Half Worlds Electricity Will Come From Wind, Solar And Batteries By 2050 June 21, 2019

Half the world’s electricity will be sourced from wind, solar and batteries by 2050, according to research from BloombergNEF (BNEF). The firm’s latest New Energy Outlook puts this investment opportunity at $13.3 trillion dollars with wind and solar taking $5.3 trillion and $4.2 trillion respectively.

The key driver for this is the falling cost of the electricity produced from these sources, the levelized cost of energy (LCOE). In two-thirds of the world both wind and solar are now the cheapest options for adding new power capacity.

The impact on traditional fossil fuel sources is marked. Coal’s share of the global mix will plummet from 37% to 12% and oil-fired power plants being effectively eliminated. The combined contribution of wind and solar is forecast to jump from 7% to 48%.

Adding all this wind and solar, and its variable, weather-dependent, output will require huge investments in battery additions, $840 billion to be precise. That energy storage will stabilize the grid and realign peaks in demand with peaks in generation.

“Our power system analysis reinforces a key message from previous New Energy Outlooks – that solar photovoltaic modules, wind turbines and lithium-ion batteries are set to continue on aggressive cost reduction curves, of 28%, 14% and 18% respectively for every doubling in global installed capacity,” said Matthias Kimmel, NEO 2019 lead analyst. “By 2030, the energy generated or stored and dispatched by these three technologies will undercut electricity generated by existing coal and gas plants almost everywhere,” he added.

As the heat and transport sectors electrify and access to, and a thirst for, electricity grows in emerging economies, global demand for power will soar by 62%.

While renewable energy’s growth so far has been seeded by direct subsidies, investment tax credits and certificate schemes, BNEF views regulation as the more important focus for governments now.

“The days when direct supports such as feed-in tariffs are needed are coming to an end,” said Elena Giannakopoulou, head of energy economics, BNEF. “Still, to achieve this level of transition and de-carbonization, other policy changes will be required – namely, the reforming of power markets to ensure wind, solar, and batteries are remunerated properly for their contributions to the grid,” said Giannakopoulou.

ARTICLE: FORBES | Half The World’s Electricity Will Come From Wind, Solar And Batteries By 2050

To be the first to hear about Project Updates, ASX Releases, Company News and more – CLICK HERE to subscribe to the Orocobre eNewsletter

Latest News &
Announcements

All our latest news, speeches, announcements, presentations and media releases from Orocobre Limited. The best way to stay up to date is to sign up for our newsletter.

  • Toyota Strikes Deal With World’s Top Supplier of Electric Car Batteries

    Toyota Strikes Deal With World’s Top Supplier of Electric Car Batteries

    Toyota Motor Corp. agreed to buy batteries from Contemporary Amperex Technology Co. Ltd. (CATL) as part of a broader partnership, the latest in a slew of tie-ups being forged as global carmakers race to secure stable supplies for electric vehicles.
  • VIII International Seminar: Lithium in the South America Region

    VIII International Seminar: Lithium in the South America Region

    Orocobre Limited CEO and Managing Director Martín Pérez de Solay presented at the annual “VIII Seminario Internacional: Litio en la Región de Sudamérica” speaking in detail about the current levels of production at the Olaroz Lithium Facility, progress of the Stage 2 Expansion project, the current state of the lithium market and Sales de Jujuy... View Article
  • Olaroz Lithium Facility’s Stage 2 Expansion continues to advance steadily

    Olaroz Lithium Facility’s Stage 2 Expansion continues to advance steadily

    As part of his presentation at “VIII Seminario Internacional: Litio en la Región de Sudamérica” (VIII International Seminar: Lithium in South America), Chief Executive Officer and Managing Director of Orocobre Limited, Mr. Martín Pérez de Solay was interviewed exclusively by the event organisers PANORAMA MINERO.

Be the first to know.
Subscribe Now.

We will never sell or share this information to anyone. Privacy Policy
© 2019 Orocobre Limited Pty Ltd