ec.europa.eu/commission/presscorner/detail/en/qanda_21_3542;
Euractiv, “EU Carbon Price Could Hit €100 by Year End after Record
Run - Analysts,” www.euractiv.com, December 8, 2021, https://www.
euractiv.com/section/emissions-trading-scheme/news/eu-carbon-
price-could-hit-e100-by-year-end-after-record-run-analysts/.
26 Emissions-EUETS, “Emissions Trading for Road Transport and
Buildings,” November 23, 2021, https://www.emissions-euets.
com/carbon-market-glossary/2168-emissions-trading-for-road-
transport-and-buildings; European Commission, “Emissions
Trading – Putting a Price on Carbon.”
27 International Carbon Action Partnership (ICAP), “China National
ETS,” November 17, 2021, https://icapcarbonaction.com/en/?
option=com_etsmaptask=exportformat=pdflayout=list
systems%5B%5D=55; R. Roldao, “Carbon Trading the Chinese
Way,” Energy Monitor, January 5, 2022, https://www.energymonitor.ai/
policy/carbon-markets/carbon-trading-the-chinese-way.
28 Net Zero Tracker, “Post-COP26 Snapshot.”
29 Net Zero Tracker, “Post-COP26 Snapshot.”
30 See Policy chapter for details.
31 J. Bacchus, “Oil Firms Face More Legal Fights on Climate Change
- Here’s Why,” World Economic Forum, June 4, 2021, https://www.
weforum.org/agenda/2021/06/oil-shell-exxon-chevron-court-
shareholders-climate/; P. Duran, “Australia Court Gives CBA
Investor Confidential Records to Test Greenwashing Concerns,”
Reuters, November 11, 2021, https://www.reuters.com/article/
cba-climate-idCNL1N2S201Q.
32 S. Fussell, “The Push for Ad Agencies to Ditch Big Oil Clients,”
Wired, August 18, 2021, https://www.wired.com/story/push-ad-
agencies-ditch-big-oil-clients/. Box 1 from the following sources:
Clean Creatives, “Clean Creatives,” accessed April 7, 2022,
https://cleancreatives.org; S. Fussell, “The Push for Ad Agencies
to Ditch Big Oil Clients,” Wired, August 18, 2021, https://www.
wired.com/story/push-ad-agencies-ditch-big-oil-clients; H.
Talbot, “Amsterdam to Become First City in the World to Ban This
Type of Advert,” Euronews, May 20, 2021, https://www.euronews.
com/green/2021/05/20/amsterdam-becomes-first-city-in-the-
world-to-ban-this-type-of-advert; M. O’Connor, “Clean Creatives
Fossil-Fuel Industry Boycott,” Avocado Green® Magazine,
October 27, 2021, https://magazine.avocadogreenmattress.
com/clean-creatives-boycotting-fossil-fuel-industry; S.
Fussell, “AI Shows ExxonMobil Downplayed Its Role in Climate
Change,” Wired, May 13, 2021, https://www.wired.com/story/
ai-shows-exxonmobil-downplayed-role-climate-change.
33 Selected countries include more than 80 of some of the world’s
largest energy-consuming countries. Calculations were carried
out by REN21 by developing a Python-based analytical tool
that processed raw country-level data from based on data from
IEA, “World Energy Balances 2021: Extended Energy Balances,”
2022, https://www.iea.org/data-and-statistics/data-product/
world-energy-balances. Additional 2020 data inputs from IEA,
World Energy Outlook 2021, (Paris: 2022), https://www.iea.org/
reports/world-energy-outlook-2021. Inputs related to renewable
electricity for heat from IEA, March and April 2022, personal
communication with REN21. See methodological notes for full
details on calculations.
34 Figure 2 from Ibid.
35 Ibid.
36 IEA, op. cit. note 33. Solar thermal data from W. Weiss and M.
Spörk-Dür, Solar Heat Worldwide 2022, forthcoming 2022.
37 Ibid.
38 Ibid.
39 Ibid.
40 Ibid.
41 IEA, “Net Zero by 2050,” May 17, 2021, https://www.iea.org/
reports/net-zero-by-2050.
42 According to IEA’s Global Commission on Energy Efficiency from
IEA, “Energy Efficiency 2021 – Analysis.”
43 In 2020, explicit subsidies totaled more than USD 454 billion,
while explicit and implicit subsidies totaled more than USD
5,857 billion around height times higher than the allocated
support to renewables in the OECD and partner countries.
OECD, “Key Findings from the Update of the OECD Green
Recovery Database,” OECD Policy Responses to Coronavirus
(COVID-19), September 30, 2021, https://www.oecd.org/
coronavirus/policy-responses/key-findings-from-the-
update-of-the-oecd-green-recovery-database-55b8abba/;
D. Carrington, “Fossil Fuel Industry Gets Subsidies of
$11m a Minute, IMF Finds,” The Guardian, October 6, 2021,
https://www.theguardian.com/environment/2021/oct/06/
fossil-fuel-industry-subsidies-of-11m-dollars-a-minute-imf-finds.
44 I. Parry, S. Black, and N. Vernon, “Still Not Getting Energy Prices
Right: A Global and Country Update of Fossil Fuel Subsidies,”
IMF, September 24, 2021, https://www.imf.org/en/Publications/
WP/Issues/2021/09/23/Still-Not-Getting-Energy-Prices-Right-A-
Global-and-Country-Update-of-Fossil-Fuel-Subsidies-466004.
45 IRENA, “Energy Subsidies: Evolution in the Global Energy
Transformation to 2050,” Publications, April 2020, https://www.
irena.org/publications/2020/Apr/Energy-Subsidies-2020.
46 Written Balasubramanian Viswanathan et al., “Mapping India’s
Energy Subsidies 2021,” IISD, July 14, 2021, 94, https://www.iisd.
org/publications/mapping-india-energy-subsidies-2021.
47 N. Ferris, “Investment in Skills Is Key to Realising the Clean
Energy Transition,” Energy Monitor (blog), April 30, 2021, https://
www.energymonitor.ai/policy/just-transition/investment-in-skills-
is-key-to-realising-the-clean-energy-transition.
48 Ibid.
49 E. Penrod, “Unlocking the Transition: Politicians Tout Renewable
Energy Jobs for Ex-Fossil Fuel Workers, but It’s Not so Simple,”
Utility Dive, November 5, 2021, https://www.utilitydive.com/news/
unlocking-the-transition-politicians-tout-renewable-energy-
jobs-for-ex-fos/609335/; Ferris, “Investment in Skills Is Key to
Realising the Clean Energy Transition.”
50 Sidebar 2 from Ferris, “Investment in Skills Is Key to Realising
the Clean Energy Transition”; GFSE, “Green Skills for the Youth
Policy Brief,” 2021, https://www.gfse.at/fileadmin/user_upload/
gfse_policy_brief_green_skills_v3.pdf.
51 Calculations based on IEA, op. cit. note 33 (all sources). See
methodological notes.
52 Ibid.
53 Ibid.
54 Ibid.
55 Figure 3 based on IEA, op. cit. note 33 (all sources).
56 Ibid.
57 Figure 4 based on IEA, op. cit. note 33 (all sources).
58 Based on sources throughout this chapter and on
IRENA, “Renewable Capacity Statistics 2022,” April
2022, https://www.irena.org/publications/2022/Apr/
Renewable-Capacity-Statistics-2022.
59 Based on sources throughout this chapter and on IEA, “What is
the impact of increasing commodity and energy prices on solar
PV, wind and biofuels?”, 1 December 2021, https://www.iea.org/
articles/what-is-the-impact-of-increasing-commodity-and-
energy-prices-on-solar-pv-wind-and-biofuels.
60 Additions of 314.4 GW consisted of 175.0 GW solar PV, 102.0
GW wind power (gross additions), 26.7 GW hydropower, 10.3
GW biopower, 0.4 GW geothermal power and a net decline
of CSP capacity of 0.1 GW. Hydropower data from IHA, 2022
Hydropower Status Report (London: 2022 forthcoming) and
personal communication with REN21, May 2022. See sources in
Hydropower section of Market and Industry chapter; Wind power
data from GWEC, Global Wind Report 2022 (London: 2022),
https://gwec.net/global-wind-report-2022/ and gross additions
from sources in Wind Power section in Market and Industry
chapter; Solar PV data collected in direct current and from IEA
Photovoltaic Power Systems Programme (PVPS), Snapshot of
Global Photovoltaic Markets 2022, (Paris: 2022), https://iea-pvps.
org/snapshot-reports/snapshot-2022/; Bio-power from IRENA,
Renewable Capacity Statistics 2022, op. cit. note 58. Geothermal
from the following sources: power capacity data for Iceland,
Japan and New Zealand from International Energy Agency (IEA)
239
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OVERVIEW
Geothermal, “Country Reports,” 2021 2020, https://iea-gia.org/
about-us/members. and from sources noted elsewhere in this
section; power capacity data for Chile, Indonesia, the Philippines,
Turkey and the United States from sources noted elsewhere in
this section; capacity data for other countries from International
Renewable Energy Agency (IRENA), Renewable Capacity Statistics
2022, April 2022, https://www.irena.org/publications/2022/Apr/
Renewable-Capacity-Statistics-2022. CSP capacity was limited
to 14 countries; for data and references, see CSP section of
Market and Industry chapter. Ocean power capacity was minor
worldwide. See sources in Ocean Power section in Market and
Industry chapter. Figure 5 from all sources in this note.
61 Total capacity of 3,146 comprised of 1195 GW hydropower,
942 GWdc solar PV, 845 GW wind power, 143 GW biopower,
14.5 GW geothermal power, 6.0 GW CSP and 0.5 GW ocean
power. Total capacity and growth based on sources in
endnote 60, on data provided throughout this report and on
data from past GSRs. See Market and Industry chapter, related
endnotes for sources and details.
62 IEA, “Net Zero by 2050 – A Roadmap for the Global Energy
Sector,” May 2021. IRENA, World Energy Transitions Outlook
2021, (Abu Dhabi: 2021), https://irena.org/publications/2021/Jun/
World-Energy-Transitions-Outlook. Figure 6 from sources in
endnote 60 and IEA and IRENA, op. cit. this note.
63 Figure 7 from sources in endnote 60 and non-renewable capacity
statistics from IRENA, Capacity Statistics flat file, personal
communication with REN21, May 2022.
64 Based on capacity additions reported in endnote 60.
66 Based on capacity additions reported in endnote 60. GWEC, op. cit.
note 60. See Wind Power section in Market and Industry chapter.
67 IHA, op. cit. note 60.
69 Based on capacity additions reported in endnote 60. See CSP
section in Market and Industry chapter.
70 At end-2021, China’s total installed capacity comprised 355 GW
hydropower, 338 GW wind power, 309 GW solar PV, 30 GW
biopower, 0.6 GW CSP for around 1,032 GW (1.03 Terawatts) total.
Based on technology sources throughout this report.
71 Based on data reported in endnote 60.
72 Ibid.
73 Ibid.
74 Based on data reported in endnote 60 and national sources
for the following countries: Germany from AGEE Stat, “Time
Series for the Development of Renewable Energy Sources in
Germany,” 2021, Informationsportal Erneuerbare Energien,
“Zeitreihen Erneuerbare Energien,” February 2022, https://
www.erneuerbare-energien.de/EE/Navigation/DE/Service/
Erneuerbare_Energien_in_Zahlen/Zeitreihen/zeitreihen.html;
United States from U.S. Energy Information Administration,
“Electric Power Monthly,” 2022, https://www.eia.gov/electricity/
monthly/epm_table_grapher.php.
75 Ibid.
76 40 countries in 2021 based on data reported in endnote
60. 24 countries in 2011 based on International Renewable
Energy Agency (IRENA), Renewable Capacity Statistics 2022,
April 2022, https://www.irena.org/publications/2022/Apr/
77 22 countries in 2021 based on data reported in endnote
60. 9 countries in 2011 based on International Renewable
Energy Agency (IRENA), Renewable Capacity Statistics 2022,
April 2022, https://www.irena.org/publications/2022/Apr/
78 Ranking for top countries per capita for based on sources
throughout this chapter and population data from World Bank,
“Population, Total,” accessed April, 2022, https://data.worldbank.
org/indicator/SP.POP.TOTL. Table 2 from sources in endnote 60
and throughout this report.
79 See Sidebar 6. Michael Taylor, IRENA, personal communication
with REN21, 25 May 2022. IRENA, Renewable Power Generating
Costs in 2021, {Abu Dhabi, Forthcoming 2022).
80 Ibid. K. Bond, “Reality Check: The Green Inflation Myth,” RMI
(blog), February 16, 2022, https://rmi.org/reality-check-the-
green-inflation-myth/. See Sidebar 6.
81 See Wind Power section. F. Zhao, GWEC, personal
communication with REN21, 25 May 2022. IEA, “What is the
impact of increasing commodity and energy prices on solar PV,
wind and biofuels?”, 1 December 2021, https://www.iea.org/
articles/what-is-the-impact-of-increasing-commodity-and-
energy-prices-on-solar-pv-wind-and-biofuels.
82 K. Clark, “Renewable PPA Prices Continue to Climb as Supply
Tightens,” Renewable Energy World, January 13, 2022, https://
www.renewableenergyworld.com/issues/renewable-ppa-
prices-continue-to-climb-as-supply-tightens/.; “Why Supply
Chain Disruptions May Slow down Clean Energy Deployments
| Greenbiz,” March 17, 2022, https://www.greenbiz.com/article/
why-supply-chain-disruptions-may-slow-down-clean-energy-
deployments; “European Energy Crisis Causing ‘Fundamental
Changes’ to PPA Market, Longevity of 10-Year Contracts in
Question,” PV Tech (blog), February 10, 2022, https://www.pv-tech.
org/european-energy-crisis-causing-fundamental-changes-to-
ppa-market-longevity-of-10-year-contracts-in-question/.
83 See Sidebar 6. Information in this paragraph from M. Taylor,
IRENA, personal communication with REN21, May 2022 and F.
