Global carbons emissions from energy production remained stable in 2015, indicating a slowdown in demand for power, according to a report by GlobalData.
Titled “Power Market Status and Trends 2016”, the report states that global carbon emissions from energy production in 2015 recorded the lowest growth in the last 25 years, with the exception of 2009.
The global power industry is currently dependent on thermal fuel sources for power generation due to abundance of coal reserves in many countries. In 2015, global installed power capacity increased to 6,241GW from 5,000GW in 2010 at a compound annual growth rate (CAGR) of 4.3%.
GlobalData’s practice head covering power Ankit Mathur says although thermal power remains dominant in the global power market, the overall installed thermal power capacity is expected to decline from the existing 62.6% to 53.6% by 2025.
Countries such as China and the US are adopting clean coal technology to improve efficiency and reduce emissions. Countries that have abundant coal reserves, such as the US, China, Japan, Russia, and India are developing coal power plants, while those dependent on imported coal are decreasing coal imports to curb emissions.
The report also indicates that there is a shift in the fuel mix used in energy production from coal to low-carbon fuels such as natural gas. Renewable power is expected to become the fastest growing market segment and increase its share in the global power market in the future.
Installed capacity of renewable energy excluding hydro increased from 321.6GW in 2010 to 787.5GW in 2015, at a CAGR of 19.6%, while installed capacity is expected to reach 2,150GW by 2015. Renewable power accounted for 4.6% of the global installed power capacity in 2010, which increased to 12.6% in 2015. The share is expected to increase further to 23% by 2025.