Analyst Says Investment In Renewables To Keep On Growing
Investments in renewable energy should continue
to grow globally up to 2030 and increase the
share of renewable energy in the world’s installed power generation,
a study by a top sector analyst shows.
Using a model that was developed over two years, plus years more of data collection, the study from the new Bloomberg New Energy Finance says investments in renewable energy projects will eventually reach $200 billion in 2030.
The report projects that $90 billion flowed into the sector in 2009 and will reach $150 billion in 2020.
Using their model, Bloomberg New Energy Finance determined that the current 13 percent share of renewable energy in the world’s installed power generation will rise to 22 percent in 2020 with the help of the investments.
That percentage will further increase to 31 percent by 2030, according to their long-term projection that covers over 200 countries and regions worldwide.
But this will only happen if current policy targets are achieved. “If governments take the threat of climate seriously, there will be an increasing role for renewable energy up to 2030,” said Gay Turner, director of carbon market research at Bloomberg New Energy Finance.
Bloomberg acquired ownership and distribution rights on products and services of New Energy Finance Limited in December 2009. Bloomberg New Energy Finance now claims to be a leading independent provider of research and analysis in renewable energy, the carbon markets, smart energy technologies, carbon capture and storage and nuclear power.
Onshore wind projects will seize most of the annual global expenditure for renewable energy. The onshore wind and solar photovoltaic markets will experience further expansion while biomass technologies will persist as important sources of renewable energy, especially for the transport sector. Hydropower generation will grow the least, the report says.
The new model also attributes major emission reductions in the future to come from forestry and agriculture and improved industrial energy, particularly when building energy-efficient structures become cost effective.
The model concludes that these ambitious objectives can be met if global emissions are obtained by progressively raising worldwide carbon costs to $100 per ton by 2030.
Bloomberg’s model made a forecast of investment levels, technologies and policy options necessary to achieve energy and emissions goals.
It suggests that investment figures must be increased to $230 billion by 2020 and to $500 billion by 2030 to obtain an average of 2 tons of carbon dioxide per head by 2050 and prevent the negative effects of climate change.
Reaching this target will facilitate the expansion of renewable energy to sustain over 40 percent of installed power generation. It will also help reduce another 45 percent to the additional 19 gross tons of emissions reductions needed by 2030.