Study Claims Solar, Wind Power Will Lead Future Energy Markets
Power generation with fossil fuels is nearing the end of its dominance and cannot be saved by low prices for coal and natural gas. Seen as a “bridge fuel” in the U.S., “gas will play a key role in electricity generation across North America over the next decade, accounting for 15% of all new generating capacity, replacing coal in the U.S. and seeing strong growth in Mexico,” says the New Energy Outlook 2016 from Bloomberg New Energy Finance. But, “from 2027, gas generation begins a slow decline in Europe and then in the U.S. and China,” the New Energy Outlook says. “By around 2027, new wind and solar gets cheaper than running existing coal and gas generators, particularly where carbon pricing is in place. This is a tipping point that results in rapid and widespread renewables development.” By 2040, 60% of installed capacity will be zero-emission sources. Even more telling, 64% of new generating capacity worldwide over the next 25 years will be wind and solar, but it will account for just 60% of the $11.4 trillion invested.