The energy crisis is looming ahead. The non-renewable energy resources that are fuel and coal continue to decline while the global economy’s demand for electricity continues to rise.
According to Forbes, electricity demand will rise by 62% and is expected to triple in capacity by 2050. Due to this looming energy crisis and forecast of rising electricity demands, energy investors are shifting their focus to the renewable industry. The International Energy Agency (IEA) reports that while the economy suffered due to COVID-19, the market for renewables is getting stronger.
The forecast says that by 2025, Solar and Wind energy would eventually displace coal as the largest source of the world’s power. The scenario speaks of 130GW of solar will be added each year between 2023-2025 and will continue to accelerate to 165GW.
Wind energy is also seen to expand but with a smaller contribution than solar energy. The leading consumers of energy, the US, and Europe, are expected to exceed the demands of renewable resources as they are beginning to replace outdated fossil fuel infrastructure. However, Asian nations will still depend on fossil fuel resources over the next five years while slowly transitioning to renewables (source IEA).