Yearly investments in renewable energy capacity are expected to grow by anywhere from two and a half times to more than four and half times current levels by 2030, according to a new forecast by Bloomberg New Energy Finance. BNEF is predicting a rise to a massive $630 billion invested per year by 2030.
The forecast shows the investment in new renewable energy in 2030 to be $630 billion (in nominal terms), which is three times the investment in renewable power capacity in 2012. What’s more, the new figure is more than a third higher than BNEF’s previous global forecast just a year ago.
Significant improvements are expected in the cost-competitiveness of wind and solar technologies in relation to fossil fuels, as well as an increase in the development of resources such as geothermal, biomass, and hydro power.
Further, the company forecasts that 70% of new power generating capacity developed between last year and 2030 will come from renewables. Only 25% of new capacity is expected to come from coal, gas, or oil; the remaining 5% is expected to be nuclear power.
Do you think renewables will increase by the forecast amounts to 2030? I think it’s probable, considering the fast growth we are already seeing, and the inevitable ramping-up of renewables as the reality of looming climate change really sets in. Also, to put the projected growth into some perspective, if investment grows by 2.5 times to 2030, that’s only a rise of 5.39% per year. If the growth in investment turns out to rise 4.5 times by 2030, that’s 8.85% per year. I thinks that’s entirely within the realms of possibility. It could end up being more.
Image CC licensed by Jumanji Solar An large installation of solar modules.