Zhao, GWEC, personal communication with REN21, May 2022.
84 Luxembourg Times, “ArcelorMittal Stung as Electricity Prices
Soar,” Luxembourg Times, March 10, 2022, https://www.luxtimes.
lu/en/business-finance/arcelormittal-stung-as-electricity-
prices-soar-622a3106de135b9236890fc5. Bloomberg, “Steel
Plants Across Europe Cut Production as Power Prices Soar
- Bloomberg,” September 3, 2022, https://www.bloomberg.com/
news/articles/2022-03-09/spanish-steel-production-curbed-
as-power-costs-soar-to-a-record. M. Sweney, “Energy Bills
Could Rise by 50% amid ‘National Crisis’ of Soaring UK Prices,”
The Guardian, December 23, 2021, sec. Business, https://www.
theguardian.com/business/2021/dec/23/energy-bills-could-rise-
by-50-amid-national-crisis-of-soaring-uk-prices. See Sidebar 1.
85 E. Bellini, “Rising Gas, Electricity Prices Create New Opportunities
for Short-Term PPAs in Europe,” pv magazine International,
March 13, 2022, https://www.pv-magazine.com/2021/09/08/
rising-gas-electricity-prices-create-new-opportunities-for-short-
term-ppas-in-europe/. Reuters, “Investments in Renewables Will
Stabilise Energy Prices -EU Commissioner,” Reuters, September
17, 2021, sec. Sustainable Business, https://www.reuters.com/
business/sustainable-business/investments-renewables-will-
stabilise-energy-prices-eu-commissioner-2021-09-17/.Enel,
“How Renewables Will Stabilize Energy Prices,” June 10, 2021,
https://www.enel.com/company/stories/articles/2021/10/
renewables-stabilize-energy-prices.
86 La Moncloa, “The Government of Spain Approves the National
Response Plan for the Consequences of the War in Ukraine,”
March 29, 2022, https://www.lamoncloa.gob.es/lang/en/
gobierno/councilministers/Paginas/2022/20220329_council.
aspx.
87 See Policy chapter.
88 See Policy chapter. Snapshot Egypt from personal
communication with Maged K. Mahmoud, Regional Center for
Renewable Energy and Energy Efficiency (RCREEE).
90 IEA, “Renewables 2021 – Analysis,” IEA, accessed March 10, 2022,
https://www.iea.org/reports/renewables-2021.
93 BloombergNEF, “Corporate Clean Energy Buying Tops 30 GW
Mark in Record Year,” BloombergNEF (blog), January 31, 2022,
https://about.bnef.com/blog/corporate-clean-energy-buying-
tops-30gw-mark-in-record-year/.
94 Ibid.
95 Ibid.
96 RE100, “Stepping Up: RE100 Gathers Speed in Challenging
Markets,” RE100, 2022, https://www.there100.org/
stepping-re100-gathers-speed-challenging-markets.
97 Smart Electric Power Alliance, “Utility Carbon-Reduction
TrackerTM
,” SEPA, 2021, https://sepapower.org/
utility-transformation-challenge/utility-carbon-reduction-tracker/.
98 K. Adler, “Net-Zero Pledges by US Utilities Spotlight Different
Timelines, Benchmarks,” IHS Markit, May 19, 2021, https://
cleanenergynews.ihsmarkit.com/research-analysis/netzero-
pledges-by-us-utilities-spotlight-different-timelines-.html.
240
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OVERVIEW
99 Ember and Europe Beyond Coal, “Limited Utility: The European
Energy Companies Failing on Net Zero Commitments,” January
2022, https://ember-climate.org/wp-content/uploads/2022/01/
Limited-Utility.pdf.
100 B. Lee, “Chinese State-Owned Energy Companies Fast-Track
Peak Carbon Emissions Plans,” IHS Markit, April 21, 2021, https://
cleanenergynews.ihsmarkit.com/research-analysis/chinese-
stateowned-energy-companies-fasttrack-peak-carbon-emis.html;
E. Yep and I. Yin, “China’s Big 5 Power Producers Face Uphill
Battle in Meeting Peak Emissions Targets,” June 7, 2021, https://
www.spglobal.com/commodity-insights/en/market-insights/
latest-news/coal/060721-chinas-big-5-power-producers-face-
uphill-battle-in-meeting-peak-emissions-targets.;X. Chen, A.
Zhang, and G. Yang, “Electricity Giant Huadian Powers Up
New-Energy Unit - Caixin Global,” May 6, 2021, https://www.
caixinglobal.com/2021-07-05/electricity-giant-huadian-powers-
up-new-energy-unit-101736218.html.
101 Based on IEA, “World Energy Balances”, op. cit. note 33.
102 Ibid.
103 Ibid.
104 IRENA, “Smart Electrification with Renewables: Driving
the Transformation of Energy Services,” February
2022, https://www.irena.org/publications/2022/Feb/
Smart-Electrification-with-Renewables.
105 IRENA, “Smart Electrification with Renewables: Driving the
Transformation of Energy Services,” February 2022, https://
www.irena.org/publications/2022/Feb/Smart-Electrification-
with-Renewables; World Bank, “World Bank Open Data,” Data,
accessed March 16, 2022, https://data.worldbank.org/.
106 Share of generation in 2021 based on estimated total global
electricity generation of 27,521 TWh and total renewable
generation of 7,793 TWh, from Ember, Global Electricity Review
2022, (London: 2022), https://ember-climate.org/insights/
research/global-electricity-review-2022/. Global totals for 2021
were estimated by summing total electricity generation and
electricity generation per energy source in 75 countries where
2021 national sources (including official government data and
utility data) were available, comprising 93% of global generation.
See Methodology from Ember, “Global Electricity Review 2022,”
accessed June 3, 2022, https://ember-climate.org/insights/
research/global-electricity-review-2022/.
107 Ember, “Global Electricity Review 2022,” accessed June
3, 2022, https://ember-climate.org/insights/research/
global-electricity-review-2022/.
108 Denmark: Share of net generation based on net generation data
of 16.054 TWh from wind power, 1.109 TWh from solar PV, and
total net production of 31.873 TWh, from Danish Energy Agency,
“Månedlig elstatistik. Oversigtstabeller,” Electricity Supply,
Energistyrelsen, “Annual and Monthly Statistics,” accessed
April 27, 2022, https://ens.dk/en/our-services/statistics-data-
key-figures-and-energy-maps/annual-and-monthly-statistics.
Uruguay: Preliminary 2021 data: wind generation of 4.99 TWh,
solar generation of 0.56 TWh, and total of 16.0 TWh, from
Ministerio de Industria, Energía y Minería, “Balance Preliminar
2021,” accessed June 3, 2022, https://ben.miem.gub.uy/preliminar.
php. Spain: Red Eléctrica de España (REE), “The Spanish
Electricity System – Preliminary Report 2021,” January 2022,
https://www.ree.es/sites/default/files/publication/2022/04/
downloadable/avance_ISE_2021_EN.pdf. Portugal: Ember, op.
cit. note 106. Ireland: Share of wind generation is 9.5 TWh from
the total energy generation of 29.5 TWh, based on provisional
2021 data from EirGrid, “System Renewable Summary Report,”
https://www.eirgridgroup.com/site-files/library/EirGrid/
System-and-Renewable-Data-Summary-Report.xlsx, accessed
April 2022. Germany: Federal Ministry for Economic Affairs
and Climate Action (BMWK) and AGEE Stat, “Time Series for
the Development of Renewable Energy Sources in Germany,”
2021, Informationsportal Erneuerbare Energien, “Zeitreihen
Erneuerbare Energien,” February 2022, https://www.erneuerbare-
energien.de/EE/Navigation/DE/Service/Erneuerbare_Energien_
in_Zahlen/Zeitreihen/zeitreihen.html. Greece: Wind production
of 10.503 TWh and total of 41.985 TWh, from Dapeep, “Monthly
Bulletin of the RES RES Special Account CHP,” 2021, https://
www.dapeep.gr/dimosieuseis/sinoptiko-pliroforiako-deltio-
ape/#1615465956484-e92eda57-f80d. United Kingdom:
Department for Business, Energy Industrial Strategy, “Fuel
Used in Electricity Generation and Electricity Supplied,” March
2022, https://assets.publishing.service.gov.uk/government/
uploads/system/uploads/attachment_data/file/972781/ET_5.1_
MAR_22.xls. Australia: About OpenNEM, “An Open Platform
for National Electricity Market Data,” accessed May 2, 2022,
https://opennem.org.au/about/. Chile: Generadoras de Chile,
“Generación Eléctrica En Chile,” accessed April 2, 2022, http://
generadoras.cl/generacion-electrica-en-chile.
109 IEA, “Electricity Market Report - January 2022,” January 2022,
https://iea.blob.core.windows.net/assets/d75d928b-9448-4c9b-
b13d-6a92145af5a3/ElectricityMarketReport_January2022.pdf.
110 Ibid.
111 Ember, op. cit. note 106.
112 IEA, “Renewables 2021 - Analysis and Forecast to 2026,” 2021,
www.iea.org/renewables.; Bernstein, Spring, and Stanway,
“Droughts Shrink Hydropower, Pose Risk to Global Push to
Clean Energy.”; Peter Millard and Mark Chediak, “Global Energy
Crisis Comes to Drought-Stricken South America,” Bloomberg.
Com, October 3, 2021, https://www.bloomberg.com/news/
articles/2021-10-03/global-energy-crisis-comes-to-drought-
stricken-south-america.; Reuters, “Brazil Minister Warns of
Deeper Energy Crisis amid Worsening Drought,” Reuters,
September 1, 2021, sec. Americas, https://www.reuters.com/
world/americas/brazil-minister-warns-deeper-energy-crisis-
amid-worsening-drought-2021-08-31/.; S. Bernstein, J. Spring,
and D. Stanway, “Droughts Shrink Hydropower, Pose Risk to
Global Push to Clean Energy,” Reuters, August 14, 2021, https://
www.reuters.com/business/sustainable-business/inconvenient-
truth-droughts-shrink-hydropower-pose-risk-global-push-clean-
energy-2021-08-13/; A. Musselman, “The Electricity Is Melting,”
Sierra Club, September 1, 2021, https://www.sierraclub.org/sierra/
electricity-melting-hydropower-climate%20change.
113 Deign, “Renewable Energy in the Time of Floods, Droughts
and Hurricanes.”;S. Wright, “New Zealand’s Renewable-Energy
Dreams Get a Reality Check,” Wall Street Journal, August 4, 2021,
https://www.wsj.com/articles/new-zealands-renewable-energy-
dreams-get-a-reality-check-11628082000.
114 Ember, “European Electricity Review 2022,” February 1, 2022, https://
ember-climate.org/insights/research/european-electricity-review-2022/.
115 Ember, “European Electricity Review 2022,” February 1, 2022, https://
ember-climate.org/insights/research/european-electricity-review-2022/.
116 UK Department for Business, Energy and Industrial Strategy,
“Energy Trends: UK Renewables,” 2022, https://www.gov.uk/
government/statistics/energy-trends-section-6-renewables.
117 U.S. Energy Information Administration, “Electric Power Monthly,”
2022, https://www.eia.gov/electricity/monthly/epm_table_
grapher.php.
118 Ibid.
119 China Energy Portal, “2021 Electricity Other
Energy Statistics (Preliminary),” China Energy
Portal, January 27, 2022, https://chinaenergyportal.
org/2021-electricity-other-energy-statistics-preliminary/.
120 Ibid.
121 A. Durakovic, “BREAKING: China Connects 16.9 GW of Offshore
Wind Capacity to Grid in 2021,” Offshore Wind, January 25, 2022,
https://www.offshorewind.biz/2022/01/25/breaking-china-connects-
16-9-gw-of-offshore-wind-capacity-to-grid-in-2021/; T. Nguyen,
“2021 Remains Gap Year for Solar Developers,” Vietnam Investment
Review - VIR, December 28, 2021, https://vir.com.vn/2021-remains-
gap-year-for-solar-developers-90278.html. See Wind Power and
Solar PV sections in Market and Industry Trends chapter.
122 WindEurope, “Europe’s Building Only Half the Wind Energy
It Needs for the Green Deal, Supply Chain Is Struggling as a
Result,” WindEurope, February 24, 2022, https://windeurope.org/
newsroom/press-releases/europes-building-only-half-the-wind-
energy-it-needs-for-the-green-deal-supply-chain-is-struggling-
as-a-result/; WindEurope, “Wind Energy in Europe 2021,”
February 2022, https://windeurope.org/intelligence-platform/
product/wind-energy-in-europe-2021-statistics-and-the-outlook-
for-2022-2026/.; B. Radowitz, “‘Some Streamlining in US Offshore
Wind Permitting Will Be Useful’: Engie Chief | Recharge,”
Recharge | Latest renewable energy news, June 18, 2020, https://
www.rechargenews.com/wind/-some-streamlining-in-us-
offshore-wind-permitting-will-be-useful-engie-chief/2-1-828996;
E. F. Gannon, J. D. Skees, and S. D. Clausen, “U.S. Offshore Wind
Is under Sail, but Challenges Remain,” Reuters, September 30,
2021, https://www.reuters.com/legal/legalindustry/us-offshore-
241
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wind-is-under-sail-challenges-remain-2021-09-30/. See Wind
Power and Solar PV sections in Market and Industry Trends
chapter.
123 European Commission, “REPowerEU,” Text, European
Commission - European Commission, 2022, https://ec.europa.eu/
commission/presscorner/detail/en/IP_22_3131.
124 WindEurope, “Wind Energy in Europe 2021.”;IEA, “Renewables
2021 – Analysis and Forecast to 2026.”;Clyde Co, “Gridlock in
Australia – Will the Renewables Projects Find a Workaround?,”
June 30, 2021, https://www.clydeco.com/insights/2021/06/
gridlock-in-australia-will-the-renewables-projects. See Energfy
Systems chapter.
