According to BNEF's latest forecast, the cost of wind, solar and battery technology will drop significantly by 2050, which will cause the grid to provide nearly half of the electricity from these two renewable sources.
Every year, NEO compares the cost of energy technology through energy cost analysis. This year, the report found that in about two-thirds of the world's regions, wind or solar energy is the cheapest option for adding new energy.
Electricity demand is expected to grow by 62%, which will cause global power generation capacity to nearly triple between 2018 and 2050.
NEO first analyzes technology trends and fuel prices to build a view of the lowest cost of the ever-changing power industry. The study shows that by 2050, the proportion of coal in the global power structure will fall from the current 37% to 12%, and oil as a power generation resource has actually been eliminated. By 2050, wind and solar power generation will increase from the current 7% to 48%. The proportion of hydropower, natural gas and nuclear energy is roughly the same. However, to achieve this level of transformation, other policy changes are needed. That is, reforming the electricity market to ensure that the contribution of wind, solar and batteries to the grid is properly reassessed.
NEO 2019 is the result of a detailed study of the energy needs and supply prospects of 65 BNEF analysts around the world. It draws on BNEF's market-leading research results in the economic development of different power generation sources.
The full text of NEO 2019: https://about.bnef.com/new-energy-outlook/