A new report, produced by Bloomberg NEF (BNEF), has said global investments in renewable energy generation will hit at least $13.3 trillion by 2050.
Indeed, in the next 31 years, almost half of the world’s electricity could come from renewable energy especially wind and solar.
While a country like Nigeria is yet to address the lingering challenges bedevilling its power, especially tapping into the huge opportunities in the renewable energy sector, the report noted that as much as 77 per cent of investments earmarked for new electricity generation would go in the direction of renewable sources.
The development also signals serious concern and underscores the need for diversification of economies like Nigeria, which is solely dependent on fossil fuel.
The report, New Energy Outlook 2019, noted that wind power will attract $5.3 trillion in the new generation by 2050, solar $4.2 trillion, while investments in batteries would amount to $843 billion.
Estimating that investment in new power generation capacity will help build 15,145 gigawatts (GW) by 2050, indicating about 80 per cent zero-carbon, the research revealed that global investment in new fossil plants will not exceed $2 trillion by 2050.
It was estimated that electricity demand would increase by about 62 per cent, as solar and wind is expected to supply almost 50 per cent of the world’s electricity, with hydro, nuclear and other renewables providing another 21 per cent.
In the report, coal is projected to be the biggest loser, as its global generation was estimated to plummet from current 37 per cent to 12 per cent in 2050, while its use will peak globally in 2026, and the generation will collapse all around the world except for Asia.
The report noted that the development would help nations to cut power-sector emissions through 2030, in line with goals set in Paris, France, to limit the increase in world temperatures to two degrees Celsius.
Continuously falling battery costs, and rising capacity and usage of clean energy are set to result in booming global stationary energy storage over the next two decades, which will require total investments of as much as $662 billion, according to the key findings of the latest report on new energies.
The report sees energy storage installations across the world soaring to 1,095GW, or 2,850GWh by 2040, compared to a modest current deployment of just 9GW/17GWh in 2018.