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Top 3 Energy Market Trends to Watch in 2021

We are nearing the end of what has been a difficult year, with COVID-19 disrupting lives and economies across the globe. The energy market was greatly affected by the pandemic, and because lockdowns may need to extend into 2022, disruptions are likely to continue.

So, what can we expect to see next year? We’ve compiled a list of top renewable energy trends to watch in 2021, based on research by the Energy Information Administration (EIA) and the International Energy Agency (IEA).

1. Expect Green Hydrogen to Grow

Green hydrogen has long been hailed as one of the keys to drastically reducing global CO2 emissions. Green hydrogen is produced by electrolysis powered by renewable energy sources. As the price of renewable electricity continues to fall, we can expect to see green hydrogen become cost competitive and play a greater role in our energy industry.

2. Renewables Will Rebound

Many renewable energy projects (solar and wind) that were postponed by the pandemic are expected to come online in 2021 and lead to a rebound in renewable energy capacity. As a result, we can expect 2021 capacity levels to come close to those of 2019, before the pandemic struck. Onshore wind installations have also been affected by commissioning delays, although they were lucky, most projects were in the pipeline pre-coronavirus and are already financed and under construction.

3. Transport Biofuel Will Follow Gasoline/Diesel Trends

Covid-19 has had a major impact on the global biofuels market, with lockdown measures reducing economic activity and the need for transport fuel. As demand for gasoline and diesel falls, biofuel consumption falls as well. The reason for this is that many policies require a predetermined amount of biofuel to be combined with gas and diesel. If coronavirus cases fall and lockdown measures are rescinded worldwide, biofuel will recover alongside its fossil fuel counterparts.

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