2020 was a record year for renewable energy despite early setbacks relating to the COVID-19 pandemic. The International Energy Agency (IEA) reported that net installed renewable capacity grew by nearly 4 percent and accounted for almost 90 percent of the increase in total power capacity worldwide. This growth was driven in part by the United States, where large-scale capacity additions grew at a record pace, and local governments invested in more renewable energy than ever before. These trends will likely continue as state and local governments ramp up efforts to achieve 2030 and 2050 emission reduction targets.
The COVID-19 pandemic was expected to delay renewable projects that had planned operational dates in 2020. Many government-mandated quarantines included construction suspensions which slowed renewable infrastructure development for the first half of 2020. However, in late 2020 IEA had to revise their May 2020 forecast for renewable capacity additions for the year. Construction activity in the United States unexpectedly ramped up in the second half of 2020 as restrictions started to ease, pointing to a fast recovery from pandemic delays. The Institute for Energy Economics and Financial Analysis (IEEFA) reported on a utility-scale construction boom in the United States which led to 17 gigawatts (GW) of renewable energy added in 2020; an 85 percent increase in added capacity compared to 2019. Total solar capacity alone more than doubled to 11 GW.
As more renewable capacity is installed in 2021, local governments in the United States are procuring renewable energy at a record level. According to the American Cities Climate Challenge Transaction Tracker, local governments built 3.7 GW of new renewables in 2020, compared to 2.9 GW in 2019. That is a 23 percent increase from 2019, and 207 percent increase from 2017. Despite cities facing severe budget shortfalls due to the COVID-19 pandemic, local governments are continuing to procure renewable energy—a promising sign for emission reduction targets across the nation.
Renewable energy investments are forecasted to continue their growth through the next few years. The Energy Information Administration’s (EIA) Short Term Energy Outlook forecasts the share of total electric power generated with solar and wind capacity to increase from 20 percent in 2020 to 21 percent in 2021 and 22 percent in 2022. At the same time, EIA expects the share of electric power generated with gas to fall from 36 percent in 2021 to 35 percent in 2022, driven primarily by rising gas prices and new additions of solar and wind generating capacity.
In 2020, renewable energy projects weathered unexpected stoppages and still emerged with record growth. This highlights the resiliency of renewable energy investments, and the significant progress being made towards emission targets in the United States.