125 IEA, “The Role of Critical Minerals in Clean Energy Transitions
– Analysis,” IEA, May 2021, https://www.iea.org/reports/the-role-
of-critical-minerals-in-clean-energy-transitions; Dolf Gielen and
IRENA, “Critical Materials for the Energy Transition,” n.d., 43.
126 N. Ferris, “The Quest to Generate Zero-Impact Renewable
Power - Energy Monitor,” September 22, 2021, https://www.
energymonitor.ai/tech/renewables/the-quest-to-generate-
zero-impact-renewable-power; “Apple’s Uyghur Dilemma
Grows,” Tech Transparency Project, June 8, 2021, https://www.
techtransparencyproject.org/articles/apples-uyghur-dilemma-
grows; M. Owen, “Apple’s Chinese Wind Power Partner Linked to
Uyghur Forced Labor Programs,” AppleInsider, August 6, 2021,
https://appleinsider.com/articles/21/06/08/apples-chinese-wind-
power-partner-linked-to-uyghur-forced-labor-programs.
127 K. Skierka, “Ending Energy Poverty Is at Risk from a Skills Gap”,
World Economic Forum, October 31, 2018, https://www.weforum.org/
agenda/2018/10/skills-gap-jeopardizing-efforts-end-energy-poverty-
power-for-all/.
128 Based on IEA, “World Energy Balances 2021: Extended Energy
Balances,” 2022.
129 Ibid. Figure 8 from Ibid and sources throughout this chapter.
130 Ibid. IEA, Renewables 2021, (Paris: 2021), https://www.iea.org/
reports/renewables-2021.
131 Global Alliance for Buildings and Construction, “2021 Global
Status Report for Buildings and Construction,” 2021, https://
globalabc.org/resources/publications/2021-global-status-report-
buildings-and-construction.
132 IEA, “Tracking Buildings 2021 – Analysis,” IEA, accessed January
20, 2022, https://www.iea.org/reports/tracking-buildings-2021.
133 World Bank, International Energy Agency, International
Renewable Energy Agency, United Nations, and World Health
Organization, Tracking SDG7: The Energy Progress Report 2022,
(Washington: 2022), https://trackingsdg7.esmap.org/data/files/
download-documents/sdg7-report2022-full_report.pdf.Brynn
Furey, Johanna Neumann, and Bryn Huxley-Reicher, “Electric
Buildings 2021,” 2021, https://environmentamericacenter.org/
feature/amc/electric-buildings-2021. See previous GSRs.
134 IEA, “World Energy Balances 2021: Extended Energy Balances,”
2022.
135 GlobalABC, “2021 Global Status Report for Buildings and
Construction,” vol. 1, October 2021.
136 IEA, “Tracking Buildings 2021 – Analysis.”
137 GlobalABC, “2021 Global Status Report for Buildings and
Construction.”
Balances,” 2022.
139 Box 2 from the following sources: Service de la donnée et des
études statistiques, “Consommation d’énergie par usage du
résidentiel,” Données et études statistiques pour le changement
climatique, l’énergie, l’environnement, le logement et les
transports, 2022, https://www.statistiques.developpement-
durable.gouv.fr/consommation-denergie-par-usage-du-
residentiel; European Commission. Joint Research Centre.,
“Assessment of Heating and Cooling Related Chapters of the
National Energy and Climate Plans (NECPs).” (LU: Publications
Office, 2021), https://data.europa.eu/doi/10.2760/27251; Furey,
Neumann, and Huxley-Reicher, “Electric Buildings 2021.” IEA,
“World Energy Balances 2021: Extended Energy Balances,”
2022, https://www.iea.org/data-and-statistics/data-product/
world-energy-balances.
Balances,” 2022.
141 T. Abergel and C. Delmastro, “Is Cooling the Future of Heating?,”
December 13, 2020, https://www.iea.org/commentaries/
is-cooling-the-future-of-heating. IEA, “Cooling – Analysis,”
November 2021, https://www.iea.org/reports/cooling.
142 IRENA, IEA and REN21, Renewable Energy Policies in a Time of
Transition: Heating and Cooling, (Paris and Abu Dhabi: 2020),
https://www.ren21.net/wp-content/uploads/2019/05/IRENA_
IEA_REN21-Policies_HC_2020_Full_Report.pdf.
143 Ibid.
144 IEA, “Tracking Buildings 2021 – Analysis.”
145 Ibid.
Balances,” 2022 andGlobalABC, “2021 Global Status Report for
Buildings and Construction.”
Balances,” 2022. See Methodological Notes.
Balances,” 2022.
Balances,” 2022.
Balances,” 2022. IEA, World Energy Outlook 2021, (Paris: 2021),
https://www.iea.org/reports/world-energy-outlook-2021.
Balances,” 2022.
Balances,” 2022.
Balances,” 2022.
Balances,” 2022.
155 Ibid.
156 Ibid.
157 Eurostat, “Disaggregated final energy consumption in households
– quantities”, (Brussels: 2022), https://appsso.eurostat.ec.europa.
eu/nui/show.do?dataset=nrg_d_hhqlang=en; Eurostat, “Energy
Balances”, (Brussels: 2022), https://ec.europa.eu/eurostat/web/
energy/data/energy-balances.
158 Fundacion Bariloche, personal communication with REN21,
February 2022 and Resumen ejecutivo de usos de la energia de
los hogares Chile 2018, CDT, (Santiago dfe Chile, 2019), https://
www.energia.gob.cl/sites/default/files/documentos/resumen_
ejecutivo_caracterizacion_residencial_2018.pdf
Balances,” 2022.
Balances,” 2022.
161 Figure 9 based on IEA, “World Energy Balances 2021: Extended
Energy Balances,” 2022. See Methodological Notes.
Balances,” 2022.
163 IEA, “Energy Efficiency 2021,” November 2021, https://www.iea.
org/reports/energy-efficiency-2021.
164 Based on analysis of data on biomass heating in Eurostat,
“SHARES Database,” https://ec.europa.eu/eurostat/web/energy/
data/shares, accessed May 2, 2022.
165 See Bioenergy section in Market and Industry chapter.
166 W. Weiss and M. Spörk-Dür, Solar Heat Worldwide. Global
Market Development and Trends in 2021, Detailed Market Figures
2020, International Energy Agency (IEA) Solar Heating and
Cooling Programme (SHC), 2022, https://www.iea-shc.org/
solar-heat-worldwide.
167 See Solar Thermal Heating section in Market and Industry chapter.
168 See Solar Thermal Heating section in Market and Industry chapter.
169 See Geothermal Power and Heat section in Market and Industry
chapter.
170 IEA, “World Energy Balances 2021: Extended Energy Balances,” 2022.
171 “Largest Heat Pump District Heating Scheme Opens in Glasgow,”
Cooling Post, October 8, 2021, https://www.coolingpost.com/
uk-news/largest-heat-pump-district-heating-scheme-opens-
in-glasgow/; “Vienna to Use Excess Wind Power for District
242
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OVERVIEW
Heating,” Balkan Green Energy News, June 8, 2021, https://
balkangreenenergynews.com/vienna-to-use-excess-wind-
power-for-district-heating/; Igor Todorović, “Renewables Get
Increasing Role in District Heating in Serbia,” Balkan Green
Energy News, April 12, 2021, https://balkangreenenergynews.
com/renewables-get-increasing-role-in-district-heating-
in-serbia/.;Think GeoEnergy, “Danish Aarhus Announces
Large Geothermal District Heating Project,” January 14, 2022,
https://www.thinkgeoenergy.com/danish-aarhus-announces-
large-geothermal-district-heating-project/; Energiwatch,
“Vestforbrænding fremskynder fjernvarme til 6 milliarder,” 2022,
https://energiwatch.dk/Energinyt/Cleantech/article13854227.
ece?utm_source=twitterutm_content=article_share_
sticky_twitter; “Tuzla Plans to Decarbonize Its District Heating
System,” Balkan Green Energy News, October 19, 2021, https://
balkangreenenergynews.com/tuzla-plans-to-decarbonize-its-
district-heating-system/.; Euroheat, “UK Government Announces
Major Expansion of Heat Networks in Latest Step to Power
Homes with Green Energy,” accessed March 23, 2022, https://
www.euroheat.org/resource/uk-government-announces-major-
expansion-of-heat-networks-in-latest-step-to-power-homes-
with-green-energy.html.
172 Andreas Graf and Agora Energiewende, “Transitioning to a
Climate-Neutral EU Buildings Sector,” vol. 1, December 2021.
173 See Policy chapter. “IRENA et Al_2020_Renewable Energy
Policies in a Time of Transition.Pdf,” n.d. Richard Lowes et al.,
“The Perfect Fit: Shaping the Fit for 55 Package to Drive a
Climate-Compatible Heat Pump Market” (Regulatory Assistance
Project, Agora Energiewende, CLASP, Global Buildings
Performance Network, March 2022).
174 Department for Business, Energy and Industrial Strategy,
“Heat and Buildings Strategy,” October 2021, https://www.
gov.uk/government/publications/heat-and-buildings-strategy.
Department for Business, Energy and Industrial Strategy.
“Market-Based Mechanism for Low Carbon Heat.” GOV.UK,
October 2021. https://www.gov.uk/government/consultations/
market-based-mechanism-for-low-carbon-heat.
175 Orla Dwyer, “Explainer: Here’s How the Government’s Ambitious
Retrofitting Grant Scheme Is Meant to Work,” TheJournal.
ie, accessed March 18, 2022, https://www.thejournal.ie/
retrofit-scheme-ireland-explained-5677209-Feb2022/.
176 “FACT SHEET: Biden Administration Deploys American Rescue
Plan Funds to Protect Americans from Rising Home Heating
Costs; Calls on Utility Companies to Prevent Shut Offs This
Winter,” The White House, November 18, 2021, https://www.
whitehouse.gov/briefing-room/statements-releases/2021/11/18/
fact-sheet-biden-administration-deploys-american-rescue-plan-
funds-to-protect-americans-from-rising-home-heating-costs-
calls-on-utility-companies-to-prevent-shut-offs-this-winter/.
177 La Croix, “La prime pour l’installation d’une chaudière aux
énergies renouvelables augmente de 1 000 €,” La Croix, March
17, 2022, https://www.la-croix.com/Economie/Energie-prime-
linstallation-dune-chaudiere-energies-renouvelable-augme
nte-1-000-2022-03-17-1201205613.
178 Julian Wettengel, “Germany’s Carbon Pricing System for
Transport and Buildings,” Clean Energy Wire, August 10, 2021,
https://www.cleanenergywire.org/factsheets/germanys-planned-
carbon-pricing-system-transport-and-buildings.
179 IHS Markit, “Germany to Overcome Climate Aims Deficit with
More Renewables, Hydrogen,” IHS Markit, January 14, 2022,
https://cleanenergynews.ihsmarkit.com/research-analysis/
germany-to-overcome-climate-aims-deficit-with-more-
renewables-.html.
180 Ministry of Housing and Urban-Rural Development, “‘14th
Five-Year’ Building Energy Efficiency and Green Building
Development Plan,” 2021, https://www-mohurd-gov-cn.translate.
goog/gongkai/fdzdgknr/zfhcxjsbwj/202203/20220311_765109.
html?_x_tr_sl=auto_x_tr_tl=en_x_tr_hl=en-
US_x_tr_pto=wapp; Bärbel Epp, “Policy Supports Gains
for the Chinese Solar Thermal Industry,” Solarthermalworld
(blog), 2022, https://solarthermalworld.org/news/
policy-supports-gains-for-the-chinese-solar-thermal-industry/.
181 “BNamericas - Ministry of Energy Launches National
Heat An...,” BNamericas.com, accessed March 23,
2022, https://www.bnamericas.com/en/news/
ministry-of-energy-launches-national-heat-and-cold-strategy.
182 Natural Resources Canada, “Eligible Grants for My Home
Retrofit” (Natural Resources Canada, March 25, 2021),
https://www.nrcan.gc.ca/energy-efficiency/homes/canada-
greener-homes-grant/start-your-energy-efficient-retrofits/
plan-document-and-complete-your-home-retrofits/
eligible-grants-for-my-home-retrofit/23504.
183 Ministry of Economy, Trade and Industry, “New Energy Efficiency
Standards for Electric Water Heaters (Heat Pump Water Heaters
for Home Use) Formulated,” May 26, 2021, https://www.meti.
go.jp/english/press/2021/0526_003.html.
184 Snapshot Italy based on the following sources: F. Tognetti, “Analysis
of Existing Incentives in Europe for Heating Powered by Fossil
Fuels and Renewable Sources,” December 2020, https://www.
coolproducts.eu/wp-content/uploads/2020/12/Analysis-of-
Fossil-Fuel-Incentives-in-Europe_FINAL_.pdf; Samuel Thomas,
Louise Sunderland, and Marion Santini, “Pricing Is Just the Icing”
(Regulatory Assistance Project, June 2021).; G. De Clercq, “France
Ends Gas Heaters Subsidies, Boosts Heat Pumps in Bid to Cut
Russia Reliance,” Reuters, March 16, 2022, sec. Europe, https://www.
reuters.com/world/europe/france-ends-gas-heaters-subsidies-
boosts-heat-pumps-bid-cut-russia-reliance-2022-03-16/.
185 Euroheat, “Slovenia – Heating Boilers on Oil, Coal Banned
from 2023,” accessed March 23, 2022, https://www.euroheat.
org/resource/slovenia-heating-boilers-on-oil-coal-banned-
from-2023.html. See Renewables in Cities chapter.
186 Matt Gough, “California’s Cities Lead the Way to a Gas-Free
Future,” Sierra Club, July 22, 2021, https://www.sierraclub.org/
articles/2021/07/californias-cities-lead-way-gas-free-future. Anne
Barnard, “N.Y.C.’s Gas Ban Takes Fight Against Climate Change
to the Kitchen,” The New York Times, December 15, 2021, sec.
