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markets, policy changes and uncertainties (such as unexpected
or retroactive changes, new taxes on renewable generators and
uncertainties around the US federal Production Tax Credit for
most of the year) undermined investor confidence and held up
investment and deployment. 35 Despite the important contribution
of the heating and transport sectors to energy demand and
global emissions – together these sectors account for about
two-thirds of final energy consumption and more than half of
global greenhouse gas emissions – policy makers have focused
predominantly on the power sector, a trend that has helped to
shape the current landscape. 36
in total final energy consumption is not growing as quickly. In
developed countries, energy demand growth is slow, and displacing
the large stock of existing infrastructure and fuels takes
time. In developing countries, energy demand growth is rapid,
and fossil fuels play a significant part in meeting this rising
demand. In addition, the shift away from traditional biomass for
heating and cooking to modern, more-efficient renewables and
fossil fuels, while in general a very positive transition, reduces
overall renewable energy shares. 33 These “two worlds” into which
modern renewables are making inroads present different political
and policy challenges, economic structures, financial needs and
availability, and other factors that delay or advance renewable
energy deployment. 34
Government policy continued to play an important role in renewable
energy developments. The number of countries with renewable
energy targets and support policies increased again in
2015, and several jurisdictions made their existing targets more
ambitious. (p See Policy Landscape chapter.) However, in some
Even in the face of ongoing fossil fuel subsidies and tumbling
prices in 2015, renewable energy continued its rapid growth in
both capacity added and energy produced. The power sector
experienced the greatest increases in capacity, whereas growth
of renewables in the heating and cooling and transport sectors
was comparatively slow. 37 Solar photovoltaics (PV) and wind
were the most dynamic markets, and hydropower continued to
provide the majority of renewable power capacity and generation.
Bioenergy remained the leader by far in the heat (buildings
and industry) and transport sectors. 38
Growth rates for various renewable energy technologies reflect a
number of factors, including falling renewable energy technology
costs and increasing competition for policy support and investment
among different renewable technologies. 39 Low fossil fuel
prices also affected growth rates, causing turbulence in some
markets, particularly for renewable heating and cooling; biofuels
were sheltered in many locations where mandates exist, although
the low oil prices affected the appetite for new investment. 40
(p See Figure 2 and Reference Table R1.)
Figure 2. Average Annual Growth Rates of Renewable Energy Capacity and Biofuels Production,
End-2010 to End-2015
%
Growth Rate in 2015
40
Growth Rate End-2010 Through 2015
Source:
See endnote 40
for this chapter.
30
28
20
10
0
2.4 2.7
17
9.7
6
3.9
3.7 2.9 42 35 17 12
3
6.5
-0.9
01
-10
Geothermal
power
Hydropower
Solar PV CSP Wind
Solar
heating
Ethanol
production
Biodiesel
production
Power Heating Transport
RENEWABLES 2016 · GLOBAL STATUS REPORT
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