Medium-Term Renewable Energy Market Report 2013

Renewable Energy Market Trends and Projections to 2018

Overview

Renewable electricity generation saw significant growth in 2012, driven by strong deployment in various markets. However, the development of renewable energy faces increasing complexity due to policy uncertainties, economic challenges, and competition from other energy sources. Despite these challenges, the underlying fundamentals for renewable energy deployment remain strong.

Key Data Points

• Global New Investment in Renewable Energy: Fell in 2012 despite remaining high.
• Policy Uncertainties and Economic Challenges: Led to reduced investor confidence in certain markets.
• Integration Issues: Countries and regions struggled to integrate variable renewable sources into their power grids.
• Industry Turbulence: The renewable manufacturing industry, particularly solar and wind, experienced deeper periods of restructuring and consolidation.

Positive Developments

• Emerging Markets: Renewables are gaining traction in both traditional and new markets.
• Non-OECD Countries: Increasingly driving overall growth in renewable power.
• Biofuels and Heat: Roles are expanding, though at slower rates compared to renewable electricity.

Market Analysis and Projections

The Medium-Term Renewable Energy Market Report 2013 analyzes the trends, drivers, and challenges for the renewable electricity, biofuels for transport, and renewable heat sectors. It provides forecasts through 2018 for a range of countries in the OECD and non-OECD, along with an outlook for renewable electricity technologies, global biofuels supply, and renewable heat prospects.

Key Drivers and Challenges

• Competitive Opportunities: Renewables are becoming increasingly competitive in various markets.
• OECD vs. Non-OECD: OECD countries remain key drivers, while non-OECD countries are rapidly growing.
• Policy Uncertainty: A major barrier to investor confidence, especially among OECD countries.
• System Integration: The challenge of integrating higher shares of variable renewables like wind and solar.

Biofuels and Heat

• Biofuels for Transport: Need to scale up significantly to meet low-carbon scenarios.
• Renewable Heat: Requires greater progress in scaling up and advancing technologies.

Conclusion

Despite challenges, the renewable energy sector continues to show strong growth and competitiveness. Policy stability and long-term commitment are essential to sustain this momentum and address the integration of variable renewable sources. This report provides critical insights and projections for policymakers, investors, and other stakeholders to make informed decisions in the fast-growing and dynamic renewable energy sector.