It’s no secret that the global energy demand continues to rise. Driven by emerging economies and non-OECD nations, total worldwide energy usage is expected to grow by nearly 50% by 2050. That’ll require a staggering amount of coal, oil and gas.
But it’s not just fossil fuels that will get the nod. The demand for renewable energy sources is exploding, and according to a new study, we haven’t seen anything yet in terms of spending on solar, wind, and other green energy projects. For investors, that spending could lead to some serious portfolio green as well.
The future is certainly looking pretty “green” for renewable energy bulls. A new study shows that the sector will receive nearly $5.1 trillion worth of investment in new power plants by 2030. According to a new report by Bloomberg New Energy Finance, by 2030, renewable energy sources will account for over 60% of the 5,579 gigawatts of new generation capacity and 65% of the $7.7 trillion in power investment.
The Bloomberg report shows that solar and wind will increase their combined share of global generation capacity to 16% from 3% by 2030.
The key driver will be utility-scale solar power plants, as well as the vast adoption of rooftop solar arrays in emerging markets lacking modern grid infrastructure. In Indian Cities, the lack of infrastructure will actually make rooftop solar a cheaper option for electricity generation
Given the anticipated spending spree in the sector, investors who choose to “go green” could see their holdings grow along with the demand for energy.