Renewable energy to be largest source for power generation by 2020, IEA

The International Energy Agency has stated that renewable energy will be the largest source for power generation across the world in the next five years.

Around 700GW of renewable power will be installed, making it more than twice what utilities generate today in Japan .

The cost of wind and solar farms will decline as installations surge, which in turn will lead to drop in investment value by 15% to $230bn a year by 2020.

IEA report was released in Istanbul at a meeting of energy ministers from the Group of 20 nations.

The report intends to prod policymakers toward adopting more stable system in backing renewable projects.

In the last few months, UK, Japan and Germany have cut down subsidies in clean-energy to restrict run-away booms.

The IEA urged for more thoughtful policies from goverments to support renewable power generation as against polluting power generation mechanisms such as from fossil fuel, etc.

IEA executive director Fatih Birol said: "Governments must remove the question marks over renewables if these technologies are to achieve their full potential."

The report also stated that "wavering policy commitment to decarbonisation and diversification in response to such efforts can undermine investor confidence, and retroactive changes can destroy it."

The IEA does not forsee the low prices of fossil fuels to impact the growth of renewable power generation.