New York, https://www.nytimes.com/2021/12/15/nyregion/nyc-
gas-stove-heat-ban.html. Rebecca Leber, “Is This the Beginning
of the End of Gas Stoves and Dirty Heat in Buildings?,” Vox,
December 16, 2021, https://www.vox.com/2021/12/16/22834653/
new-york-gas-ban-buildings-climate-change-gas-stoves. Josh
Grant, “Quebec Bans Oil Heating in New Homes Starting Dec.
31,” CBC, 2021, https://www.cbc.ca/news/canada/montreal/
quebec-bans-oil-heating-1.6252420. Emily Chung, “Why Oil and
Gas Heating Bans for New Homes Are a Growing Trend | CBC
News,” CBC News, 2021, https://www.cbc.ca/news/science/
bans-fossil-fuel-heating-homes-1.6327113.
187 “A Leading U.S. Utility Stealthily Fights the Electrification of
Heating Systems,” Yale E360, accessed March 23, 2022, https://
e360.yale.edu/digest/a-leading-u-s-utility-stealthy-fights-
the-electrification-of-heating-systems. “Natural Gas Industry
Documents: The Electrification Fight,” Climate Investigations
Center, accessed March 23, 2022, https://climateinvestigations.
org/natural-gas-industry-documents/. Energy Utilities Alliance,
“Decarbonising Heat in Buildings: Putting Consumers First,”
2021, https://eua.org.uk/without-a-choice-of-different-heat-
technologies-for-uk-housing-stock-decarbonisation-of-heat-
will-fail-says-new-eua-report/. “Utilities Can’t Be for the Paris
Agreement and against Building…,” Canary Media, accessed
March 23, 2022, https://www.canarymedia.com/articles/utilities/
why-utilities-cant-be-both-against-building-electrification-
and-for-the-paris-agreement. Benjamin Storrow, “POLITICO
Pro | Article | Leaked Docs: Gas Industry Secretly Fights
Electrification,” ClimateWire (blog), accessed March 23, 2022,
https://subscriber.politicopro.com/article/eenews/1063731537.;
SP Global Market Intelligence, “Gas Ban Monitor: Denver
Tackles Retrofits; Pacific Northwest Movement Grows,” 2021,
https://www.spglobal.com/marketintelligence/en/news-insights/
latest-news-headlines/gas-ban-monitor-denver-tackles-retrofits-
pacific-northwest-movement-grows-68514391.
188 European Commission, “Proposal for a Directive of the European
Parliament and of the Council on the Energy Performance of
Buildings,” December 15, 2021, https://ec.europa.eu/energy/sites/
default/files/proposal-recast-energy-performance-buildings-
directive.pdf.
189 IEA, “Are Renewable Heating Options Cost-Competitive with
Fossil Fuels in the Residential Sector? – Analysis,” IEA, 2021,
https://www.iea.org/articles/are-renewable-heating-options-
cost-competitive-with-fossil-fuels-in-the-residential-sector.
190 Ibid. IRENA, “Renewable Power Generation Costs in 2020,”
June 2021, https://www.irena.org/publications/2021/Jun/
Renewable-Power-Costs-in-2020. Lindsay Sugden, “The
Economic Proposition for Electric Heat Pumps Replacing Natural
Gas Boilers Has Never Looked Better.,” 2022, https://www.
243
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linkedin.com/feed/update/urn:li:activity:6911574652616101888/.
Jan Rosenow, “Analysis: Running Costs of Heat Pumps
versus Gas Boilers” (Regulatory Assistance Project, 2022),
https://www.raponline.org/wp-content/uploads/2022/02/
Heat-pump-running-costs-v271.pdf. Talor Gruenwald,
“Reality Check: The Myth of Stable and Affordable Natural
Gas Prices,” RMI, November 17, 2021, https://rmi.org/
the-myth-of-stable-and-affordable-natural-gas-prices/.
191 Jake Barnes, “The Economics of Heat Pumps and the (Un)
Intended Consequences of Government Policy” 1 (March 2020).
Thomas, Sunderland, and Santini, “Pricing Is Just the Icing.” Furey,
Neumann, and Huxley-Reicher, “Electric Buildings 2021.” Sherri
Billimoria and Mike Henchen, “Regulatory Solutions for Building
Decarbonization” (RMI), accessed March 23, 2022, https://rmi.
org/insight/regulatory-solutions-for-building-decarbonization/.
192 Thomas, Sunderland, and Santini, “Pricing Is Just the Icing.”
193 Ibid.
194 I. Parry, S. Black, and N. Vernon, “Still Not Getting Energy Prices
Right: A Global and Country Update of Fossil Fuel Subsidies,”
IMF, September 24, 2021, https://www.imf.org/en/Publications/
WP/Issues/2021/09/23/Still-Not-Getting-Energy-Prices-Right-A-
Global-and-Country-Update-of-Fossil-Fuel-Subsidies-466004.
195 Graf and Agora Energiewende, “Transitioning to a Climate-
Neutral EU Buildings Sector; Lucie Lochon and OFATE,
“Chauffage Résidentiel : Objectifs, Constats et Enjeux Sociétaux,”
August 31, 2021, https://energie-fr-de.eu/fr/efficacite-chaleur/
actualites/lecteur/memo-sur-les-objectifs-constats-et-enjeux-
societaux-du-chauffage-residentiel.html?file=files/ofaenr/04-
notes-de-synthese/02-acces-libre/05-efficacite-chaleur/2021/
OFATE_Memo_Chauffage_Residentiel_2108.pdf.
196 Furey, Neumann, and Huxley-Reicher, “Electric Buildings 2021.”
Jeff Deason et al., “Electrification of Buildings and Industry
in the United States: Drivers, Barriers, Prospects, and Policy
Approaches” (LBLN, 2018). Box 3 from the following sources:
L. Sugden, “Heat Pumping Technologies Magazine - Heat
as a Service Propositions: One of the Keys to Unlocking the
Residential Retrofit Market for Heat Pumps,” IEA HPT, 2021,
https://doi.org/10.23697/Z0K7-9A58. L. Sugden, Delta-EE,
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Mieten,” Viessmann, February 11, 2022, https://www.viessmann.
de/de/wohngebaeude/viessmann-waerme.html.
197 Betony Jones et al., “California Building Decarbonization:
Workforce Needs and Recommendations” (UCLA Luskin Center
for Innovation), accessed March 23, 2022, https://innovation.
luskin.ucla.edu/wp-content/uploads/2019/11/California_
Building_Decarbonization.pdf. Sidebar 2 from personal
communication with Michael Renner from IRENA Renewable
Energy and Jobs – Annual Review 2021. Figure 10 from IRENA
Renewable Energy and Jobs – Annual Review 2021.
198 Based on IEA, World Energy Balances, op. cit. note 33.
199 Ibid.
200 IEA, “World Energy Balances”, op. cit. note 33. Figure 11 from IEA,
op. cit. this note and sources throughout this chapter.
201 World Bank, “World Bank Open Data | Data,” accessed January
31, 2022, https://data.worldbank.org/.
202 IEA, “World Energy Balances”, op. cit. note 33.
203 IEA, “Tracking Industry 2021 – Analysis,” November 2021, https://
www.iea.org/reports/tracking-industry-2021.
204 Ibid.
205 UN News, “New FAO Analysis Reveals Carbon Footprint of Agri-
Food Supply Chain,” November 8, 2021, https://news.un.org/en/
story/2021/11/1105172.
206 FAO, “Emissions Due to Agriculture,” 2021, https://www.fao.
org/3/cb3808en/cb3808en.pdf.
207 FAO, “Emissions Due to Agriculture,” 2021, https://www.fao.org/3/
cb3808en/cb3808en.pdf. FAO, “Emissions Due to Agriculture,”
2021, https://www.fao.org/3/cb3808en/cb3808en.pdf. Box 4
based on data from IEA, “World Energy Balances”, op. cit. note 33.
212 P. Molloy and L. Baronett, “‘Hard-to-Abate’ Sectors Need
Hydrogen. But Only 4% Is ‘Green,’” Energy Post, September
3, 2019, https://energypost.eu/hard-to-abate-sectors-need-
hydrogen-but-only-4-is-green/. BNEF (2022) Hydrogen
Production Database, https://www.bnef.com/interactive-
datasets/2d5fb18e5f001461 ; Johnstone, P., Rogge, K. S., Kivimaa, P.,
Farné Fratini, C., Primmer, E. (2021). Exploring the re-emergence
of industrial policy: Perceptions regarding low-carbon energy
transitions in Germany, the United Kingdom and Denmark. Energy
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erss.2020.101889; IRENA (2020), Green hydrogen: A guide to policy
making; IRENA (2021a), Green hydrogen supply: A guide to policy
making; IRENA (2022a), Geopolitics of the Energy Transformation:
The Hydrogen Factor; IRENA (2022b), Green hydrogen for industry:
A guide to policy making. Sidebar 3 from the following sources:
IRENA (2020), Green hydrogen: A guide to policy making; IRENA
(2021), Green hydrogen supply: A guide to policy making; IRENA
(2022a), Geopolitics of the Energy Transformation: The Hydrogen
Factor; IRENA (2022b), Green hydrogen for industry: A guide to
policy making.
213 IEA, “Chemicals – Analysis,”accessed May 26 2022, https://www.
iea.org/reports/chemicals.
214 “Green Ammonia and Low-Carbon Fertilizers,” Fertilizers Europe,
accessed May 26, 2022, https://www.fertilizerseurope.com/
paving-the-way-to-green-ammonia-and-low-carbon-fertilizers/.
215 See Box 6 in REN21, Renewables 2021 Global Status Report,
(Paris: 2021), https://www.ren21.net/gsr-2021.
216 Based on data research done by REN21.
217 Based on data research done by REN21.
218 Masen, “Le Maroc dévoile son plus grand projet d’hydrogène vert
et d’ammoniac,” Masen, August 16, 2021, https://www.masen.ma/
fr/actualites-masen/le-maroc-devoile-son-plus-grand-projet-
dhydrogene-vert-et-dammoniac; J. M. Takouleu, “MOROCCO:
French Total Eren to Invest €9bn in Hydrogen and Green
Ammonia,” Afrik 21, February 1, 2022, https://www.afrik21.africa/
en/morocco-french-total-eren-to-invest-e9bn-in-hydrogen-and-
green-ammonia/; Yara International, “Yara Partners with Statkraft
and Aker Horizons to Establish Europe’s First Large-Scale Green
Ammonia Project in Norway,” Corporate releases, February 18,
2021, https://www.yara.com/corporate-releases/yara-partners-
with-statkraft-and-aker-horizons-to-establish-europes-first-
large-scale-green-ammonia-project-in-norway/; “ACME Group
Selects KBR for Its Green Ammonia Project in Oman,” REGlobal,
October 14, 2021, http://reglobal.co/acme-group-selects-kbr-for-
its-green-ammonia-project-in-oman/.
219 “Pulp Paper - Fuels Technologies,” IEA, November 2021,
https://www.iea.org/fuels-and-technologies/pulp-paper.
220 Cepi, “Reinvest 2050,” All Case Studies (blog), accessed March 26,
2022, https://reinvest2050.eu/cases/.
221 E. Mandel, “Green Hydrogen Making Inroads in the Paper
Industry,” H2 Bulletin, October 27, 2021, https://www.h2bulletin.
com/green-hydrogen-making-inroads-in-the-paper-industry/.
222 “Iron and Steel – Analysis,” IEA, November 2021, https://www.iea.
org/reports/iron-and-steel.
223 Sebastian Sadowski, “Green Steel Tracker,” Leadership Group
for Industry Transition, accessed May 26, 2022, https://www.
industrytransition.org/green-steel-tracker/; Salzgitter AG,
“Salzgitter Presents New ‘Salzgitter AG 2030’,” Press Release,
February 2, 2022, https://www.salzgitter-ag.com/en/newsroom/
press-releases.html. “ArcelorMittal Sestao to Become the
World’s First Full-Scale Zero Carbon-Emissions Steel Plant,”
ArcelorMittal, July 13, 2021, https://corporate.arcelormittal.com/
media/press-releases/arcelormittal-sestao-to-become-the-
world-s-first-full-scale-zero-carbon-emissions-steel-plant/.
224 Ibid.
225 IEA, “Aluminium – Analysis,” Report, November 2021, https://
www.iea.org/reports/aluminium.
226 Ibid.
227 Ibid.
228 EGA, “EGA and DEWA Make the UAE the First Country in the
World to Produce Aluminium Using the Power of the Sun,”
244
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OVERVIEW
Press Release, January 18, 2021, https://www.ega.ae/en/media-
releases/2021/january/ega-and-dewa-to-produce-aluminium-
using-power-of-the-sun-in-world-first/; ARENA, “Integrating
Concentrating Solar Thermal Energy,” Australian Renewable
Energy Agency, accessed March 26, 2022, https://arena.gov.
au/projects/integrating-concentrating-solar-thermal-energy-
into-the-bayer-alumina-process/; ARENA, “Alcoa Aluminium
Producer to Trial Renewable Energy,” Australian Renewable
Energy Agency, May 21, 2021, https://arena.gov.au/blog/
alcoa-aluminium-producer-to-trial-renewables/.
229 IEA, “Cement – Analysis,” November 2021, https://www.iea.org/
reports/cement.
230 See Bioenergy section in Market and Industry chapter in REN21,
op. cit. note 215.
231 IEA, “Cement – Analysis,” November 2021, https://www.iea.org/
reports/cement.
232 A. Franke, “BASF Signs 21 TWh PPA over 25 Years with Engie,
Sets up Green Energy Unit,” SP Global Commodity Insights,
November 29, 2021, https://www.spglobal.com/commodityinsights/
en/market-insights/latest-news/electric-power/112921-basf-
signs-21-twh-ppa-over-25-years-with-engie-sets-up-green-
energy-unit; “CLP advised Agder Energi in the negotiations of
a 2.2 TWh PPA with Yara,” CLP, February 15, 2022, https://clp.
no/clp-advised-agder-energi-in-the-negotiations-of-a-2-2-twh-
ppa-with-yara/; T. Young, “Atome Signs Hydro PPA for Ammonia
Project,” PE media network, May 4, 2022, https://pemedianetwork.
com/hydrogen-economist/articles/green-hydrogen/2022/
atome-signs-hydro-ppa-for-ammonia-project/.
