As renewables boom, governments need to plan for a new power system
Renewables are now attracting the majority of new power investments and have expanded at approximately 25% annually in the last five years in the G20.
Continuously falling technology costs have supported this strong growth and in some countries renewable energy passed a tipping point, reaching cost-competitiveness with conventional energy sources.
“Even with falling prices, a supportive policy environment is needed to arrive at transparent and reliable legislation”, says Jan Burck from Germanwatch, co-author of the report.
“With the first hurdle take in cost competitiveness, governments now need to adjust the power system and market design to cope with an increasing share of weather-dependent renewables”, says Niklas Höhne, founding partner of the NewClimate Institute and co-author of the Monitor.
Investments in G20 need to roughly double to remain within the Paris Agreement warming limit. India, South Africa and Indonesia are high-need hotspots.