Expert Sees 7.5pc Growth in Alternative Sector by 2020

ABU DHABI - 2009 will be a consolidation year for the renewable energy sector across the world mainly due to global economic slowdown according to Dr Miroslav Durana, Director and Head - Alternative Energy Research of Credit Suisse.

By Staff Report

Published: Thu 22 Jan 2009, 1:31 AM

Last updated: Sun 5 Apr 2015, 9:37 PM

Talking to Khaleej Times on the sidelines of the ongoing World Future Energy Summit (WFES) here, Dr. Durana said that there is a limited chance of further growth in the investments in alternative energy sector this year. “It will be a good thing to happen if the investment level of $150 billion from last year in the sector could be maintained this year too.”

However, on the medium term horizon, we expect 7.5 per cent annual growth in the alternative sector by 2020. This will be three times higher than the 2 per cent annual growth in the conventional energy sector, he said.

The total investment in the clean energy market is likely to quadruple to $600 billion by 2020, mainly due to rising energy needs, declining oil reserves, addressing climate change and energy security aspects.

Presently, solar and wind energy accounts for less than one per cent each of the total energy generated. Hydro, bio-mass and other sectors account for around 7 per cent. But all these renewables including geo-thermal are expected to make a quantum jump in terms of their share in the total energy mix in the next couple of years, he said.

According to Dr Durana, the main reason for the projected growth of renewables is the possibility of overall increase in demand for energy, consequent to anticipated increase in the global population from 6.5 billion to 8.5 billion by 2030. Even now, about 1.5 billion people across the world do not have access to electricity. The conventional fossil fuel-based power generation will not be sufficient to meet these growing demands, especially in the wake of the limited reserves of hydrocarbon.

Energy security was another issue which would prompt countries to explore renewables. Countries like the US and China will have to reduce their dependence on imported fuel and to address the climate change issues in future. The commitment to reduce carbon emissions is another reason that will draw the countries to renewables, he said.

ramavarman@khaleejtimes.ae