By 2050, 85% of global electricity needs and 44% of total energy needs will be met by renewable sources of energy, according to the Energy Transition Outlook 2017 report.
The report, published by Dutch quality assurance and risk management company, considered only solar photovoltaic (PV), onshore and offshore wind and hydropower plants.
It is expected that final energy demand will be 430 exajoules in 2050, compared to 400 exajoules in 2015 with a minor increase to occur before 2030, when demand will start flattening due to decelerating population and productivity growth, energy efficiency measures, and increased electrification.
Electricity consumption is thus projected to increase by 140%, becoming the largest energy carrier.
These projections have significant implications for energy companies.
“Ultimately, it will be a willingness to innovate and a capability to move at speed that will determine who is able to remain competitive in this dramatically altered energy landscape,” it is cited.
Solar PV and wind power will lead the sector growth, while hydro power will keep being a key energy source.
Source: DNV GL