Global Investment in Renewable Energy Could Reach $3.40 Trillion by 2030_ Report

Global investments in the renewable energy sector are expected to rise to $3.4 trillion by 2030, including an estimated investment of $2.72 trillion in solar and wind energy sectors, according to Frost & Sullivan‘s latest research analysis.

According to the report titled ‘Growth Opportunities from Decarbonization in the Global Power Market, 2019-2030,’ the most developed markets are expected to shift towards renewable energy, while the coal energy sector is expected to decline.  The installed capacity of renewable energy and hydropower is estimated to be around 54.1% by 2030, with solar and wind making up 37.9%.

“The global power sector will witness strong growth in decentralization during the decade, with an annual investment increasing from $53.14 billion in 2019 to $92.54 billion in 2030,” said Vasanth Krishnan, Senior Research Analyst of Industrial Practice, Frost & Sullivan.

The research report stated that it would be tough for conventional power project operators to remain profitable while competing with alternative power source operators.

According to the research report, development opportunities for market competitors will depend on different regions. India could expect capacity additions of around 72.04% for renewable energy in the upcoming decade.

Investments in Europe’s battery energy storage sector are expected to increase by around $12.91 billion annually until 2030, while the total installed capacity is expected to rise from 2.91 GW in 2019 to 70.02 GW in 2030.

Frost & Sullivan stated that the solar power sector in the middle east would witness an upswing due to Saudi Arabia’s shift in its energy policy. It added that China’s energy storage sector would expand rapidly due to investments towards battery storage production capacity. North America’s energy service and performance contracting market would be worth around $19.14 billion by 2030 with strong market development, while electricity demand in Latin America is expected to increase 3.15% annually to 2030 due to population and gross domestic product growth as well as rapid industrialization.

Krishnan added, “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.”

Mercom’s 1H and Q2 2020 Solar Funding and M&A Report said that total corporate funding – including venture capital funding, public market, and debt financing – dipped 25% to $4.5 billion (~₹336.09 billion) in the first half of 2020 (1H 2020) from $6 billion (~₹448.13 billion) in the same period last year.