233 European Commission, “Carbon Border Adjustment Mechanism,” Text,
European Commission - European Commission, July 14, 2021, https:
//ec.europa.eu/commission/presscorner/detail/en/qanda_21_3661.
234 Ibid.
235 UNIDO, “UNIDO at COP26: Industrial Development and Climate
Change,” News, accessed February 14, 2022, https://www.
unido.org/news/unido-cop26-industrial-development-and-
climate-change; UNIDO, “World’s Largest Steel and Concrete
Buyers Make Game-Changing Push for Greener Solutions,”
News, accessed February 14, 2022, https://www.unido.org/
news/worlds-largest-steel-and-concrete-buyers-make-game-
changing-push-greener-solutions.
236 Sebastian Sadowski, “Compare Roadmaps – Leadership Group
for Industry Transition,” https://www.industrytransition.org/,
accessed January 17, 2022, https://www.industrytransition.org/
industry-transition-tracker/compare-roadmaps/.
237 Ibid.
238 Government of UK, “Industrial Decarbonisation Strategy,”
Business and the environment, March 17, 2021, https://www.
gov.uk/government/publications/industrial-decarbonisation-
strategy; Government of UK, “Industrial Decarbonisation and
Energy Efficiency Roadmaps to 2050,” Climate change and
energy, March 25, 2015, https://www.gov.uk/government/
publications/industrial-decarbonisation-and-energy-efficiency-
roadmaps-to-2050.
239 “Sweden’s Recovery Plan / Industrial Sector –
Policies,” IEA, June 15, 2021, https://www.iea.org/
policies/13702-swedens-recovery-plan-industrial-sector.
240 Statkraft, “Partnering to Explore Green Hydrogen and Ammonia
in India and Brazil,” accessed May 26, 2022, https://www.
statkraft.com/newsroom/news-and-stories/archive/2022/
partnering-to-explore-green-hydrogen-and-ammonia-in-india-
and-brazil/; “USDA Announces Plans for $250 Million Investment
to Support Innovative American-Made Fertilizer to Give US
Farmers More Choices in the Marketplace,” accessed May 26,
2022, https://www.usda.gov/media/press-releases/2022/03/11/
usda-announces-plans-250-million-investment-support-
innovative.
241 REN21 Policy Database. See Figure 23 in the GSR 2022 Data
Pack, www.ren21.net/gsr-2022.
242 Accenture, “Industrial Clusters, Working Together to Achieve Net
Zero,” 2021, https://www.accenture.com/_acnmedia/PDF-147/
Accenture-WEF-Industrial-Clusters-Report.pdf#zoom=40;
Department for Business, Energy and Industrial Strategy,
“What Is the Industrial Cluster Mission?,” 2019, https://assets.
publishing.service.gov.uk/government/uploads/system/uploads/
attachment_data/file/803086/industrial-clusters-mission-
infographic-2019.pdf.
243 Accenture, op. cit. note 242.
245 World Economic Forum, “Transitioning Industrial Clusters towards
Net Zero,” Projects, 2021, https://www.weforum.org/projects/
transitioning-industrial-clusters-to-net-zero/
246 Ibid; B. Gross, “To Decarbonize Heavy Industry, We Must
Focus on Industrial Clusters,” World Economic Forum,
January 17, 2022, https://www.weforum.org/agenda/2022/01/
decarbonizing-heavy-industry-industrial-clusters/.
248 IRENA, “Green Hydrogen Cost Reduction,” December
2020, https://www.irena.org/publications/2020/Dec/
Green-hydrogen-cost-reduction.
249 N. Lazzaro, “Subsidies Not Optimal Solution for Clean Steel,
Aluminum: Panel,” SP Global Commodity Insights, accessed
June 2, 2022, https://www.spglobal.com/commodityinsights/en/
market-insights/latest-news/energy-transition/022422-subsidies-
not-optimal-solution-for-clean-steel-aluminum-panel.
250 IEA, “Net Zero by 2050,” May 17, 2021, https://www.iea.org/
reports/net-zero-by-2050.
251 E. Onstad, “Steel Sector May Be Saddled with up to $70bn in
Stranded Assets – Report,” mining.com, June 30, 2021, https://
www.mining.com/web/steel-sector-may-be-saddled-with-up-to-
70bn-stranded-assets-report/.
252 Figure 12 based on IEA, “World Energy Balances”, op. cit. note 33
and various sources throughout this report.
253 IEA, “Tracking Transport 2021 – Analysis,” November 2021,
https://www.iea.org/reports/tracking-transport-2021.
254 IEA, op. cit. note 253.
258 Based on IEA, “World Energy Balances”, op. cit. note 33
259 Numbers may not add up to 100% due to rounding. Based on
IEA, “World Energy Balances”, op. cit. note 33. Box 5 from the
following sources: IEA, IRENA, REN21, 2018, Renewable Energy
Policies in a Time of Transition, https://www.ren21.net/2018-
renewable-energy-policies-in-a-time-of-transition/;Plug-in
hybrids differ from simple hybrid vehicles, as the latter use
electric energy produced only by braking or through the
vehicle’s internal combustion engine. Therefore, only plug-in
hybrid EVs allow for the use of electricity from renewable
sources. Although not an avenue for increased penetration of
renewable electricity, hybrid vehicles contribute to reduced
fuel demand and remain far more numerous than EVs. Electro-
fuels, also known as e-fuels, are synthetic fuels that do not
chemically differ from conventional fuels such as diesel or
petrol, generated in procedures known as power-to-liquids
(PtL) and power-to-gas (PtG). Renewable electro-fuels are
generated exclusively from electricity from renewable sources.
See Verband der Automobilindustrie, “Synthetic fuels – power
for the future”, https://www.vda.de/en/topics/environment-
and-climate/e-fuels/synthetic-fuels.html, viewed 1 May 2019,
and N. Aldag, “Role for e-fuels in EU transport?” Sunfire, 12
January 2018, https://www.transportenvironment.org/sites/te/
files/Industry%20perspectives%20on%20the%20future%20
development%20of%20electrofuels%2C%20Nils%20Aldag.
pdf. See IRENA, IEA and REN21, op. cit. this note, Figure 3.4,
p. 41; For an example using wind, see M. Schaus, “Greening
Our Shipping: Wind-Powered Cargo Ships Can Change Future
of Freight Cutting Emissions By 90%”, Good News Network,
24 October 2020, https://www.goodnewsnetwork.org/
oceanbird-prototype-cuts-cargo-ship-emissions-by-90pt/.
260 Based on IEA, “World Energy Balances”, op. cit. note 33
261 Ibid.
262 Ibid.
263 Larger size of vehicles lead to higher energy consumption
and emissions: OECD/ITF, “Lightening Up: How Less
Heavy Vehicles Can Help Cut CO2 Emissions” (Paris,
2017), https://www.itf-oecd.org/sites/default/files/docs/
less-heavy-vehicles-cut-co2-emissions.pdf. p. 7. See also:
L. Cozzi and A. Petropoulos, “Growing Preference for SUVs
Challenges Emissions Reductions in Passenger Car Market”
(IEA, October 15, 2019), https://www.iea.org/commentaries/
245
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OVERVIEW
growing-preference-for-suvs-challenges-emissions-reductions-
in-passenger-car-market. IEA, “Energy Efficiency Indicators
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to 2040 (Paris: 2019), IEA, “Market Report Series: Energy
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264 Passenger transport from: SLOCAT, “Transport and Climate
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8, 2018, https://slocat.net/2011-2/. Freight from: SLOCAT,
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265 Ibid. Figure 3 from REN21 analysis based on IEA, World Energy
Statistics and Balances, op. cit. note 33.
266 See Bioenergy section in Markets and Industry chapter.
Based on national biofuels data as referenced below; biofuels
supplemented by data from IEA, “Oil 2021,” March 2021, https://
www.iea.org/reports/oil-2021.
267 See Bioenergy section in Markets and Industry chapter.
Based on national biofuels data as referenced below; biofuels
supplemented by data from IEA, “Oil 2021,” March 2021, https://
www.iea.org/reports/oil-2021.
268 Renewable diesel is also called hydrogenated vegetable oil (HVO)
or hydrogenated esters of fatty acids (HEFA). This is produced
by taking vegetable oils and other bio-based oils and liquids,
including waste materials such as used cooking oil, and treating
them with hydrogen which removes the oxygen and produces a
hydrocarbon which can be refined to a product which has fuel
qualities equivalent to fossil-based diesel. The refining process
also produced bio-based LPG and can be tuned to produce
other fuels including biojet. Renewable diesel can be used mixed
in any proportion with fossil diesel or on its own. Production
estimate is based on analysis of existing and new capacity as
shown in Biofuels Digest, “50 Renewable Diesel Projects and
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biofuelsdigest.com/bdigest/2021/02/08/50-renewable-diesel-
projects-and-the-technologies-behind-them/ and research on
specific plant outputs. See Bioenergy industry section in Market
and Industry chapter for more detailed information.
269 IEA, World Energy Statistics and Balances, op. cit. note 33.
270 Sidebar 4 from the following sources: International Energy
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271 For example, in the EU where the renewable share of electricity
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273 A. Jenn, “Revolutionary Changes in Transportation, from Electric
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274 The share of passenger transport in road transport energy
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275 Statista, “Global Car Sales 2010-2021,” January 2022, 2010–21,
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car-sales-since-1990/. Best Selling Cars, “2021 (Full Year) International:
Worldwide Car Sales,” January 18, 2022, https://www.best-selling-cars.
com/international/2021-full-year-international-worldwide-car-sales/.
276 EV-Volumes, “The Electric Vehicle World Sales Database,”
accessed June 2, 2022, https://www.ev-volumes.com/. F. Richter,
“Chart: Global Electric Car Sales Doubled in 2021,” Statista,
February 15, 2022, https://www.statista.com/chart/26845/global-
electric-car-sales/. For 2020, see Transport section in Global
Overview chapter in GSR2021, www.ren21.net/gsr-2021.
277 L. Cozzi and A. Petropoulos, “Global SUV Sales Set Another
Record in 2021, Setting Back Efforts to Reduce Emissions
– Analysis,” IEA, December 21, 2021, https://www.iea.org/
commentaries/global-suv-sales-set-another-record-in-2021-
setting-back-efforts-to-reduce-emissions.
278 The Economic Times, “Two-Wheeler Sales Volume to Fall for
Third Straight Fiscal Year: Crisil,” February 24, 2022, https://
economictimes.indiatimes.com/industry/auto/two-wheelers-
three-wheelers/two-wheeler-sales-volume-to-fall-for-third-
straight-fiscal-year-crisil/articleshow/89804898.cms. EVreporter,
“India’s Electric Vehicle Sales Trend for 2021,” January 11,
246
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OVERVIEW
2022, https://evreporter.com/ev-sales-trend-in-india-in-2021/.
Elektrek, “NIU Posts 2021 Sales Figures Showing over 1 Million
Electric Scooter Sales,” January 4, 2022, https://electrek.
co/2022/01/04/nius-2021-sales-figures-show-big-jump-sold-
over-1-million-electric-scooters-e-mopeds/. G. Balachandar,
“Electric 2- and 3-Wheelers See Highest-Ever Monthly Sales
in October,” The Hindu BusinessLine, November 1, 2021,
https://www.thehindubusinessline.com/companies/electric-
2-and-3-wheelers-see-highest-ever-monthly-sales-in-oct/
article37288269.ece. MotorcyclesData, “Chinese Motorcycles
Market - Facts Data 2022,” January 30, 2022, https://www.
motorcyclesdata.com/2022/01/30/chinese-motorcycles-market/.
“2021 New Motorcycle Sales Bounce Back Stronger Than 2020,”
accessed May 9, 2022, https://www.rideapart.com/news/562150/
new-motorbike-sales-2021-worldwide/. Consumer awareness,
low-noise transport: Global Market Insights, “Electric Motorcycles
Scooters Market Size - Global Report 2027” (Global Market
Insights, 2020), https://www.gminsights.com/industry-analysis/
electric-motorcycles-and-scooters-market.
279 For more on biofuels and EV efforts in cities, see the REN21,
Renewables in Cities, op. cit. note 185. Sustainable Bus, “Electric
Bus, Main Fleets and Projects around the World,” May 19, 2020,
https://www.sustainable-bus.com/electric-bus/electric-bus-
public-transport-main-fleets-projects-around-world/. An example
of renewable energy charging stations is the bus charging
station in Jinjiang’s Binjiang Business District (Fujian Province,
China), which was charging its electric buses using solar power
as of end-2019. China Energy Storage Alliance, “2019 Sees New
Solar-Storage-Charging Stations Launched Across China,”
November 29, 2019, http://en.cnesa.org/latest-news/2019/11/29/
et8hrtqdeblp7knrz3rjl6bg4ohjlt. Many other charging stations that
use solar EV and energy storage have been developed in China
since 2017. Also, to incentivise increased public transport use,
some cities have made public transport free. In 2018, Luxembourg
became the first country to pledge to make all of its public
transport free for users by 2020, although these initiatives are
often mainly to decrease congestion and local pollution, from D.
Boffey, “Luxembourg to Become First Country to Make All Public
Transport Free,” The Guardian, December 5, 2018, https://www.
theguardian.com/world/2018/dec/05/luxembourg-to-become-
first-country-to-make-all-public-transport-free.
280 ITF, “Towards Road Freight Decarbonisation,” December 5, 2018,
https://www.itf-oecd.org/towards-road-freight-decarbonisation.
281 For example, in 2021, Glenfiddich (Scotland) began using biogas
from whisky residue in its truck fleet, while Royal Mail (UK) added
29 biogas trucks to its fleet. J. Glover, “Glenfiddich Converts
Whisky Residue into Biogas Fuel,” Business Insider, July 27, 2021,
https://www.insider.co.uk/news/glenfiddich-converts-whisky-
residue-biogas-24625901. Edie, “Royal Mail to Add 29 Biogas
HGVs to Delivery Fleet,” May 14, 2021, https://www.edie.net/
royal-mail-to-add-29-biogas-hgvs-to-delivery-fleet/.
