Renewables predicted to be the largest source of capacity boost by 2020: IEA

Its share of generation will jump to 26%.

According to an annual report by the International Energy Agency, as a result of its fast growth rate (130 GW in 2014) and declining costs on a global scale, renewable energy is expected to be the largest source of net additions to power capacity over the medium term.

It accounts for almost two thirds of the expansion by 2020, with nonhydro sources nearly half of the total, IEA said. 

"The renewable share of generation rises from 22% in 2013 to over 26% in 2020 and renewable generation reaches a level more than today’s total combined demand of China, India and Brazil," IEA further said in its report.

China alone accounts for 40% of global renewable capacity growth, an amount triple the current total power capacity of the United Kingdom. China requires almost one-third of cumulative new investment to 2020.

China’s generation needs, pollution concerns and a favourable policy environment with ambitious targets drive the forecast. Announced power sector reforms to support the integration of higher levels of variable renewables should help reinforce their role.

"Robust expansion is expected in onshore wind, whose cumulative capacity more than doubles, and solar PV, whose cumulative capacity almost quadruples. The annual growth of hydropower slows, but cumulative hydropower capacity growth is as large as the current total power capacity of Australia," IEA said.