Renewable energy is on track to take over the world, if Bloomberg New Energy Finance (BNEF)’s predictions are correct. This month they released their annual New Energy Outlook (NEO) report, which reveals 51 percent of the world’s power generation could come from renewables by 2040. During the next 23 years, 72 percent of the $10.2 trillion spent on new power generation will go into solar power and wind power.
The future sure looks bright for renewable energy. NEO 2017 lead author Seb Henbest said their report indicates “the greening of the world’s electricity system is unstoppable” as costs for wind and solar continue to plummet. Batteries will also play a role in the shift of the world from polluting fuels to clean ones.
Coal is on its way out, if the NEO 2017 predictions are correct. The BNEF team wrote in Germany, Spain, Italy, Australia, and the United States, solar is at least as cheap as coal, and in just a few years – by 2021 – it will be less expensive than coal in Mexico, Brazil, the United Kingdom, China, and India.
And while the report suggests 51 percent of the world’s power could come from renewables in 2040, Greentech Media pointed out that’s an average. Some countries could get more than 51 percent energy from renewables – countries like Mexico, Italy, Brazil, and Chile could get as much as 80 percent of their energy from clean sources. Wind and solar on their own will account for more than 50 percent of power in Australia, the United Kingdom, Germany, and Mexico.
Henbest told Greentech Media, “The cost declines that we are seeing with these technologies are so steep that it becomes a matter of time as to when they start crossing over and becoming competitive in different ways. These things are getting cheaper faster than we thought even a year ago.”