282 Around three-quarters of passenger rail transport, and nearly half
of freight rail transport globally, is electric, from IEA, The Future
of Rail, https://www.iea.org/reports/the-future-of-rail. Based on
IEA, World Energy Statistics and Balances, op. cit. note 33.
283 SLOCAT, “Tracking Trends in a Time of Change: The Need for
Radical Action Towards Sustainable Transport Decarbonisation,
Transport and Climate Change Global Status Report – 2nd
Edition,” 2021, https://tcc-gsr.com/wp-content/uploads/2021/06/
Slocat-Global-Status-Report-2nd-edition_high-res.pdf.
284 See, for example: Agence France-Presse, “Dutch Electric Trains
Become 100% Powered by Wind Energy,” The Guardian, January
10, 2017, https://www.theguardian.com/world/2017/jan/10/dutch-
trains-100-percent-wind-powered-ns. the Swiss railway company
SBB CFF FFS sources 75% of its power from hydropower, from
International Union of Railways (UIC), Railway Statistics: Synopsis
(Paris: 2017), uic_statistics_synopsis_2017.pdf
285 For example: The Economic Times, “963 Railway Stations
Solarised, 550 More to Get Rooftop Solar Panels Soon: Indian
Railways,” August 31, 2020, https://economictimes.indiatimes.
com/industry/transportation/railways/963-railway-stations-
solarised-550-more-to-get-rooftop-solar-panels-soon-indian-
railways/articleshow/77853689.cms?from=mdr. Biofuels
International Magazine, “18 New Biodiesel Fuelled Trains
Coming to the Netherlands,” July 13, 2017, https://biofuels-news.
com/news/18-new-biodiesel-fuelled-trains-coming-to-the-
netherlands/.
286 UK: Railway Technology, “Hitachi Rail, ScottishPower Sign
Renewable Energy Deal,” November 5, 2021, https://www.
railway-technology.com/news/hitachi-rail-scottishpower/.
Global Railway Review, “Tarmac and DB Cargo UK to Use
Renewable HVO Fuel to Power Trains,” June 8, 2021, https://
www.globalrailwayreview.com/news/124617/tarmac-db-cargo-
uk-hvo-fuel/. Green Car Congress, “UK Consortium Developing
Biogas and Hydrogen Dual-Fuel Class 66 Locomotive,” July 5,
2021, https://www.greencarcongress.com/2021/07/20210705-
freightliner.html. New South Wales: T. Rabe, “Sydney Rail Network
Goes Green with Renewable Energy Deal,” Sdyney Morning
Herald, October 21, 2021, https://www.smh.com.au/national/nsw/
sydney-rail-network-goes-green-with-renewable-energy-deal-
20211020-p591n1.html. Canada: https://www.globenewswire.
com/news-release/2021/11/03/2326404/0/en/CN-and-Progress-
Rail-Advance-Sustainability-Efforts-with-a-Renewable-Fuels-
Partnership.html.
287 https://railway-news.com/orr-statistics-show-rail-passengers-
returning/;
288 https://www.bloomberg.com/news/articles/2021-07-23/rail-
shares-seen-on-track-after-lagging-market-in-2021-rebound;
https://www.railwayage.com/news/aar-rail-traffic-rebound/
289 https://www.railnews.co.uk/news/2021/10/14-railfreight-goes-
back-to-diesel.html
290 https://unctad.org/news/maritime-trade-weathers-covid-19-
storm-faces-far-reaching-knock-effects;
Emissions as of 2018 (latest data) from: IMO, “Fourth IMO
Greenhouse Gas Study,” 2020, https://wwwcdn.imo.org/
localresources/en/MediaCentre/Documents/Fourth%20IMO%20
GHG%20Study%202020%20Executive%20Summary.pdf.
292 For example: 100% renewably-fuelled ferry fleet: Biofuel
Express, “Take the ferry to the Copenhagen Opera with Neste
MY Renewable Diesel HVO”, viewed 27 May 2021, https://
biofuels-news.com/news/bunker-one-to-supply-danish-ferry-
route-with-biodiesel/. Hybrid ferry fleet with storage but fossil
fuel-based: Wärtsilä, “Three New Finnlines Ships to Go Green
with Wärtsilä Hybrid Systems,” February 5, 2020, https://www.
wartsila.com/media/news/05-02-2020-three-new-finnlines-
ships-to-go-green-with-wartsila-hybrid-systems-2632097.
Electric outboard engines: IEA, “Ordinance (2017: 1317) on
Grants to Private Individuals for the Purchase of Electric Bikes,
Mopeds, Motorcycles and Outboard Motors,” November 4, 2019,
https://www.iea.org/policies/7159-ordinance-2017-1317-on-
grants-to-private-individuals-for-the-purchase-of-electric-bikes-
mopeds-motorcycles-and-outboard-motors. Mobility Foresights,
“Global Marine Outboard Engine Market 2021-2026 | April 2022
Updated,” April 2022, 2019–25, https://mobilityforesights.com/
product/marine-outboard-engine-market/. Torqeedo-Belux,
“Torqeedo-BeLux Electric Outboard Motors,” accessed May 27,
2021, http://www.torqeedo-belux.com/Solaire/Torqeedo%20
solar%20pannel%2045%20W.htm. Global Market Insights,
“Electric Outboard Engines Market Size - Growth Forecast
2027,” 2020, https://www.gminsights.com/industry-analysis/
electric-outboard-engine-market.
293 Beginning using e-methanol made from renewables: A.
Frangoul, “Maersk Spends $1.4 Billion on Ships That Can
Run on Methanol,” CNBC, August 24, 2021, https://www.
cnbc.com/2021/08/24/maersk-spends-1point4-billion-
on-ships-that-can-run-on-methanol.html. Launching
renewable-based shipping offers and investing in biomethane
production capacity: Bioenergy Insight Magazine, “CMA
CGM to Invest in Biomethane Production for Shipping,”
April 13, 2021, https://www.bioenergy-news.com/news/
cma-cgm-to-invest-in-biomethane-production-for-shipping/.
294 Bunker One, Nature Energy, and MAKEEN Energy: Ship
Bunker, “Bunker One to Sell Danish Produced Liquefied Biogas
Bunkers,” September 24, 2021, https://shipandbunker.com/news/
emea/502563-bunker-one-to-sell-danish-produced-liquefied-
biogas-bunkers. Biogas, “Gasum to Supply Finnish Border Guard
with Biogas,” Renewable Energy Magazine, April 7, 2021, https://
www.renewableenergymagazine.com/biogas/gasum-to-supply-
finnish-border-guard-with-20210407. Gasum and Baltic Sea Action
Group: Bioenergy Insight Magazine, “Sewage from Cargo Ships
Turned into Biogas in Finland,” December 9, 2021, https://www.
bioenergy-news.com/news/sewage-from-cargo-ships-turned-
into-biogas-in-finland/. The Maritime Executive, “Expanding
Biogas Production to Meet Growing Maritime Demand,”
247
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April 29, 2021, https://www.maritime-executive.com/article/
expanding-biogas-production-to-meet-growing-maritime-demand.
295 Times Aerospace, “IATA: Passenger Demand Recovery Continued
in 2021,” January 26, 2022, https://www.timesaerospace.
aero/news/air-transport/iata-passenger-demand-recovery-
continued-in-2021. Air traffic plummeted in 2020 and saw a
delayed recovery: Seating capacity fell by around 50%, while
flights decreased from 38.9 million in 2019 to 16.4 million in 2020.
Seating capacity: UN News, “Air Travel down 60 per Cent, as
Airline Industry Losses Top $370 Billion: ICAO,” January 15, 2021,
https://news.un.org/en/story/2021/01/1082302. Statista, “Number
of Flights Performed by the Global Airline Industry from 2004 to
2022,” May 11, 2020, https://www.statista.com/statistics/564769/
airline-industry-number-of-flights/.
296 IATA, “Recovery Delayed as International Travel Remains Locked
Down,” July 28, 2020, https://www.iata.org/en/pressroom/
pr/2020-07-28-02/.
297 IATA, “May Air Cargo 9.4% Above Pre-COVID Levels,” July 7, 2021,
https://www.iata.org/en/pressroom/pr/2021-07-07-01/.accessed
9 March 2022.
Emissions from: Our world in data, “Climate Change and Flying:
What Share of Global CO2 Emissions Come from Aviation?,”
accessed April 6, 2022, https://ourworldindata.org/co2-
emissions-from-aviation. largest sustainable fuel agreement
in aviation history: PR Newswire, “United, Honeywell Invest in
New Clean Tech Venture from Alder Fuels, Powering Biggest
Sustainable Fuel Agreement in Aviation History,” September
9, 2021, https://www.prnewswire.com/news-releases/united-
honeywell-invest-in-new-clean-tech-venture-from-alder-fuels-
powering-biggest-sustainable-fuel-agreement-in-aviation-
history-301371958.html. targets for 100% biofuel planes by 2030:
Edie, “Boeing Planning to Debut 100% Biofuel Planes by 2030,”
January 25, 2021, https://www.edie.net/boeing-planning-to-
debut-100-biofuel-planes-by-2030/. multi-year partnerships for
sustainable aviation fuel: Edie, “British Airways Inks Multi-Year
Sustainable Aviation Fuel Supply Contract,” December 6,
2021, https://www.edie.net/british-airways-inks-multi-year-
sustainable-aviation-fuel-supply-contract/. Circular, “British
Airways Agree First Ever UK Produced Sustainable Aviation
Fuel Supply,” December 7, 2021, https://www.circularonline.
co.uk/news/british-airways-agree-first-ever-uk-produced-
sustainable-aviation-fuel-supply/. world’s first plant dedicated
to producing carbon-neutral jet fuel: N. Muller and N. King,
“Aviation: Germany Opens World’s First Plant for Clean Jet
Fuel,” Deutsche Welle, April 10, 2021, https://www.dw.com/en/
sustainable-aviation-fuel-power-to-liquid/a-59398405.
299 ICAO, “Airports,” accessed March 8, 2022, https://www.icao.
int/environmental-protection/GFAAF/Pages/Airports.aspx.
Electric planes: Wright: Elektrive, “Wright Electric Announces
Plans for 100-Seater Electric Aircraft,” November 5, 2021, https://
www.electrive.com/2021/11/05/wright-electric-announces-
plans-for-100-seater-electric-aircraft/. United: Future Travel
Experience, “United Airlines to Purchase Electric Aircraft Set to
Launch by 2026,” July 2021, https://www.futuretravelexperience.
com/2021/07/united-airlines-to-purchase-electric-aircraft-set-
to-launch-by-2026/. UK Tech News, “Swedish Startup to Launch
Electric Planes in the UK by 2026, Gets £25M Funding,” July 13,
2021, https://www.uktech.news/news/heart-aerospace-eyes-
short-haul-electric-planes-in-uk-20210713. T. Rucinski and N.
Nishant, “Archer to Go Public, United Airlines Invests and Orders
Electric Aircraft,” Reuters, October 2, 2021, https://www.reuters.
com/business/archer-go-public-united-airlines-invests-orders-
electric-aircraft-2021-02-10/. DHL: https://www.reuters.com/
business/aerospace-defense/dhl-orders-12-eviation-planes-
plans-first-electric-network-2021-08-03/ UPS: T. Black, “UPS
Bets on Electric Aircraft to Get Packages to the Hinterlands,”
Bloomberg, accessed April 6, 2022, https://www.bloomberg.
com/news/articles/2021-04-07/ups-bets-on-electric-aircraft-to-
get-packages-to-the-hinterlands. Airbus advances on hydrogen-
fueled plane: Airbus, “Airbus Reveals New Zero-Emission
Concept Aircraft,” September 21, 2020, https://www.airbus.com/
en/newsroom/press-releases/2020-09-airbus-reveals-new-zero-
emission-concept-aircraft.
300 ICAO, “Global Framework for Aviation Alternative Fuels,”
accessed April 6, 2022, https://www.icao.int/environmental-
protection/GFAAF/Pages/default.aspx.
301 E. Mazareanu, “Airline Industry Worldwide - Number of Flights
2004-2022,” Statista, May 11, 2020, 2004–22, https://www.
statista.com/statistics/564769/airline-industry-number-of-flights/.
302 REN21 Policy Database, GSR Data Pack, www.ren21.net/gsr.
307 “Why automakers are driving for uniform fuel efficiency
standards”, University of Pennsylvania – Knowledge @ Wharton,
14 June 2019, Knowledge at Wharton, “Why Automakers
Are Driving for Uniform Fuel Efficiency Standards,” June
14, 2019, https://knowledge.wharton.upenn.edu/article/
end-california-emissions-standards/.
308 IEA, “Highlights – Energy Efficiency Indicators: Overview,”
accessed March 6, 2022, https://www.iea.org/reports/
energy-efficiency-indicators-overview/highlights.
309 ITF, “Is Low-Carbon Road Freight Possible?,” December 6, 2018,
https://www.itf-oecd.org/low-carbon-road-freight.
310 Global Fuel Economy Initiative, “Double Global Road Freight
Efficiency with Combined Policy Approach, Says New GFEI
Working Paper,” February 1, 2022, https://www.globalfueleconomy.
org/blog/2022/february/double-global-road-freight-efficiency-
with-combined-policy-approach-says-new-gfei-working-paper.
ITF, “Is low-carbon road freight possible?” 6 December 2018,
ITF, “Is Low-Carbon Road Freight Possible?,” December 6, 2018,
https://www.itf-oecd.org/low-carbon-road-freight. EUR-Lex
Europa, “EUR-Lex - Document 32019R1242,” accessed June 2,
2022, https://eur-lex.europa.eu/eli/reg/2019/1242/oj.
311 Our world in data, “Climate Change and Flying: What Share of
Global CO2 Emissions Come from Aviation?,” accessed April 6,
2022, https://ourworldindata.org/co2-emissions-from-aviation.
