Oil still reigns, but renewables are pressing and gaining more and more space in the world market

The energy scenario is still dominated by oil, but renewable sources, such as solar, have been gaining ground in the market

Today, in the global energy scenario, fossil fuels, such as oil, natural gas and mineral coal, still dominate the market, but renewable energy sources have been widely gaining ground. An example of this advance is solar panels, which increased from 217 GW of installed capacity worldwide to 578 GW.

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Nicolas Berghmans, from the IDDRI think tank, says that “Fossil fuels remain dominant, but the dynamic clearly favors renewable electricity”.

According to data from the International Renewable Energy Agency, in recent years, solar panels have grown rapidly, from 217 GW of global installed capacity in 2015 to 578 GW in 2019. This is more than double the total energy production capacity from Russia in 2015.

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Fossil fuels have taken a hit this year, particularly from solar and wind power generation in the United States and China. Renewables account for almost 90% of new capacity.

Nicolas still says that renewable energies will overtake coal in 2025 and become the main source of electricity production.

"We haven't seen much reduction in renewable electricity development during the crisis and that could be because of the drop in costs, which make it competitive, but also because public support has been maintained."

The scenario of oil and its derivatives was strongly affected by the restrictions imposed by the government, to limit the spread of the coronavirus, severely affecting the transport sector.

Prices also took a big hit: although one of the major contracts fell to pre-pandemic levels, it briefly dipped below zero. Demand is expected to pick up as the global economy recovers next year.