Global renewable energy industry to attract $3.4tr investments by 2030
London, Sep. 2, 2020 (AltAfrica)-The global renewable energy industry will be an arena for around USD 3.4 trillion (EUR 2.8tr) of new investments over the next decade as installation costs decline and coal power generation fades.
This forecast was made by market analysts at Frost & Sullivan in a review of the Growth Opportunities from Decarbonization in the Global Power Market in 2019-2030.
According to the analysis, the 2020s will be “crucial” for all power industry players as the industry transitions toward the wider use of renewable energy, with some USD 2.72 trillion of the estimated investment to be channelled into wind and solar.
As a result, by 2030, 54.1% of the world’s installed power capacity will be renewable, of which wind and solar will contribute 37.9%.
A major uptake on the wind and solar front, in particular, is expected this decade, triggered by the falling costs and renewable-friendly energy policies adopted in countries in North America, Latin America, Europe, the Middle East, as well as in China and India.
“Pressure will continue to build for further decarbonization within the power system as the rate of adoption of digital technologies increases in both existing and future plants to boost operational performance,” said Vasanth Krishnan, senior research analyst, Industrial Practice.
Krishnan projects that decentralisation efforts in the power sector will lift annual global investments to USD 92.54 billion in 2030 from USD 53.14 billion in 2019. He also sees technologies and solutions such as battery energy storage systems and virtual power plants becoming more widespread as system operations strive to manage the uncertain renewable output and declining coal production.
Growth opportunities will vary depending on the region. The focus in Europe and China will be battery storage, while energy service and performance contracting is forecast to be a priority for the North American market. A major driver in India will be the deployment of fresh solar and wind power capacity.