The wind and solar industries are set to attract substantially higher investment than fossil fuels over the next several decades, according to a new assessment from Bloomberg New Energy Finance.
Between now and 2040, an estimated $7.8 trillion in investment will pour into the renewable energy industry, more than double the $3.2 trillion that Bloomberg expects to be invested into the coal, natural gas and oil industries.
More staggering is that individual renewable energy technologies will garner as much or more investment dollars than the entire fossil fuel industry.
For example, onshore and offshore wind will see $3.1 trillion in investment, whereas rooftop and utility-scale solar alone will see $3.4 trillion in investment, more money than all the oil wells, natural gas wells and coal mines combined.
The cost of renewables technology is set to keep falling into the next decade, boosting the economic case for clean energy, according to an industry group.
The average cost of electricity from a photovoltaic system is forecast to plunge as much as 59% by 2025, according to a report on Wednesday by the International Renewable Energy Agency.
The technology last year produced energy that was already 58% cheaper than it was in 2010, the Abu Dhabi-based industry group said.
Solar and wind, as technologies, see costs decline the more they are deployed. Fossil fuels, including coal, gas and oil do not enjoy the same cost structures, as natural resources face upward price pressure the more they are extracted and consumed.
Globally, 60% of electricity generation are forecast to come from zero-emissions sources by 2040.
The shift to cleaner energy in the electric power sector is already underway, but for transportation sector (oil versus electric vehicles), the transition is predicted to be slower. However, Bloomberg said electric vehicles will increasingly take up market share at the expense of oil.
