Bloomberg has published their annual long-term outlook on the global power sector. Highlights-
- Wind- Is already the lowest levelized cost of generation in many regions. Larger and more efficient turbines will continue to reduce generation costs.
- Solar- Will continue with annual 28% reduction on cost curve. Increases in efficiency will continue to increase capacities.
- Batteries- Costs will continue to drop. By 2030, renewables plus batteries will operate together as cost-effective dispatchable units, addressing variability, and displacing new-build fossil.
- EV’s- Cost of batteries will drop to R1,400.00/kWh by 2025, bringing capital costs of EV’s in-line with internal combustion engines– the tipping point.
Together, these trends will result in wind and solar providing 50% of global electricity by 2050, and EV’s being 55% of all sales by 2040. Pervasive renewables combined with economic storage will fundamentally remake the electricity sector.
With the strong sun (300+ sun days) and the trade winds, we’re gonna store the over-capacities during the day into hydrogen. (In Fuerteventura, the Canary Islands) – everyone is talking about the costs of batteries, but even if the recycling problem is or will be solved, what about the water waste during the mining of lithium? There is an environmental concern. I see the future in smart cities, smart grids, and decentralised, small power generating units, which combines renewable with recycling. Thank you for sharing, at least there is a positive tendency, awareness and change.