New research has shown that global emissions of greenhouse gases from the power sector are expected to peak in 2026, but will still be some way above levels needed to limit temperature rises in line with the United Nations sponsored Paris Agreement on climate change.
Overall, US$10.2 trillion will be invested in new global power generation between 2017 and 2040, with renewable power sources such as wind and solar accounting for almost three quarters of that, a report by Bloomberg New Energy Finance (BNEF) said.
Reuters Newsagency quotes the BNEF reports as say that by 2040, global emissions are expected to be four per cent below 2016’s levels, but an additional US$5.3 trillion investment in renewable power would be needed by 2040 to keep rising global temperatures below two degrees Celsius.
Solar is already at least as cheap as coal in Germany, Australia, the United States, Spain and Italy.
The levelised cost of electricity from solar is set to drop another 66 per cent by 2040. By 2021, it will be cheaper than coal in China, India, Mexico, the U.K. and Brazil as well.
Under the 2015 Paris deal, more than 190 countries pledged to curb greenhouse gas emissions to keep planet-warming well below 2.0°C to stave off the worst effects of climate change.
The report said the costs of renewable power were expected to continue to fall, with the cost of solar tipped to fall by 66 per cent by 2040.
The cost of offshore wind power is forecast to fall by 71 per cent by 2040, helped in part by increased competition and economies of scale from larger projects and bigger turbines.
United States President Donald Trump said this month he would withdraw his country from the Paris Agreement, but the report said the move is unlikely to revive the US coal industry.
Coal-fired power generation in the US is expected to fall by 51 per cent by 2040, with a 169 per cent increase in renewable power helping to fill the void.
“The greening of the world’s electricity system is unstoppable, thanks to rapidly falling costs for solar and wind power, and a growing role for batteries, including those in electric vehicles,” said BNEF analyst Seb Henbest, the report’s lead author.
Homes and businesses with their own renewable generation sources, such as solar panels, are expected to be able to use and even sell the power they generate by storing it in batteries in their cars.
Electric vehicles and their batteries are forecast to account for 12-13 per cent of electricity generation by 2040 in Europe and the US, the report said.
