By Justin Wong
“2015 was a record year for renewables,” said Dr Fatih Birol, Executive Director of the International Energy Agency (IEA) as he launched the IEA Medium-Term Renewable Energy Market Report 2016 at SIEW Energy Insights.
Dr Birol attributed this success to two factors: the cost of renewables coming down, and strong renewable policies provided by governments. “For the first time, the addition of renewables [capacity] surpassed fossil fuels and nuclear,” said Dr Paolo Frankl, head of the IEA’s renewable division. Renewables like wind and solar are projected to grow in the double digits, making them the fastest growing energy option.
However, Dr Frankl acknowledged that this will not be sufficient to achieve the 2°C climate change target, as policy uncertainty, grid integration issues and financing are limiting growth. When it comes to decarbonisation, biofuels will be critical for transforming the transport sector. “The transport sector is the most difficult to decarbonise,” and “with no policy intervention, advanced biofuels will not progress”. The decarbonisation of heating will also be important, as heating is one of the most significant contributors to carbon dioxide emissions.
Dr Birol concluded the session by encouraging governments, especially those in the ASEAN region, to put in place attractive investment and policy frameworks to promote the growth of renewables over coal and gas.