Renewables are set to grow by 8% per year on average, serving more than 90% of the world’s net demand growth during the 2022-24 period, the International Energy Agency (IEA) said in its latest electricity market report.

Power demand during the period is seen growing 2.7% annually on average, but the Covid-19 pandemic and high energy prices bring some uncertainty to the outlook, the agency acknowledges.

The expected rising demand in coming years could result in additional market volatility and continued high emissions, as fossil-based generation is expected to stagnate in the coming years, but not as fast as needed to meet climate targets.