Research from ING Think indicates that COVID-19 has had little impact on the growth prospects for wind and solar, with the European wind and solar markets expected to provide solid growth of 8% and 13% in 2021 in terms of capacity additions.
Policy support for local green power systems means wind and solar are predicted to remain strong, with an increase in power demand on the horizon, although this will be dependent on COVID-19 related factors such as lockdown extensions and delays to the vaccine rollout.
Increases in energy efficiency and a large share of services in the economy, meant the economy was less power dependant prior to the pandemic , with power demand increasingly decoupling from economic growth. The electrification of traditionally energy-intensive sectors such as manufacturing and the built environment, is not expected to lift power demand before 2025.
Although the growth in the offshore wind sector is relatively small, policymakers in the Nordics,UK, Ireland, Germany and the Netherlands continue to work on planning for offshore wind farms and grid infrastructure, so a rise is predicted in offshore wind farms.
€60bn investment in wind and solar anticipated for 2021
The European wind and solar markets are expected to provide solid growth of 8% and 13% in 2021 in terms of capacity additions. In absolute terms, capacity additions are largest in the onshore wind sector (13 GW) and for small scale solar projects (12 GW). In the offshore wind sector c.2GW of capacity will be added in 2021.
Over the year, up to a third of power comes from wind and solar in Ireland, Spain and Portugal (the Iberian region), the UK and in Germany. During the year, on a daily or hourly basis, shares can range from almost zero to over 100% depending on local weather conditions and power demand.
