Bloomberg’s New Energy Outlook analyses how the energy system will look in 2040, where wind and solar accounts for half of the world's electricity capacity.
The Bloomberg analysts have published their annual New Energy Outlook, which analyses the global energy system. The report emphasises tendencies that have been outlined before: There has been a breakthrough in renewable energy technologies. Renewable energy is no longer a difficult but necessary energy source -it is in many cases the first choice.
Bloomberg predicts that wind and solar will account for almost half of the installed electricity capacity in 2040. Today, the figure is 12 %. To achieve that, it requires investing three times more in renewable energy than in fossil fuels.
The green transition is not just a hope for future development but also an acutal prediction, as renewable energy will phase out fossil fuels. Behind the change is a continuing decline in the cost of developing renewable energy sources.
Bloomberg is expecting that we can get more than twice the power for every dollar we invest in solar and wind by 2040. When looking at offshore wind the expected reduction in prices are even greater. Bloomberg expects that offshore wind will be more than 70 % cheaper in 2040. The big price drop is due to the expectation of continued technological development, increased competition and increased production compared to today.
– It is great that Bloomberg and others are pointing out that renewable energy is booming contrary to fossil fuels, says Senior Consultant from The Danish Energy Association, Torsten Hasforth.
– These exact figures, analysed 20 years ahead in the future, are only estimates, but the tendency is clear. Maybe Bloomberg is even too conservative in their calculations as they are only expecting that wind and solar will phase out coal by 2030. In a European context and with the right framework conditions, this development could happen even earlier, says Torsten Hasforth.
Bloomberg is expecting that only one third of the coal power plants planned today will be completed.