Friday, April 3, 2015

Growth of Renewable Energy in 2015 and Beyond

The future for renewable energy is looking bright. Renewable energy had one of the best years every in 2014 and this growth trend is expected to continue in 2015 and beyond.

The 2030 Market Outlook is a Bloomberg New Energy Finance Report. According to the report renewables will command over 60 percent of the 5,579GW of new capacity and 65 percent of the $7.7 trillion of power investments.

It is predicted that the wind and solar sectors will keep growing and perhaps even accelerate. This is more likely if, as expected, costs keep getting lower and performance keeps improving. This is particularly true of solar panels which are expected to keep declining in price.

An EIA report suggests that 2015 will look a lot like 2014 in the US as far as renewable energy growth is concerned. This means we can expect to see more solar and wind and less. Specifically electric generating companies are expected to add more than 20 gigawatts (GW) of utility-scale generating capacity to the power grid. The additions are dominated by wind (9.8 GW), natural gas (6.3 GW), and solar (2.2 GW), which combine to make up 91 percent of total additions.

Despite bullish forecasts there will be some issues confronting the growth of renewables going forward. A UNEP Global Trends in Renewable Energy report said that uncertainty surrounding government support for renewables may compromise investor confidence. The Bloomberg report suggests that economics rather than government policy will drive the growth of renewables going forward.

Up to this point the rapid growth of renewable energy has been driven by policy support in most markets. However, this policy support can actually constrain growth as the volume of renewables grows. Therefore falling price points are essential to continued growth.

Related
Moving Towards 100% Renewables in the US
Renewable Energy in Africa and the Middle East
The ABCs of Latin American Renewable Energy (Argentina, Brazil and Costa Rica)
Asian Renewable Energy (China, India Japan, South Korea)
Australia Can Go 100% Renewable Due to Falling Costs
Canada Could Get All of Its Electricity from Renewables
Europe Moving Towards 100 percent Renewable Energy
One of the Best Years Ever for Renewable Energy in 2014
2014 Year End Review: Renewable Energy Achievements
Economic Benefits of Renewable Energy and Efficiency

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