Global renewables to increase to 9% from 8% by 2030

WASHINGTON, DC, US, June 28, 2006 (Refocus Weekly)

The market share of renewable energies around the world will increase by only one percentage point over the next quarter-century, according to U.S. data.

The global consumption of marketed energy will grow by 71% between 2003 and 2030 under the reference case projection of the latest International Energy Outlook from the Energy Information Administration. The strongest growth will be in developing countries, especially China and India, where “robust economic growth drives the increase in energy use.”

Fossil fuels will continue to supply much of the world’s energy, and oil will remain the dominant source as consumption of marketed energy increases by an average of 2% per year to 2030. In some non-members of the Organization for Economic Cooperation & Development (OECD), growth in energy demand will be double as annual economic activity (GDP) expands 5%, compared with 2.6% in OECD economies.

“Rising fossil fuel prices also allow renewable energy sources to compete economically in the electric power sector,” it explains. “Consumption of hydroelectricity and other grid-connected renewable energy sources expands by 2.4% per year, approximately the same as the rates of growth projected for natural gas and coal, and the renewable energy share of the world’s total energy consumption increases from 8% in 2003 to 9% in 2030.”

Much of the anticipated growth in green power results from the completion of large hydroelectric facilities in non-OECD nations, especially in Asia, “where the need to expand electricity production with associated dams and reservoirs often outweighs concerns about environmental impacts and the relocation of populations,” it explains. China, India and Laos are constructing new large-scale hydro facilities and, with the exception of the 7,500 MW Southeast Anatolia hydro station in Turkey, “most hydroelectric resources in the OECD nations already have been developed or lie far from population centers. As a result, non-hydroelectric marketed renewables, such as wind, solar, geothermal, and biomass, are expected to account for most of the growth in OECD renewable energy use, given government programs and policies to encourage their expansion.”

Net electricity consumption around the world doubles in the reference case, from 14,781 billion kWh in 2003 to 21,699 b-kWh in 2015 and 30,116 b-kWh in 2030. Most growth in power demand occurs in non-OECD nations, which will average 3.9% per year to 2030, compared with 1.5% in OECD nations.

Increases are projected for all primary energy sources in generation, with coal and natural gas remaining the most important fuels and accounting for two-thirds of the total increase in energy used to generate electricity. Consumption of nuclear power increases from 2,523 b-kWh in 2003 to 3,299 b-kWh in 2030 under the reference case, as “higher fossil fuel prices and concerns about security of energy supplies are expected to improve prospects for nuclear power capacity over the projection period, and many countries are expected to build new nuclear power plants.”

Global nuclear capacity rises from 361 GW in 2003 to 438 GW in 2030, with “significant declines in capacity projected only for Europe, where several countries have either plans or mandates to phase out nuclear power, or where old reactors are expected to be retired and not replaced.”

Trends in end-use sector energy consumption vary widely and, on a global basis, energy demand in the industrial sector will grow by 2.4% per year and 1.7% in the residential buildings sector and 1.8% in commercial buildings. The slowest growth in energy demand is projected for transportation, at 1.4% per year. The 2005 EIA forecast had predicted transportation energy use would grow at the same rate as industrial and faster than buildings, but higher world oil prices are largely responsible for the slower growth in transportation demand.

Carbon dioxide emissions will continue to increase steadily around the world, from 25,000 metric tonne in 2003 to 33,700 Mt in 2015 and 43,700 Mt in 2030. Three-quarters of this projected increase results from fossil fuel consumption in non-OECD countries.

EIA is the statistical and analytical agency of the U.S. Department of Energy.


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