According to Bloomberg New Energy Finance’s (BNEF) New Energy Outlook 2015 (NEO 2015), there will be five major shifts in the global electricity market over the quarter of a century.
1. Solar, solar everywhere
Further drops in the cost of photovoltaic (PV) technology will drive US$3.7 trillion of investment in both small- and large-scale solar.
2. Power to the people
Of this, US$2.2 trillion will go on rooftop and other local PV systems – handling consumers and businesses the ability to generate their own electricity.
3. Demand undershoots
Energy efficient technologies in areas such as lighting and air conditioning will limit global power demand growth to 1.8% per yr compared to the 3% per yr growth between 1990 – 2012. In OECD countries, power demand will actually be lower in 2040 than in 2014.
4. Gas flares – but only briefly
Coal-to-gas switching will mainly be a US story with many developing nations opting for a twin track of coal and renewables.
5. Climate peril
Carbon emissions will continue to grow to 2029 on legacy fossil fuel plants and new investment in coal-fired capacity in developing countries. By 2040, emissions levels will still be 13% higher than in 2040.
Coal’s continued role
“NEO 2015 shows that we will see tremendous progress towards a decarbonised power system,” said Michael Liebreich, Chairman of the Advisory Board of Bloomberg New Energy Finance. “However, it also shows that despite this, coal will continue to play a big part in world power, with emissions continuing to rise for another decade and a half, unless further radical policy action is taken.”
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/power/24062015/five-major-shifts-in-global-power-market-2470/