The International Energy Agency (IEA) predicts that the renewable energy industry will grow between 2015 and 2021 by 13% more than it did in last year’s forecast.

The IEA has increased its estimates due to stronger policy backing in China, India, Mexico and the United States.

Costs are expected to drop by a quarter in solar and 15% for onshore wind.

Fatih Birol, the IEA’s Executive Director, said: “We are witnessing a transformation of global power markets led by renewables and, as is the case with other fields, the centre of gravity for renewable growth is moving to emerging markets”

28% by 2021

The IEA expects that renewable energy will remain the fastest-growing source of electricity generation, with its share growing to 28% in 2021 from 23% in 2015.

Generation from renewables is expected to exceed 7600TWh by 2021, which is equivalent to today’s combined electricity generation of the European Union and the United States.

But the organisation also highlighted the difficulties of integrating renewables into existing power grids.

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