“This fourth edition of REN21’s renewable energy report comes in the midst of an historic and global economic crisis. Although the future is unclear, there is much in the report for optimism,” said Chairman of REN21 Mohamed El-Ashry.

The report found that global power capacity from new renewable energy sources (excluding large hydro power) reached 280,000 MW in 2008, representing a 16 per cent rise compared with 2007 figures, and nearly three times the capacity of the United States nuclear sector.

Solar heating capacity increased by 15 per cent, while biodiesel and ethanol production both increased by 34 per cent. More renewable energy than conventional power capacity was added in both the European Union and United States for the first time ever.

“The recent growth of the sector has surpassed all predictions, even those made by the industry itself,” said Mr El-Ashry.

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At least 73 countries have renewable energy policy targets, up from 66 at the end of 2007. In response to the financial crisis, several governments have directed economic stimulus funding towards the renewable energy sector.

Mr El-Ashry stressed the importance of upholding policies that support the renewable energy sector.

Highlights from the report include:

Wind

  • Existing wind power capacity grew by 29 per cent in 2008 to reach 121 GW, or more than double the 59 GW of capacity in place at the end of 2005.

  • China doubled its wind power capacity for the fifth year in a row, ending 2008 at 12 GW, surpassing its 2010 development target of 10 GW two years early.

Solar

  • Grid-connected solar photovoltaic (PV) continued to be the fastest growing power generation technology, with a 70 per cent increase in existing capacity to reach 13 GW.

  • Spain became the PV market leader, with 2.6 GW of new grid-tied installations.

  • The concentrating solar power industry saw many new entrants and new manufacturing facilities in 2008.

  • Solar hot water in Germany set record growth in 2008, with over 200,000 systems installed.

Geothermal

  • Geothermal power capacity surpassed 10 GW in 2008, led by the United States.

  • Direct geothermal energy (ground source heat pumps) is now used in at least 76 countries.

Companies

  • India emerged in 2008 as a major producer of solar PV, with new policies leading to $18 billion in new manufacturing investment plans or proposals by a number of companies.

Policy

  • Among the many new renewable energy targets set in 2008, Australia targeted 45 terawatt-hours (TWh) of electricity by 2020. Through to 2030, Brazil’s energy plan seeks to increase its existing share of primary energy from renewable energy (46 per cent in 2007) as well as its electricity share (87 per cent in 2007). India increased its target to 14 GW of new renewables capacity by 2012. Japan set new targets for 14 GW of solar PV by 2020 and 53 GW by 2030. The European Union formally adopted its target to reach a 20 per cent share of renewable energy in final consumption by 2020, setting also country-specific targets for all member states.

  • At least 64 countries now have some type of policy to promote renewable power generation.

  • Feed-in tariffs were adopted at the national level in at least five countries for the first time in 2008 or early 2009, including Kenya, the Philippines, Poland, South Africa, and Ukraine.

  • Several hundred cities and local governments around the world are actively planning or implementing renewable energy policies and planning frameworks linked to carbon dioxide emissions reduction.

REN21 aims to link the energy, development and environment sectors, and to strengthen the influence of the renewable energy community that came together at the Renewables 2004 conference that took place in June 2004 in Bonn, Germany.