Renewable energy will gain around $7.7 trillion investment in power sector by building new power plants by 2030 as declining costs will make it competitive with fossil fuels, according to the report released by Bloomberg New Energy Finance.
Asian countries will see half of the renewable power investment with an opportunity for maximum growth. This will lead to global carbon emissions peak by the end of the next decade.
Prices of cells and turbines fell down with the expansion of solar and wind manufacturing capacity. This makes clean energy plants profitable in many locations. Annual investment in wind and solar technologies has surpassed fossil fuels in 2011.
Michael Liebreich, chairman, advisory board, BNEF, said, “Global carbon emissions will be under control by next decade, but the developing countries will continue adding fossil fuel capacity as well.”
Fossil fuel’s share of power generation will shrink to 46 percent from 64 percent prevailing now. Around 5,000 GW of power generation capacity will be added globally. Coal and gas plants will account for about 1,073 GW only, contributed mostly by developing countries facing growing power demands, suggested the report.
By 2030 Solar power will be the leading clean energy solution with 800 GW of total capacity. Solar capacity will be the highest in Asia, exceeding gas and coal combined plants. This will be driven by economics as solar will be competitive with other power sources by 2020.
Solar and wind power will add their share of power generation to 16 percent in 2030 compared with 3 percent last year. Gas-fired generation will survive with growing installations and abundant supply. Among non-polluting sources, hydropower will have the biggest share.
Coal plants capacity will shrink in Europe and the Americas. Coal capacity will only grow in Asia to support the economic growth, stated the report.
About $5.1 trillion of the total investment will be spent on renewables including hydro power. Asia will account for $2.5 trillion, the Americas $816 billion and Europe $967 billion. The Middle East and Africa will invest another $818 billion.
editor@greentechlead.com