The institution established after the first major oil crisis in 1973 said 165 gigawatts of renewables were completed previous year, which was two-thirds of the net expansion in electricity supply.
By 2022, India is expected to more than double its current renewable electricity capacity. "We expect that solar PV capacity growth will be higher than any other renewable technology through 2022".
IEA also said that in spite of rapidly rising sales of electric vehicles (EV), the share of renewables in road transport will likely rise only slightly to 4.5% in 2022 from over 4% in 2016.
"What we are witnessing is the birth of a new era in solar PV", Fatih Birol, executive director of the IEA, said in a statement accompanying the report published on Wednesday in Paris.
Solar energy was the fastest-growing source of electric power past year, a new report said on Wednesday, amid the "birth of a new era" for the reneweable energy sector.
The recognition in China dominating PV installations, which accounted for around 50% of total in 2016 was another positive but the IEA claimed that the "growing cost of renewable subsidies and grid integration issues remain two important challenges to further expansion".
Thanks to strong performance of solar PV market, renewable energy accounted for nearly two-thirds of net new power capacity around the world in 2016.
The IEA expects about 1,000 gigawatts of renewables will be installed in the next five years, a milestone that coal only accomplished after 80 years.
A new report from the International Energy Agency surveys the growth of hydropower, wind, and other forms of renewable energy and finds they're catching up to coal (still the world's largest source of electricity). The country is seeking to reduce its reliance on coal and has become the world's largest market for renewables, particularly solar.
The predicted growth in renewable power capacity is now 12 per cent higher than it was in last year's prediction. Upward trends in China and India mostly drove the increase. By 2022, clean energy will account for a third of power generation at 8,000 terawatt hours, or enough to meet the current electricity demands from China, India, and Germany combined. The Modi government is working on an ambitious plan to increase the installed base of domestic renewable energy capacity to 175 Gigawatt by 2022.
Although coal will still be the largest source of electricity generation in 2022, renewables is on track to close the generation gap with coal by half in just five years.