New Energy Outlook 2016

Cheaper coal and cheaper gas will not derail the transformation and decarbonisation of the world’s power systems, according to the 2016 New Energy Outlook by Bloomberg New Energy Finance.

By 2040, zero-emission energy sources will make up 60% of installed capacity. Wind and solar will account for 64% of the 8.6TW of new power generating capacity added worldwide over the next 25 years, and for almost 60% of the $11.4 trillion invested.

Within Asia Pacific, new power generation capacity will experience colossal growth, with installed capacity tripling and electricity generation doubling. Renewable energy will make up nearly two-thirds – or $3.6tn – of the 4,890GW added during this period. This mountain of capacity will drive renewable energy penetration to 38% by 2040, up from 21% in 2015.

However, coal will remain the biggest source of electricity for the region through 2040. As a result, power sector emissions in Asia Pacific will not peak during this forecast period, rising to 9.9Gt per year in 2040, up 32% compared with 2015.

By: BloombergNEF