Around $3.40 trillion (€285 trillion) will be invested in renewable energy around the world in the next decade, according to an analysis.
Research by market analysts Frost & Sullivan estimates that $2.72 trillion will be spent on wind and solar power projects by 2030. By 2030, 54.1% of installed capacity will be renewable, including hydropower, and 37.9% will be a combination of solar and wind.
Falling costs and renewable-friendly energy policies adopted by several countries in the six major geographies of North America, Latin America, Europe, the Middle East, China, and India - are prominent reasons why solar photovoltaic (PV) and wind capacity are expected to soar this decade.
For example, in India renewable energy is projected to account for more than 72% of new energy additions over the next decade.
“Decentralisation, decarbonisation, and digitalisation are the three key pillars of the global energy transition,“ said Frost & Sullivan senior research analyst in the industrial practice Vasanth Krishnan.
“The power sector will witness strong growth in decentralisation during the decade, with annual global investment increasing from $53.14 billion in 2019 to $92.54 billion in 2030.
“Pressure will continue to build for further decarbonisation within the power system as the rate of adoption of digital technologies increases in both existing and future plants to boost operational performance.
“System operators are coming under increasing pressure to manage the system with uncertain renewable output, declining coal output, and demand-side variability. As a result, technologies and solutions such as battery energy storage systems, gas engines, demand-side response, and virtual power plants are witnessing unprecedented adoption rates amongst utilities, solution providers, and end consumers.“
Frost & Sullivan predicted that battery storage will accelerate rapidly in China, which will represent 62% of the market. In Europe, storage will grow to 70GW in 2030 from under 3GW last year.
