Although a new long-range forecast from Bloomberg New Energy Finance believes wind will be the main technology used through 2030, solar photovoltaics is expected to grow considerably in that timeframe and help contribute to renewable energy generating 22% of global energy production by 2020 and 31% by 2030. According to the report annual global expenditure on renewable energy projects will increase from US$90 billion in 2009 to US$150 billion in 2020. Given current policy targets from countries around the world, expenditure is projected to increase to US$200 billion annually by 2030.
However, the Bloomberg report claims that these figures must increase significantly to achieve an average of 2tCO2 (tons of carbon dioxide) per head by 2050. Expenditure on renewable energy would therefore need to increase to US$230 billion by 2020 and US$500 billion by 2030 to meet this goal. This will mean that renewable energy expands to cover just over 40% of installed power generation capacity and contributes 45% to the additional 19Gt (gross tons) of emission reductions needed by 2030.
Guy Turner, director of Carbon Market Research at Bloomberg New Energy Finance, said, “These findings confirm that in spite of the ongoing economic malaise, investment in renewable energy should continue to grow, driven heavily by existing government targets. And if governments take the threat of climate seriously, there will be an increasing role for renewable energy up to 2030.”