In the future, 70% of new global power generation investment will be used for renewable energy

As the cost of renewable energy such as wind power and solar energy gradually decline, they will receive more and more investment in the next 20 years.

On July 25th, Bloomberg New Energy Finance held the 2017 New Energy Market Long-Term Outlook Seminar. Its forecast report “New Energy Outlook 2017” (hereinafter referred to as “Outlook”) indicates that in 2017-2040, the global new The total investment in generating electricity was 10.2 trillion U.S. dollars, and the total investment in new renewable energy was 7.4 trillion U.S. dollars, accounting for 72% of the total investment in new electricity generation.

"Outlook" shows that of the $7.4 trillion new renewable energy investment, solar energy investment will account for 2.8 trillion U.S. dollars and wind power investment will account for 3.3 trillion U.S. dollars.

At present, wind power and solar energy respectively account for about 12% and 5% of the global installed capacity. Bloomberg New Energy Finance predicts that by 2040, solar installed capacity will jump 14 times from the current, wind power installed capacity will increase by 4 times, wind power and solar energy will account for 48% of global installed capacity and 34% of power generation.

The above forecast is based on a significant drop in wind and solar energy costs. At present, the levelization cost of photovoltaic power generation is about 1/4 of that in 2009. Bloomberg New Energy Finance predicts that by 2040, the cost of photovoltaic power generation will further drop by 66%. By 2021, solar energy prices in China, India, Mexico, the United Kingdom, and Brazil will be lower than coal-fired electricity.

The cost of wind power will also drop rapidly. Bloomberg New Energy Finance predicts that the cost of offshore wind power will drop by 71% before 2040, and the cost of onshore wind power will further decrease by 47% on the basis of a 30% drop in the past eight years.

In the good growth trend of renewable energy, coal power will be hit. The above report predicts that coal demand in China will maintain a growth of around 20% in the next 10 years and will reach its peak in 2026. The amount of coal used in Europe will be significantly reduced by 87% by 2040, while the amount of coal used in the US electricity sector will also be reduced by 45%.

In addition, Bloomberg New Energy Finance expects that 369 GW of planned new coal-fired power projects will be cancelled globally, of which 1/3 are in India, and thermal coal demand in the global electricity sector will be reduced by 15% during 2016-2040.

Specific to the region, in the next 20 years, the Asia-Pacific region will be the main market for energy investment, and the total investment scale of the Asia Pacific region in the field of power generation will be equivalent to the sum of other regions in the world. Among them, wind power and solar energy each accounted for nearly 1/3, nuclear power investment accounted for 18%, and coal and natural gas investment accounted for 10%.

China and India are also the main players in this major market in the Asia Pacific region. Bloomberg New Energy Finance said that China and India are expected to have $4 trillion in investment opportunities in the energy sector. By 2040, China and India will account for 28% and 11% of the cumulative investment in global power generation.

In the field of global power generation emissions, the "Outlook" indicates that global carbon dioxide emissions in the electricity sector will peak in 2026 and then begin to decline. Before reaching the top, it will continue to grow by 10%. This is consistent with the trend of China's coal power generation.

"Overall, the global emissions in 2040 will be 4% lower than 2016 levels, but it is far from enough to achieve the goal of keeping global warming within 2 degrees Celsius." Bloomberg New Energy Finance stated, "To achieve the goal of 2 degrees Celsius , the global must invest further 53,000

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