EU renewables capacity to surge on $1tn investment

A recent report by Bloomberg New Energy Finance has described how over the next 10-15 years renewable energy capacities will rise. They have predicted as following:

1. European electricity generation capacity will rise from 40% in 2012 to 60% in 2030.

2. Fossil fuel sources such as coal and gad will reduce from 48% to 27%.

Seb Henbest, Head of Europe, Middle East and Africa for Bloomberg New Energy Finance said:

“Our research shows that further improvements in the economics of solar and wind will mean they are increasingly installed without subsidy in the years ahead. We expect Europe to invest nearly $1 trillion to increase its renewables capacity by 2030,[1] with rooftop PV accounting for $339bn and onshore wind $250bn.” “Our model suggests that power demand in Europe will increase by only 9% between 2014 and 2030, as energy efficiency improvements take effect. This, and the growing cost advantage of wind and solar, will enable the continent to cut its power sector emissions from 1.3bn tonnes of CO2 in 2013 to 564m tonnes in 2030.” Into the 2020s the only significant renewable power technology to continue to be subsidized will be offshore wind. BNEF predicts that Europe will add 64GW of offshore wind capacity between now and 2030. This will be an equivalent investment of $296 billion.

It will be focused on a country-by-country basis. Bloomberg New Energy Finance anticipates $7.7 trillion to be invested in new generating capacity by 2030. Of this, 66% goes on renewable technologies including hydro. Of the $5.1 trillion to be spent on renewables, Asia-Pacific will account for $2.5 trillion, the Americas $816bn, Europe $967bn and the rest of the world including Middle East and Africa $818bn.

Michael Liebreich, chairman of the advisory board for Bloomberg New Energy Finance, added: “This country-by-country, technology-by-technology forecast of power market investment is more bullish on renewable energy’s future share of total generation than some of the other major forecasts, largely because we have a more bullish view of continuing cost reductions. What we are seeing is global CO2 emissions on track to stop growing by the end of next decade, with the peak only pushed back because of fast-growing developing countries, which continue adding fossil fuel capacity as well as renewables.”