A new report from the International Energy Agency (IEA), stating that global power generation from hydro, wind, solar and other renewable sources will exceed that of gas and be twice that of nuclear by 2016, is receiving widespread news coverage.
According to the report, renewables are now the fastest-growing power generation sector and will make up almost a quarter of the global power mix by 2018, up from an estimated 20 percent in 2011.
According to an IEA press release, the report warns that renewable development is becoming more complex and faces challenges—especially in the policy arena.
Van der Hoeven added “policy uncertainty is public enemy number one” for investors.
“Many renewables no longer require high economic incentives. But they do still need long-term policies that provide a predictable and reliable market and regulatory framework compatible with societal goals,” she said. “And worldwide subsidies for fossil fuels remain six times higher than economic incentives for renewables.”