Challenges and opportunities beyond 2021

The pandemic has the potential to change the priority of government policies and budgets, developers’ investment decisions and the availability of financing through 2025. This casts a great deal of uncertainty on a market that had been expanding at a rapid pace in the previous five years.

At the same time, several countries are introducing massive stimulus programmes to respond to the current economic meltdown and support their economies. Some of these stimulus measures may be relevant for renewables. The IEA has been re-emphasising that governments should bear in mind the structural benefits of increasingly competitive renewables, such as economic development and job creation, while also reducing emissions and fostering technology innovation.