July 10, 2020 (Investorideas.com Newswire) As the global economies try to mitigate the COVID-19 impact, investment in renewable energy expansion becomes an important cog in the wheel towards the economic recovery journey. Expanding the renewables will not only help countries deliver stronger climate action under the Paris Agreement but also fuel the economic activities across the value chain forming a powerful recovery mechanism to recuperate from the COVID-19 crisis, says GlobalData, a leading data and analytics company.
Due to technological advancements, economies of scale and competitive auctions, the Levelized Cost Of Electricity (LCOE) for renewables has seen steep decline. The LCOE of solar PV had witnessed a drop of 86% to reach 0.05USD/kWh in 2019 when compared with 2010. Likewise, for onshore wind the drop was 50.0% to 0.05USD/kWh.
The declining LCOE has brought the renewable at par with fossils and in some countries even cheaper. This trend of cost competitiveness and innovation is likely to continue and could attract countries and investors to increase their renewable appetite. For instance, 2019 saw the highest solar power capacity additions and also the highest investment in the offshore wind segment.
However, the planned investments in this sector until 2030 is lesser than the investments made in the last decade. The COVID-19 pandemic recovery stimulus provides an excellent window of opportunity for governments to channelize their investments in the renewables to offset the silos in the future investment schedule. These were earlier unable to reach the desired 2030 installations target decarbonizing the economy and putting forward a strong step towards climate sustainability.
Somik Das, Senior Power Analyst at GlobalData, comments: "During the COVID-19 pandemic, renewable energy took the center stage. With declining electricity demand, utilities focussed on generating electricity from cost-effective renewable sources. By the end of 2030, the cumulative renewable installed capacity is estimated to be 3,600GW, about 1,900GW more than that of 2020, which is substantially lower than the required built-up of about 2,800-3,000GW for limiting the global temperature rise by 2'C.
"Incorporating higher investments in renewable energy might provide an opportunity to increase the investments and make up for the shortfall in the required installed power capacity by 2030.
"Hence, increased investments in renewable energy in the recovery packages would benefit greatly and usher in a multitude of economic benefits. Not only it will provide a better opportunity in addressing climate change goals and global warming issues but also creates new jobs and stimulate economic activities."
For more information
To gain access to our latest press releases: GlobalData Media Centre
Analysts available for comment. Please contact the GlobalData Press Office:
EMEA & Americas: +44 (0)207 832 4399
Asia-Pacific: +91 40 6616 6809
Notes to Editors
This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData's team of industry experts
4,000 of the world's largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make timelier and better business decisions thanks to GlobalData's unique data, expert analysis and innovative solutions, all in one platform. GlobalData's mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, technology, energy, financial and professional services sectors.
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/