Renewables will make up two-thirds of global investments in new power plants by 2040, as rapidly dropping costs for clean energy technologies make them the cheapest source of generation for many countries, according to the International Energy Agency’s (IEA’s) World Energy Outlook released today, 14 November 2017.
Green energy will account for 40 percent of global electricity needs by 2040, and 80 percent of new generation capacity in the European Union, the agency said.
Wind power is expected to become the EU’s leading source of electricity soon after 2030 due to strong projected growth both on- and offshore, according to the IEA’s New Policies Scenario, which assessed existing and announced policies.
Global energy needs are expected to rise more slowly than in the past but still expand by 30 percent between today and 2040 — the equivalent of adding another China and India to today’s global demand, it said.
A big chunk of that increase is due to growing electricity use, with more electric cars on the road and a growing share of electrical appliances with smart energy features.
China can play a key role in shaping the global picture, with its policies potentially accelerating the clean energy transition, the IEA said.
However, the shift to clean fuels does not mean it’s the end of oil. The World Energy Outlook predicts oil demand growth to remain robust up until the mid-2020s, mainly driven by a boost in supply from the U.S.
IEA Booklet 2017 can be bought here