13.000 billion dollars for worldwide solar and wind production until 2050Ilumen
To make the transition to green energy possible, over the next 30 years around 13.000 billion dollars will have to be invested worldwide in solar modules and wind turbines. This significantly reduces CO2 emissions, which will be in line with the goals of the Paris climate agreement.
These conclusions emerge from an analysis by ING, which relies on figures from the International Energy Agency (IEA) and Bloomberg.
Gerben Hieminga, energy sector economist, is not surprised by the conclusions of the study, which took more than a month. “The energy system simply becomes more expensive and we knew that it involvs large amounts of money.
He nuances that sustainable energy is actually expensive. “Only in 2040 will more be invested in sun and wind than in oil and gas.” So even if you don’t make it more sustainable, thousands of billions of dollars will have to be invested in fossil fuel: the electricity will then be generated with oil, gas and coal, says the economist.
66% wind and sun
Wind and sun currently supply 8% of the electricity worldwide. With $ 13,000 billion in investments, that could amount to around 66% in 2050, ING said. 7.3 billion dollars will have to go to wind energy.
Much depends on technology in the so-called energy transition. ING has made calculations for a scenario in which technology continues to develop energetically. In other words: the costs are falling and the efficiency is increasing, something that has strongly applied to both wind and solar energy in recent years. Then there is a sea of uncertainty. Such as: what will the role of hydrogen, nuclear energy or biomass be?
Paradoxically, the huge increase in power is not immediately a simple opportunity for business, says the sector economist. In the long term, solar and wind energy are cheaper than electricity from fossil sources. The electricity price is therefore expected to fall. Moreover, the electricity price becomes more dependent on the weather and will fluctuate more. Higher peaks, deeper falls, greater unpredictability. Hieminga: “It is becoming more challenging to reap the benefits.”
Source: Financieel Dagblad