BNEF predicts renewables to win race on costs to become dominant generation source
14.6.2016: Although low prices for coal and gas are likely to persist, wind and solar will win the race on costs. This is the major outcome of the »New Energy Outlook 2016« which was presented yesterday by Bloomberg New Energy Finance (BNEF). BNEF analysts predict that solar and wind will become the cheapest ways of producing electricity in many countries during the 2020s and in most of the world in the 2030s. Onshore wind costs fall by 41% and solar PV costs fall by 60% by 2040. Furthermore, the report forecasts that solar and wind will make up 60% of installed capacity by 2040. Wind and solar will account for 64% of the 8.6TW of new power generating capacity added worldwide over the next 25 years, and for almost 60% of the $11.4 trillion invested.
The report also charts a significantly lower track for global coal, gas and oil prices than did the equivalent projection a year ago. Crucially, however, it also shows a steeper decline for wind and solar costs.
Seb Henbest, head of Europe, Middle East and Africa for BNEF, and lead author of NEO 2016, commented: »Some $7.8 trillion will be invested globally in renewables between 2016 and 2040, two thirds of the investment in all power generating capacity, but it would require trillions more to bring world emissions onto a track compatible with the United Nations 2°C climate target.«
© PHOTON
www.bloomberg.com/company/new-energy-outlook/
Monty Bannerman
ArcStar Energy
+1-646-402-5076
www.arcstarenergy.com
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