Up to $3400bn (€2849bn) will be invested in renewable energy in the next decade, according research by market analysts Frost & Sullivan.
The research – ‘Opportunities from Decarbonization in the Global Power Market, 2019–2030’ – estimates that $2.72 trillion will be spent on wind and solar power projects by 2030.
Falling costs and renewable-friendly energy policies adopted by many countries are the main reasons for the prediction, the company said.
Frost & Sullivan said that by 2030 over 54% of global installed capacity will be clean power, including hydro, with wind and solar accounting for just under 38%.
For example, in India renewable energy is projected to account for more than 72% of new energy additions over the next decade.
Frost & Sullivan senior research analyst in the industrial practice Vasanth Krishnan said: “Decentralisation, decarbonization, and digitalization are the three key pillars of the global energy transition.
“The power sector will witness strong growth in decentralisation during the decade, with annual global investment increasing from $53.14bn in 2019 to $92.54bn in 2030.
“Pressure will continue to build for further decarbonisation within the power system as the rate of adoption of digital technologies increases in both existing and future plants to boost operational performance.
“The surge in need for flexibility is the most significant trend observed across developed markets.
“System operators are coming under increasing pressure to manage the system with uncertain renewable output, declining coal output, and demand-side variability.
“As a result, technologies and solutions such as battery energy storage systems, gas engines, demand-side response, and virtual power plants are witnessing unprecedented adoption rates amongst utilities, solution providers, and end consumers.”
Frost & Sullivan said that battery storage will accelerate rapidly in China, which will represent 62% of the market.
In Europe, storage will grow to 70GW in 2030 from under 3GW last year.