Sourcing Renewables - September 4, 2020
Renewables could make up more than half of installed capacity by 2030
An estimated $3.40 trillion will be invested in renewable energy during the next decade and 54.1% of installed capacity will be renewable, a new report predicts.
Frost & Sullivan’s “Growth Opportunities from Decarbonization in the Global Power Market, 2019-2030” found that falling costs and renewable-friendly energy policies adopted by several countries around the world will contribute to the increasing transition of the power industry toward renewables and away from coal in the 2020s. Solar and wind in particular are expected to increase significantly and are expected to account for 37.9% of installed capacity by 2030.
“Decentralization, decarbonization, and digitalization are the three key pillars of the global energy transition,” Vasanth Krishnan, Senior Research Analyst of Industrial Practice at Frost & Sullivan, said in a statement. “The power sector will witness strong growth in decentralization 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 decarbonization within the power system as the rate of adoption of digital technologies increases in both existing and future plants to boost operational performance.”
While growth opportunities are expected to vary by region, conventional power plant operators will be required to compete with alternative power sources to stay profitable and as a result, will need to convert to digital solutions that ultimately increase operational efficiency and asset utilization. In North America, high energy costs will drive strong market growth for energy service and performance contracting, which is expected to more than double in size before 2030 to be worth $19.14 billion.