D. Habtemariam, “Global Air Traffic Growth Outpaced Capacity
Growth in 2018,” Business Travel News, February 7, 2019, https://
www.businesstravelnews.com/Global/Global-Air-Traffic-Growth-
Outpaced-Capacity-Growth-in-2018. International Airport
Review, “IATA Announces 50 per Cent Decrease in Carbon
Emissions per Passenger,” December 16, 2019, https://www.
internationalairportreview.com/news/109066/iata-50-per-cent-
decrease-carbon-emissions-per-passenger/. H. Tabuchi, “Worse
Than Anyone Expected’: Air Travel Emissions Vastly Outpace
Predictions,” The New York Times, September 29, 2019, https://
www.nytimes.com/2019/09/19/climate/air-travel-emissions.html.
312 Despite the necessary role that renewable energy would play in
decarbonising the transport sector, many adaptations of the ASI
framework have failed to include renewables or to mention the
source of energy under the improve section, focusing only on
energy efficiency.
313 C. Brand, “Seven Reasons Global Transport Is so Hard to Decarbonise,”
The Conversation, November 10, 2021, https://theconversation.com/
seven-reasons-global-transport-is-so-hard-to-decarbonise-170908.
314 Transport CO2 emissions increased at compound annual growth
rate of 1.9% between 2000 and 2018. OECD, “ITF Transport
Outlook 2021” (Paris: OECD, 2021), https://read.oecd-ilibrary.org/
transport/itf-transport-outlook-2021_16826a30-en#page24.
315 IEA, “CO2 Emissions – Global Energy Review 2021,” 2021, https://
www.iea.org/reports/global-energy-review-2021/co2-emissions.
316 OECD, “ITF Transport Outlook 2021” (Paris: OECD, 2021), https://
read.oecd-ilibrary.org/transport/itf-transport-outlook-2021_
16826a30-en#page24.
317 IEA, “Transport Sector CO2 Emissions by Mode in the Sustainable
Development Scenario, 2000-2030,” December 22, 2019, https://
www.iea.org/data-and-statistics/charts/transport-sector-
co2-emissions-by-mode-in-the-sustainable-development-
scenario-2000-2030.
318 L. Cozzi and A. Petropoulos, “Carbon Emissions Fell across All
Sectors in 2020 except for One – SUVs,” IEA, March 6, 2022,
https://www.iea.org/commentaries/carbon-emissions-fell-
across-all-sectors-in-2020-except-for-one-suvs.
https://www.iea.org/reports/tracking-transport-2021.
320 Based on first-generation NDCs. ITF, “How Transport CO2
Reduction Pledges Fall Short,” November 10, 2018, https://www.
itf-oecd.org/co2-reduction-pledges.
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321 Based on REN21 research on NDCs, from REN21 Policy Database.
See GSR 2021 Data Pack, available at www.ren21.net/gsr-2021.
https://www.iea.org/reports/tracking-transport-2021. IMO and
ICAO goals: Climate Change News, “UN Boss Calls for Stronger
Aviation and Shipping Climate Goals in Line with 1.5C,” October
14, 2021, https://www.climatechangenews.com/2021/10/14/
un-boss-calls-stronger-aviation-shipping-climate-goals-line-1-5c/.
323 At least 9 major commitments were announced. SLOCAT,
“Transport Commitments and Initiatives Launched at the UN
Climate Change Conference (COP26),” December 7, 2021, https://
slocat.net/cop26-transport-commitments/.
324 SLOCAT, “Transport Commitments and Initiatives Launched at
the UN Climate Change Conference (COP26),” December 7, 2021,
https://slocat.net/cop26-transport-commitments/.
325 SLOCAT, “Transport Commitments and Initiatives Launched at
the UN Climate Change Conference (COP26),” December 7, 2021,
https://slocat.net/cop26-transport-commitments/. SLOCAT,
“E-Mobility Trends and Targets,” accessed June 2, 2022, https://
slocat.net/e-mobility/#overview.
326 SLOCAT, “E-Mobility Trends and Targets,” accessed June 2, 2022,
https://slocat.net/e-mobility/#overview.
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02
POLICY
LANDSCAPE
POLICY LANDSCAPE
1 OECD, IEA and REN21, 2018, “Renewable Energy Policies in a
Time of Transition”
2 It is difficult to capture every policy change, so some policies may
be unintentionally omitted or incorrectly listed. This report does
not cover policies and activities related to technology transfer,
capacity building, carbon finance and Clean Development
Mechanism projects, nor does it attempt to provide a
comprehensive list of broader framework and strategic policies
– all of which are still important to renewable energy progress.
For the most part, this report also does not cover policies that are
still under discussion or formulation, except to highlight overall
trends. Information on policies comes from a wide variety of
sources, including the IEA and International Renewable Energy
Agency (IRENA) Global Renewable Energy Policies and Measures
Database, the US Database of State Incentives for Renewables
Efficiency (DSIRE), press reports, submissions from REN21
regional- and country-specific contributors and a wide range of
United Nations unpublished data. Figure 14 from REN21 Policy
Database. See Reference Table R3 in the GSR 2022 Data Pack,
www.ren21.net/gsr2022-data-pack
3 Ibid.
4 IRENA, “Energy Transition,” 2020, https://www.irena.org/
energytransition. Accessed 27 February 2022
5 Climate Watch, “Net-Zero Tracker,” 2022, https://www.
climatewatchdata.org/net-zero-tracker. Accessed 17 April
6 “National Policies to Shield Consumers from Rising
Energy Prices | Bruegel,” accessed May 4, 2022,
https://www.bruegel.org/publications/datasets/
national-policies-to-shield-consumers-from-rising-energy-prices/.
7 “Electricity – Fuels Technologies,” IEA, accessed May 4, 2022,
https://www.iea.org/fuels-and-technologies/electricity.
8 Climate Watch, “Net-Zero Tracker.” Accessed 17 April
9 Jillian Ambrose and Fiona Harvey, “Cop26 Climate Talks in Glasgow
Postponed until 2021,” The Guardian, April 1, 2020, sec. Environment,
https://www.theguardian.com/environment/2020/apr/01/uk-likely-
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11 Ibid.
12 “NDCs and Renewable Energy Targets in 2021: Are We on the
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13 Figure 15 based on the following: carbon pricing policies from World
Bank, Carbon Pricing Dashboard, https://carbonpricingdashboard.
worldbank.org/map_data, viewed 11 February2022; Net-zero
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climatewatchdata.org/net-zero-tracker. Accessed 17 April 2022;
REN21 Policy Database. See Reference Table R4 in the GSR 2022
Data Pack, www.ren21.net/gsr2022-data-pack
14 World Energy Transitions Outlook: 1.5°C Pathway. International
Renewable Energy, 2021, p. 20
15 REN21 Policy Database. See Reference Table R4 in the GSR
2022 Data Pack, www.ren21.net/gsr2022-data-pack
16 Reuters, “Zimbabwe Bolsters Emissions Targets Ahead of
Climate Summit,” September 25, 2021, https://news.trust.org/
item/20210925085507-odjji. Accessed 16 March 2022; Climate
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Gerretsen, “Lebanon Increases Climate Goal despite Political and
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Accessed 17 April 2022
18 Ibid.
19 V. Spasić, “EU Agrees on European Climate Law, Makes 2050 Net
Zero Emissions Target Legally Binding,” Balkan Green Energy
News, April 21, 2021, https://balkangreenenergynews.com/
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20 E. Cotosky, “Brazil’s President Has Committed the Country
to Become Carbon Neutral by 2050,” Climate Scorecard, July
3, 2021, https://www.climatescorecard.org/2021/07/brazils-
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26 by Pledging 50% Renewables by 2030, Net-Zero Emissions
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Accessed 17 November; Climate Watch, “NDC Enhancement
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21 Figure 16 from REN21 Policy Database. See Reference Table R4
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net-zero-tracker. Accessed 17 April 2022
22 Ibid.
23 “Infographic: The Road to Net Zero,” Statista Infographics,
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24 REN21, op. cit. note 17, “Net-Zero Tracker, op. cit. note 17.
25 World Bank, “Carbon Pricing Dashboard,” accessed February 27,
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26 C. Gannett and D.D. Green, “Washington State Enacts Cap-and-
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27 R. Roldao, “Carbon Trading the Chinese Way,” Energy Monitor,
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29 Box 6 and Table 3 from “National Policies to Shield Consumers
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250
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30 REN21 Policy Database. See Reference Tables R3 – R13 in
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31 K. Joshi, “Indonesia Begins First Slow Steps towards Ditching
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32 Bloomberg NEF, “Climatescope 2021 | Bulgaria, https://
global-climatescope.org/markets/bg/; D. Vetter, “U.K. To
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33 Karim, “Bangladesh Scraps Plans to Build 10 Coal-Fired Power
Plants.”; VanderHart, “Oregon Lawmakers Approve Ambitious
Carbon-Reduction Goals for State Energy Grid.”;Balaraman,
“Oregon Leaps Past California and Washington as Legislators
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Op. cite. Note 30; Vetter, “U.K. To End All Coal Power In 2024,
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34 Countries that pledged to quit coal at COP include: Albania,
Azerbaijan, Belgium, Botswana, Brunei Darussalam, Canada,
Chile, Côte d’Ivoire, Croatia, Cyprus, Denmark, Ecuador, Egypt,
Finland, France, Germany, Hungary, Indonesia, Ireland, Israel,
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35 G. Errard, “Le Chauffage Au Gaz Interdit Dans Les Logements
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36 E. Chung, “Why Oil and Gas Heating Bans for New Homes Are a
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37 REN21 Policy Database. See Reference Tables R3 – R13 in the
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38 C. Van-Ristell, “UK Government Publishes First Ever Transport
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39 A.H. Min and M. Mohan, “Singapore Unveils Green Plan 2030,
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40 Guest Contributor, “Over 25 Countries US States Planning Gas-
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41 Al Jazeera, “‘Game-Changer’: China to Stop Funding Overseas
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42 Gerretsen, “Spain to End Fossil Fuel Production by 2042 under
New Climate Law.”
43 Prime Minister of Canada, “Prime Minister Trudeau Announces
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44 Figure 17 from REN21 Policy Database. See Reference Tables R3
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45 Ibid.
46 Ibid.
47 Ibid.
48 Ibid.
49 Ibid.
50 Ibid.
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56 Based on the examples cited throughout the text.
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99 Ibid.
100 Ibid.
101 Julia Simon, “Misinformation Is Derailing Renewable Energy
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120 Ibid.
121 IEA, “Renewable Heat – Renewables 2020 – Analysis,” 2021,
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122 IEA, “Renewables 2021 - Analysis and Forecast to 2026.”
123 “Why Buildings? Our Key Messages | Globalabc,” accessed
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129 Ibid
130 Four countries had updated their heating and/or cooling
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131 Le gouvernement luxembourgeois, “Aides Financières Pour
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134 Ibid.
135 Māori Public Housing Renewable Energy Fund, May 2021,
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138 500,000 home energy upgrades under residential retrofit
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148 Global Alliance for Buildings and Construction, “2021 Global
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149 Figure 20 from Ibid.
150 Ibid.
151 “China Issues Mandatory National Standards for Energy
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153 Ibid.
154 “NDCs and Renewable Energy Targets in 2021: Are We on
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155 SLOCAT, “Avoid-Shift-Improve Refocusing Strategy”, https://slocat.
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156 “Decarbonising Transport – A Better, Greener Britain,” n.d., 216.
158 Republic of Sudan and UNFCCC, “Sudan’s Updated First
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releases-ev-policy-e-rickshaws/.; R. Nair, “Gujarat Unveils Electric
Vehicle Policy with Plans to Add 200,000 EVs by 2025,” Mercom
India, June 23, 2021, https://mercomindia.com/gujarat-unveils-
electric-vehicle-policy/.; “CEC Approves $1.4 Billion Plan for
Zero-Emission Transportation Infrastructure and Manufacturing.”
California Energy Commission, 2021.https://www.energy.ca.gov/
news/2021-11/cec-approves-14-billion-plan-zero-emission-
transportation-infrastructure-and. Accessed 20 November 2021;
“50 States of Electric Vehicles: Q3 2021 Quarterly Report” (NC
Clean Energy, November 2021), https://static1.squarespace.
com/static/5ac5143f9d5abb8923a86849/t/6181e5a5e794dc
2c370f1292/1635902890108/Q3-21_EV_execsummary_Final.
pdf.; The White House, “FACT SHEET: The Biden-Harris Electric
Vehicle Charging Action Plan,” December 13, 2021, https://www.
whitehouse.gov/briefing-room/statements-releases/2021/12/13/
fact-sheet-the-biden-harris-electric-vehicle-charging-
action-plan/; The White House, “Fact Sheet: The Bipartisan
Infrastructure Deal.”; Van-Ristell, “UK Government Publishes
First Ever Transport Decarbonisation Plan.”; Min and Mohan,
“Singapore Unveils Green Plan 2030, Outlines Green Targets
for next 10 Years.”; Government of Singapore, “Singapore Green
Plan 2030.”; OnlineKhabar English News, “You Can Install a
Charging Station inside Your House for Your EV from Now
Onwards,” accessed May 24, 2022, https://english.onlinekhabar.
com/private-charging-station.html.; “Providing for a policy
framework on the guidelines for the development, establishment
and operation of electronic vehicle charging stations(EVCS) in the
Philippines”. Philippines Department of Energy, 2021. dc2021-07-
0023.pdf. Accessed 17 April 2022.
172 Reuters, “Indonesia Aims to Sell Only Electric-Powered Cars,
Motorbikes by 2050,” June 14, 2021, https://www.reuters.com/
business/sustainable-business/indonesia-aims-sell-only-
electric-powered-cars-motorbikes-by-2050-2021-06-14/.
