The market share of alternative sources in the global energy market is set to increase from 8 per cent currently to over 20 per cent by 2030, according to a report.

 

Key drivers for the renewable energy sector growth are the declining oil reserves, global warming issues, energy security risk due to sensitive geopolitical stability and the increasing demand with growth of population, the report by MTI Consulting, a leading international strategy consultancy. 

 

Renewables are the fastest-growing source of world energy, with consumption increasing by 3.0 percent per year. Renewable energy will be the main energy source for world electricity generation, it said. Already 14 per cent of global energy supply is accounted for by renewables. On longer term (from 2012 to 2020), alternative energy supply is expected to grow at 7.5 per cent annually, MTI’s Thought Leadership Report on the Global Alternate Energy Outlook said. 

 

There is a large potential for renewable resources in the world which, up to this point, have remained largely untapped. In many parts of the world, an abundance supply of renewable energy such as solar, wind, geothermal and hydro exists, it said.

 

By harnessing the renewable energy, countries will not only be able to provide for their own needs, but make a significant contribution to their economies by exporting electricity from clean energy sources to other regions. 

 

Renewable energy has the potential of meeting all world energy demands if utilized properly, said the report. 

 

Renewable energy is broken down into wind power, biomass energy, geothermal energy and solar based power. The global market for wind power has seen a tremendous growth with the past five years experiencing a whopping 25 per cent average growth rate. Biomass energy is used mostly for heating and cooking and it accounts for 10 per cent of the world’s total energy needs. Furthermore, the amount it contributes to global energy is likely to quadruple by the year 2050. 

 

Moreover, the potential for geothermal energy is extremely significant. High quality resources for the production of geothermal energy are already in existence today, said the report. 

 

Solar energy is the most abundant of all alternative energy sources. However, it currently only provides for less than 1 per cent of the world’s commercial energy. Solar growth is concentrated only in a few countries that have the technology to use solar energy to generate electricity. Yet, in light of rising fossil fuel prices on one hand, and advances in solar technologies on the other, the price of solar energy is decreasing and becoming more attractive, the report said.

 

The there was a 2.5 per cent growth in world energy consumption in 2011. This was less than half the rate that was experienced in 2010 but it was close to the historical average. Overall, growth has reduced for all fuels and for all regions.

 

Meanwhile, the world’s economies spent just over 1 per cent of their economic output on oil in 1999. By 2007, spending on oil was up to 4 per cent, the report said. – TradeArabia News Service