Offshore wind costs are set to fall by 71% by 2040, according to a new report from Bloomberg New Energy Finance (BNEF).
The ‘New Energy Outlook 2017′ report said the drop would be the result of increased competition, reduced risk and economies of scale resulting from larger projects and turbines, as well as from improved knowledge of project development.
It predicts that solar costs will come down 66%, while onshore wind will fall 47% over the same period.
Overall, the report said renewables will account for almost three quarters of the $10.2 trillion the world will invest in new power generation over the years to 2040.
It said some $7.4 trillion will be invested in new renewables by 2040, of which wind’s share would be $3.3 trillion and solar $2.8 trillion.
Most of the investment would be in Asia, with China accounting for 28% and India 11% – about $4 trillion.
As a result of the increased investment wind and solar will make up 48% of the world’s installed capacity and 34% of electricity generation by 2040, compared with just 12% and 5% now, BNEF said.
It also predicts that the lithium-ion battery market for energy storage will be worth at least $239bn between now and 2040.
BNEF lead author of the report Seb Henbest said: “This year’s report suggests that 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, in balancing supply and demand.”
Image: Pixabay
Offshore costs ‘to fall 71%’
BNEF report says $7.4 trillion to be invested in renewables up to 2040
By EBS