173 Dennis and Grandoni, “Biden to Boost Electric Cars by 2030 with
Executive Order.” Jack Ewing, “President Biden sets a goal of 50
percent electric vehicle sales by 2030.” New York Times, 2021.
https://www.nytimes.com/2021/08/05/business/biden-electric-
vehicles.html. Accessed 14 August 2021. Shepardson and Mason,
“Biden Seeks to Make Half of New U.S. Auto Fleet Electric by 2030.”
174 A.H. Min and M. Mohan, “Singapore Unveils Green Plan 2030,
Outlines Green Targets for next 10 Years,” CNA, February
10, 2021, https://www.channelnewsasia.com/singapore/
singapore-green-plan-2030-targets-10-years-1883021
175 Shaina Luck, “Nova Scotia to offer rebates for electric vehicles,
home energy upgrades. CBC News, 2021. https://www-cbc-ca.
cdn.ampproject.org/c/s/www.cbc.ca/amp/1.5925966;Accessed
3 March 2021
176 Shaina Luck, “Nova Scotia to offer rebates for electric vehicles,
home energy upgrades. CBC News, 2021. https://www-cbc-ca.
cdn.ampproject.org/c/s/www.cbc.ca/amp/1.5925966;Accessed
3 March 2021
177 Mazengarb, “NSW Unveils $490 Million Support Package for
Electric Vehicles, Waives Stamp Duty on New Sales.”
178 Nair, “Gujarat Unveils Electric Vehicle Policy with Plans to Add
200,000 EVs by 2025.”
179 Snapshot Mauritius from Central Electricity Board
(CEB) of the Government of Mauritius, “CEB SOLAR PV
SCHEME FOR CHARGING OF EVS,” 2021, https://ceb.
mu/projects/ceb-solar-pv-scheme-for-charging-of-evs. M.
Hall, “Mauritius Unveils New Home and Business Rooftop
Solar Programs,” pv magazine International, December
257
BACK

02
POLICY
LANDSCAPE
mauritius-unveils-new-home-and-business-rooftop-solar-
programs/.; S. Shetty, “Mauritius Launches Solar PV Systems for
Domestic Customers and Charging of EVs,” SolarQuarter, July 12,
2021, https://solarquarter.com/2021/12/07/mauritius-launches-
solar-pv-systems-for-domestic-customers-and-charging-of-evs/.
2022 Data Pack for detail
181 I. Todorović, “Romania Allocates EUR 3.9 Billion from EU
Recovery Funds to Zero Carbon Railway,” Balkan Green Energy
News, September 30, 2021, https://balkangreenenergynews.
com/romania-allocates-eur-3-9-billion-from-eu-recovery-
funds-to-zero-carbon-railway/?utm_source=phplist437utm_
medium=emailutm_content=HTMLutm_campaign=Newslett
er+October+06%2C+2021+-+Balkan+Green+Energy+News.
182 J. Stein, “Rail Electrification Project Gets £78m
Funding,” Construction News, September 1, 2021,
https://www.constructionnews.co.uk/civils/
rail-electrification-project-gets-78m-funding-01-09-2021/.
2022 Data Pack for detail; N.J. Kurmayer and S.G. Carroll,
“Germany Charges Ahead in Decarbonising Domestic Flights
with New E-Fuel Roadmap,” Euroactiv, May 11, 2021, https://www.
euractiv.com/section/aviation/news/germany-charges-ahead-in-
decarbonising-domestic-flights-with-new-e-fuel-roadmap/.
185 F.V. Fernandes, “Portugal Creates Carbon Taxes on Air and Sea
Travel,” Lexology, 2021, https://www.lexology.com/library/detail.
aspx?g=f06ef6a3-0c3f-48a3-9e3a-64429d17208futm_source
=Lexology+Daily+Newsfeedutm_medium=HTML+email+-
+Body+-+General+sectionutm_campaign=Lexology+
subscriber+daily+feedutm_content=Lexology+Daily+New
sfeed+2021-04-21utm_term=. Van-Ristell, “UK Government
Publishes First Ever Transport Decarbonisation Plan.”
186 Department of Energy, “DOE Announces Nearly $83 Million to
Increase Building Energy Efficiency and Cut Consumers’ Energy Bills.”
187 Federal Aviation Administration, “Aviation Climate Action
Plan,” November 9, 2021, https://www.faa.gov/sustainability/
aviation-climate-action-plan.
188 E Krukowska, “EU Carbon Market to Expand to Shipping, Housing
and Transport,” BNN Bloomberg, accessed May 24, 2022, https://
www.bnnbloomberg.ca/eu-carbon-market-to-expand-to-
shipping-housing-and-transport-1.1622039.
190 Four countries passed new policies in 2021; however, the total
remains 30 countries as several countries had to be removed due
to revised methodology. REN21 Policy Database. See Reference
Table R11 in the GSR 2022 Data Pack, www.ren21.net/gsr-2022
191 Epp, “Uncapped Funding for Large Solar Heat Plants in Austria.”
192 “Call for Renewable Heat Projects in Spain Allocates EUR 108
Million,” Solarthermalworld (blog), accessed May 24, 2022,
https://solarthermalworld.org/news/eu-fund-allocates-eur-108-
million-for-ci-renewable-heat-projects/.
193 Netherlands Enterprise Agency, “SDE++ 2021, Stimulation
of Sustainable Energy Production and Climate Transition”.
Netherlands Enterprise Agency,” 2021, https://english.rvo.nl/sites/
default/files/2021/10/SDEplusplus_oktober_2021_ENG.pdf.
194 IRENA, “World Energy Transition Outlook,” 2021, https://irena.
org/-/media/Files/IRENA/Agency/Publication/2021/Jun/
IRENA_World_Energy_Transitions_Outlook_2021.pdf.
195 BNN Bloomberg, “Saudi Arabia’s Bold Plan to Rule the $700
Billion Hydrogen Market,” 2021, https://www.bnnbloomberg.
ca/saudi-arabia-s-bold-plan-to-rule-the-700-billion-hydrogen-
market-1.1573265.
196 Figure 23 from REN21 Policy Database. See GSR 2022 Data Pack
for detail.
197 Ibid.
198 Reuters, “German Government Pledges Ongoing
Support for Hydrogen Build-Up,” September 22, 2021,
https://www.reuters.com/business/energy/german-
government-pledges-ongoing-support-hydrogen-
build-up-2021-09-22/.; L. Paddison, “Oman Plans to Build
World’s Largest Green Hydrogen Plant,” The Guardian, May
27, 2021, https://www.theguardian.com/world/2021/may/27/
oman-plans-to-build-worlds-largest-green-hydrogen-plant.
199 Renewable Energy News, “Uzbekistan Reveals Hydrogen and
Renewables Strategy,” September 4, 2021, https://renews.biz/
67800/uzbekistan-reveals-hydrogen-and-renewables-strategy/.
200 ET EnergyWorld, “Spain to Invest 1.5 Bn Euros in ‘Green
Hydrogen,’” May 25, 2021, https://energy.economictimes.
indiatimes.com/news/renewable/spain-to-invest-1-5-bn-euros-
in-green-hydrogen/82928466?redirect=1.; Reuters, “German
Government Pledges Ongoing Support for Hydrogen Build-Up.”
201 The European Files, “The Portuguese Hydrogen Strategy
to Decarbonise Its Economy: The Project to Produce Green
Hydrogen by Electrolysis,” February 22, 2021, https://www.
europeanfiles.eu/energy/the-portuguese-hydrogen-strategy-
to-decarbonise-its-economy-the-project-to-produce-green-
hydrogen-by-electrolysis.
202 G. Parkinson, “NSW Unveils $80 Billion Green Hydrogen Strategy,
with Incentives to Plug into Grid,” RenewEconomy, October 13,
2021, https://reneweconomy.com.au/nsw-unveils-80-billion-
green-hydrogen-strategy-with-incentives-to-plug-into-grid/.
203 IRENA and FAO, “Renewable Energy for Agri-Food Systems: Towards
the Sustainable Development Goals and the Paris Agreement,” 2021,
https://www.fao.org/documents/card/en/c/cb7433en.
204 Ibid.
205 “Renewable energy for agri-food systems – Towards the
Sustainable Development Goals and the Paris agreement.” IRENA
and FAO, 2021. Abu Dhabi and Rome. https://doi.org/10.4060/
cb7433en. Accessed 26 March 2022.; “Formulation and
implementation of renewable energy program for the agri-fishery
sector (REPAFS)”. Philippines Department of Agriculture, 2021.
www.da.gov.ph/wp-content/uploads/2021/03/jmc01_s2021.pdf.
Accessed 26 March 2022
206 E. Bellini, “Japan Releases New Guidelines for Agrivoltaics as
Installations Hit 200 MW,” pv magazine International, December
13, 2021, https://www.pv-magazine.com/2021/12/13/japan-
releases-new-guidelines-for-agrivoltaics-as-installations-hit-
200-mw/.
207 U. Gupta, “Indian State of Maharashtra Tenders 1.3 GW Solar
for Agriculture,” PV Magazine International, April 27, 2021,
https://www.pv-magazine.com/2021/04/27/indian-state-of-
maharashtra-tenders-1-3-gw-solar-for-agriculture/.
208 E. Bellini, “Israeli Government Wants to Boost Development of
Agrivoltaics,” pv magazine International, February 1, 2021, https://
www.pv-magazine.com/2021/02/01/israeli-government-wants-
to-boost-development-of-agrivoltaics/.; “Nationally Determined
Contributions: Bangladesh (Updated).” Bangladesh Ministry of
Environment, Forest and Climate Change, 2021. Accessed 26
March 2022. ; P. S. Molina, “Portugal Kicks off €10 Million Call for
Agrivoltaics,” pv magazine International, May 21, 2021, https://
www.pv-magazine.com/2021/05/21/portugal-launches-e10-
million-call-for-agrivoltaics/.; IRENA and FAO, “Renewable Energy
for Agri-Food Systems: Towards the Sustainable Development
Goals and the Paris Agreement.”
258
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ENDNOTES · MARKET AND INDUSTRY TRENDS · BIOENERGY
03
ENDNOTES
I
MARKET
AND
INDUSTRY
TRENDS
BIOENERGY
1 International Energy Agency (IEA), Energy Technology
Perspectives 2020, 2020, https://www.iea.org/reports/energy-
technology-perspectives-2020/etp-model. 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”.
2 International Renewable Energy Agency (IRENA), Recycle: Bioenergy
– A Report for the G20 Energy Sustainability Working Group,
September 2020, https://www.irena.org/publications/2020/Sep/
Recycle-Bioenergy.
3 Ibid.
4 For example the European Commission has doubled its objective
for biomethane production from agricultural waste to 35 billion
cubic metres per year by 2030 to help offset problems due to the
current energy crisis. IEA Bioenergy, “Contribution of Biomass
Supply Chains to the Sustainable Development Goals When
Implemented for Bioenergy Production,” 2021, https://www.
ieabioenergy.com/blog/publications/contribution-of-biomass-
supply-chains-to-the-sustainable-development-goals-when-
implemented-for-bioenergy-production.
5 IRENA, op. cit. note 2, p. 20.
6 Ibid.
7
Figure 24 estimated shares based on IEA data.
8 Based on “Annex A, World Balance” in IEA, World Energy
Outlook 2020, October 2020, https://www.iea.org/reports/
world-energy-outlook-2020.
9 IEA, Renewables 2018, 2018, https://www.iea.org/reports/
renewables-2018.
10 Ibid. Based on data used for Figure 24.
11 See references for Figure 24, op. cit. note 7.
12 Based on data in IEA Renewables datafiles and on national data
including from US Energy Information Administration (EIA),
“US Energy Information Monthly Energy Review – February
2022 – Tables 10.3 and 10.4c,” March 1, 2022, https://www.eia.
gov/totalenergy/data/monthly/pdf/mer.pdf and from Dados
Estatisticos – Portugues (Brazil), www.br.govee.
13 Overall capacity data based on national information reported below
and for other countries based on projected data for 2021 from IEA,
“Renewables 2021 Dataset,” 2021, https://www.iea.org/data-and-
statistics/data-product/renewables-2021-dataset. Overall generation
data based on national information reported below and for other
countries based on projected data for 2021 from IEA, idem.
14 Traditional biomass provided 26.2 EJ in 2010 and 24.1 EJ in 2020.
IEA, World Energy Outlook 2021, October 2021, https://www.
iea.org/reports/world-energy-outlook-2021; IRENA, IEA and
Renewable Energy Policy Network for the 21st Century (REN21),
Renewable Energy Polices in a Time of Transition: Heating and
Cooling, 2020, https://www.irena.org/-/media/Files/IRENA/
Agency/Publication/2020/Nov/IRENA_IEA_REN21_Policies_
Heating_Cooling_2020.pdf.
15 IEA et al., Tracking SDG 7: The Energy Progress Report, 2021,
https://iea.blob.core.windows.net/assets/b731428f-244d-450c-
8734-af19689d7ab8/2021_tracking_SDG7.pdf.
16 Household air pollution from polluting cookstoves is linked
directly to 2.5 million premature deaths annually (equal to the
combined total of deaths from malaria, tuberculosis and HIV/
AIDS). In addition, the low efficiency of cooking stoves and
charcoal production means that fuel requirements are high
and often exceed local sustainable supply, leading to pressure
on local forestry resources and damage to local forests, with
27-34% of wood-fuel harvesting in tropical regions classified as
unsustainable. The collection of biomasses, such as firewood, for
cooking is very time consuming and has a high opportunity cost,
as the time spent gathering fuelwood takes time away time from
other income-generating activities and education. These issues
disproportionately affect women and children, as they are the
ones often tasked with the cooking and fuel collection. IEA et al.,
op. cit. note 15.
17
Box 7 from the following sources: IEA, World Energy Outlook Special
Report: Prospects for Biogas and Biomethane, 2020, https://www.
iea.org/reports/outlook-for-biogas-and-biomethane-prospects-
for-organic-growth. Total biomethane production is estimated at
35 million tonnes of oil equivalent (mtoe) (1.05 EJ), compared to
2018 overall global gas demand of 3,284 mtoe (137 EJ). CEDIGAZ,
Global Biomethane Market Rep

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