Renewable energy is set to rival coal as the main generator of the world’s electricity by in two decades, an International Energy Agency (IEA) says in a white paper.
Wind farms, solar parks and hydroelectric dams are forecast to become the second biggest power generator in 2015 and rise to almost a third of all generation in 2035 as costs go down and subsidies rise.
Renewable energy industry groups predict wind power installations will double over the five years through 2016, with solar photovoltaic panels tripling even as solar and wind equipment manufacturers from Denmark’s Vestas Wind Systems A/S (VWS) to China’s Suntech Power Holdings Co. (STP) struggle with declining margins and industry-wide overcapacity. (Suntech has a plant in Goodyear, Ariz.)
The IEA projected global renewable energy subsidies to rise to $240 billion in 2035 from $88 billion in 2011. That compares with $523 billion in support paid to fossil fuels last year.
“Subsidy measures to support new renewable energy projects need to be adjusted over time as capacity increases and as the costs of renewable technologies fall, to avoid excessive burdens on governments and consumers,” the agency said.
If you’d like to discuss energy issues, contact Court Rich, crich@roselawgroup.com
