Published on January 29th, 2015 | by Joshua S Hill8
Frost & Sullivan Predict Renewables To More Than Double By 2025
January 29th, 2015 by Joshua S Hill
Global consulting firm Frost & Sullivan released a new analysis this week which forecasts the global installed capacity of renewable energy to more than double by 2025 — increasing from 1,566 GW in 2012 to 3,203 GW in 2025.
Specifically, solar photovoltaic, wind, and hydro will star as the top renewable energy methods — solar PV is expected to account for 33.4% of total renewable energy capacity additions over the 2012-2025 period, followed closely by wind at 32.7%, and hydro back at 25.3%.
One difficulty that Frost & Sullivan predicts for the coming years, however, is the impact the weak economic climate in the Western world will have on clean energy investment and support systems in those countries. For renewable energy to develop as the necessary energy source it has to be in the developing world, support schemes will be vital — and those are the exact things being impacted by a poor economic climate.
“It is little wonder then that renewable energy installations have seen a gradual shift in market power to emerging economies,” said Frost & Sullivan Energy & Environmental Industry Director Harald Thaler. “On account of urbanisation, population growth, energy security concerns, and strong economic development, regions such as Asia, Latin America, the Middle East and Africa have increasingly been contributing to renewable energy capacity growth.”
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The cost of renewable energy has declined “dramatically” according to Frost & Sullivan, with the cost of solar PV modules estimated to have dropped by 70% between 2008 and 2013 — making solar more cost-competitive with its fossil-fueled competitors. However, investment has declined over the recent years — “driven by equipment costs and weaknesses in key regions such as parts of Europe and the United States.”
The increasing cost-competitiveness of renewable energy is no surprise to most, nor the decreasing cost of solar which has minimized the impact of drops in clean energy investment. In fact, according to Frost & Sullivan, solar power capacity is expected to increase to 668.4 GW by 2025.