IEA reports record year for green energy as renewables surpass coal

Renewable energy sources have replaced coal as the largest producer of installed power globally, according to the International Energy Agency.

The IEA has sharply revised its growth forecasts for green energy sources due to "strong policy support in key countries and sharp cost reductions".

The agency's report said that around 500,000 solar panels were installed on average every day last year, and renewables represented more than half of the new power capacity added around the world in 2015.

Dr. Fatih Biroll, executive director of the IEA, said that the shift towards renewables is inevitable.

"We are witnessing a transformation of global power markets led by renewables and, as is the case with other fields, the center of gravity for renewable growth is moving to emerging markets," Biroll said.

According to estimates from the IEA, power generation from renewable sources will exceed 7,600 terrawatt hours by 2021, equivalent to the combined generation by the EU and United States currently.

Birol added that renewable energy sources such as solar and wind power had a vast amount of potential that is still untapped.

"Even these higher expectations remain modest compared with the huge untapped potential of renewables," he said. "The IEA will be working with governments around the world to maximize the deployment of renewables in coming years."

Recent research has suggested however that worldwide energy demand for fuel, heating and electricity will peak before 2030.

The World Energy Council said earlier this month that due to technological innovation, government policies and lower growth expectations the sector could reach its pinnacle sooner than previously expected.

Head of the IEA's renewable energy division Paolo Frankl, said efforts to address climate change by governments has played a huge role in the projection towards renewable energy, but still urged caution about its progress.

"There is still lots to be done here. There is too much policy uncertainty," he said.