The International Energy Agency (IEA) has said that the renewables share in global power generation will increase to more than 40% by 2040 from the current 25%.
In its flagship publication World Energy Outlook (WEO) 2018, the Paris-based autonomous intergovernmental organisation has revealed that renewables in power markets have become the technology of choice.
The increase is due to reduced costs and support from government policies. It also noted that natural gas remains the second-largest source of energy, with coal as the largest.
The WEO 2018 outlines the global power generation trends and the possible impact they will have on the supply and demand, carbon emissions, air pollution, and energy access.
IEA stated that ‘power systems will need to make flexibility the cornerstone of future electricity markets’.
Furthermore, market reforms, grid investments, and improving demand-response technologies such as smart meters and battery storage technologies are expected to help countries across the globe to increase solar photovoltaics and wind share.
IEA executive director Dr Fatih Birol said: “Our analysis shows that over 70% of global energy investments will be government-driven and as such the message is clear; the world’s energy destiny lies with government decisions.
“Crafting the right policies and proper incentives will be critical to meeting our common goals of securing energy supplies, reducing carbon emissions, improving air quality in urban centres, and expanding basic access to energy in Africa and elsewhere.”