Earlier this week International Energy Agency (IEA) issued its Medium-Term Renewable Energy Market Report 2016 showing that the world installed 153 gigawatts of renewable energy in 2015 and that wind and solar will grow from 13 percent of new energy installed now to 60 percent of new energy deployed annually by 2021. Now the Energy Watch Group is challenging those claims, calling it old wine in new bottles.
“In the last 10 years, the IEA has been making misleading projections for solar PV and wind, as well as e-mobility, ignoring the radical price fall in these sectors. This appears as an attempt of protecting fossil fuel business that has come under economic pressure,” contended Energy Watch Group President and former Member of the German Parliament Hans-Josef Fell. “We call on the IEA to urgently review its assumptions and to finally make realistic projections in its forthcoming World Energy Outlook.”
In the report, the IEA said that solar power installations would peak in 2015 and 2016 and would not grow anymore. The Energy Watch Group challenged that.
“The IEA is playing a dangerous game using misleading assumptions in its renewables projections. Although solar PV and wind are already the lowest cost sources of electricity in many regions in the world, the IEA continues to project that annual installations in these two sectors would not grow in the coming five years compared to the already achieved levels in 2015 and 2016,” said Professor of Solar Economy at Lappeenranta University of Technology in Finland and Chairman of the EWG scientific board Christian Breyer.
The Energy Watch Group said IEA’s investment cost assumptions for solar in major markets for 2016 are at least 20 percent higher than they are in reality. While the IEA said solar costs in leading markets like China and Germany should not be lower than $1,150 to $1,300 per kilowatt. The organization said that in reality prices are already 35 percent to 40 percent lower than that. For instance, current prices for PV power plants in India are already significantly lower, at about $750 per kilowatt.Tweet