2j7YOwO

01 GLOBAL OVERVIEW
of solar cells and modules, floating wind turbines, large-scale
solar thermal district heating and cooling, and progress in
pyrolysis and gasification of biomass. Ongoing energy efficiency
advances, such as more-efficient lighting systems, are reducing
the cost of providing energy services with renewable energy,
whether on-grid or off-grid. 71 (p See Distributed Renewable
Energy and Energy Efficiency chapters.)
The year also brought advances in enabling technologies,
such as hardware and software to support the integration of
renewable energy. These included management systems that
aim to optimise performance and energy storage. 72 The past
few years have brought significant progress in the development
and commercialisation of energy storage, driven largely by the
growth in electric vehicle (EV) markets and in renewables (mainly
solar and wind power). Development continued during 2015 in
areas such as thermal storage for heating and refrigeration,
and particularly for concentrating solar thermal power (CSP);
conversion of electricity to heat or gas; compressed air; and
batteries for EV propulsion and electricity storage. 73
Batteries – including lithium-ion, graphene polymer and redox
flow batteries – have been the main focus of investor and industry
interest in storage. 74 Although cost remains a barrier to largescale
deployment, battery costs fell rapidly during 2010–2014,
and their decline accelerated in 2015. For example, average costs
for EV (lithium-ion) batteries fell 35% between the second half of
2014 and the second half of 2015. 75
Modern renewable energy is being used increasingly in power
generation, heating and cooling, and transport. The following
sections discuss 2015 developments and trends in these sectors.
For discussion of off-grid renewables for providing energy access
in developing countries, see the Distributed Renewable Energy
chapter.
POWER SECTOR
Renewable power generating capacity saw its largest annual
increase ever in 2015, with an estimated 147 GW of renewable
capacity added. Total global capacity was up almost 9% over 2014,
to an estimated 1,849 GW at year’s end. 76 Wind and solar PV both
saw record additions for the second consecutive year, together
making up about 77% of all renewable power capacity added in
2015. 77 Hydropower capacity rose by 2.7% to an estimated 1,064
GW, accounting for approximately 19% of additions. 78 (RSee
Reference Table R1.)
The world now adds more renewable power capacity annually
than it adds (net) capacity from all fossil fuels combined. 79 In 2015,
renewables accounted for an estimated more than 60% of net
additions to global power generating capacity, and for far higher
shares of capacity added in several countries around the world. 80
By year’s end, renewables comprised an estimated 28.9% of
the world’s power generating capacity – enough to supply an
estimated 23.7% of global electricity, with hydropower providing
about 16.6%. 81 (p See Figure 3.)
Technological advances, expansion into new markets with better
resources, and improved financing conditions have reduced
costs, particularly for wind and solar PV. 82 (p See Sidebar 3.)
Electricity from hydro, geothermal and some biomass power
sources have been broadly competitive with fossil power for
some time; in favourable circumstances (i.e., good resources
and a secure regulatory framework), onshore wind and solar PV
also are cost-competitive with new fossil capacity, even without
accounting for externalities. 83 For example, wind power was the
most cost-effective option for new grid-based power in 2015 in
many markets, including Canada, Mexico, New Zealand, South
Africa, Turkey, and parts of Australia, China and the United
States. 84
Expectations of further improvements were made evident in
power auctions in 2015 and early 2016, with very low tendergenerated
prices for wind power in, for example, Egypt, Mexico,
Morocco and Peru, and for solar PV in Chile, India, Mexico, Peru
Figure 3. Estimated Renewable Energy Share of Global Electricity Production, End–2015
Non-renewables
76.3%
Hydropower
16.6%
Wind 3.7%
Source:
See endnote 81
for this chapter.
Renewable
electricity
23.7%
Bio-power 2.0%
Solar PV 1.2%
Geothermal,
CSP and
ocean 0.4%
Based on renewable generating capacity at year-end 2015.
Percentages do not add up internally due to rounding.
32