Initiatives worldwide aimed at cutting carbon emissions and establishing long term security will see renewable energy claim a 36% share of the global cumulative installed capacity by the end of the decade as per research from GBI research.
Solar Photovoltaic (PV) and wind energy will be the primary technologies to drive the global renewable energy installed capacity from 1,695 GW in 2012 to 2,762 GW in 2020, boasting the industry’s share of the world total installed capacity from 30% to 36% according to energy resources.
The Solar PV sector has expanded massively in recent years, in countries such India and China announcing ambitious future solar PV targets, there are no signs of this growth abating in the new future. Accordingly, GBI Research predicts global solar PV installed capacity to reach 331 GW by 2020, from 97 GW in 2012 with an increasing Compound Annual Growth Rate (CAGR) of 16.6%.
Favorable government policies in countries such as Germany, China and the US, the global installed capacity for wind is also expected to prove a key contributor to renewable energy, more than doubling from 284 GW in 2012 to 685 GW by 2020, as per GBI Research.
While the set up capital costs of renewable energy are higher than those of conventional methods, the government initiatives and technological advances have considerably decreased renewable energy generation expenditure over last 4-5 years.
In the next 30 years the contribution of renewable energy to the total electric energy demand will be as follows: Photovoltaic systems 16.2%, solar thermal power 9.2% and Wind energy 3.5%-4.7%.
The global deployment of renewable energy from wind and solar grew in 2012 but the income from the sector remained flat due to the plummeting costs for solar photovoltaic panels.