Renewable energy is a secular growth story of generational magnitude and importance

The world’s major economies (>75% of global GDP) committing to net zero emissions targets has given renewable energy a government mandate which de-risks it as a long-term secular growth trend.

According to the International Renewable Energy Agency (IRENA), installed solar and wind electricity generation capacity increased by c.18% year-over-year in 2020.

Solar and wind accounted for nearly 75% of all electricity generation capacity installed and over 90% of the renewable energy installed.

China and the United States were the main contributors accounting for 50% and 12% of the increase, respectively.

China’s net zero commitment and the targets announced by President Xi Jinping implies installed utility-scale solar and wind capacity increases by 2-3x by 2030 (or 8-9%pa) to account for c.10% of total primary energy consumption (or c.25% of electricity) relative to around 4% today.