The International Energy Agency (IEA) has just published what it is calling the first comprehensive roadmap for transitioning the world to a net zero energy system by 2050. Turns out, it's only going to take a complete overhaul of pretty much everything to hit this important target. We are going to need to start investing some $820 billion each year (starting in 2030) on our electrical grids to support the electrification of the global economy. 90% of electricity generation is going to need to come from renewables, with 70% likely coming from solar PV and wind alone. 60% of global car sales will need to be electric by 2030. We'll need to completely halt the sale of internal combustion engine vehicles by 2035. And by 2040, we will need to have retrofitted at least half of our existing building stock.
Make no little plans. For a copy of the report, click here.
Two things struck me today.
First, I read Bloomberg Green's daily newsletter (Nathaniel Bullard) and came across the following statistic. In 2001, the world installed 290 megawatts of solar generating capacity. This year, the world is likely to install more than 100 gigawatts of solar -- that's 350x more per year than we were installing 19 years ago. You can also see how things have changed by looking at the above chart showing wind and solar asset financing per year.
The United Nations and Bloomberg New Energy Finance recently published a report covering global trends in the renewable energy space for 2017.
Here are some of their key findings:
- 2016 was a record year in terms of renewable power capacity installed worldwide. This includes wind, solar, biomass and waste-to-energy, geothermal, small hydro, and marine sources.
- The share of global electricity generated from renewable sources rose from 10.3% (2015) to 11.3% (2016).
- However, overall investment in renewables declined in 2016 for two main reasons. Costs went down (good news). And China and Japan exhibited a dramatic slowdown in terms of investment activity (bad news).
- Acquisitions of renewal assets, such as wind farms and solar parks, hit a new peak at $72.7 billion.
- A number of promising new pricing records set in 2016: $29.10 per MWh for solar in Chile and $30 per MWh for onshore wind in Morocco.
- In one year, the cost of solar generation dropped on average about 17% and onshore wind dropped about 18%.
The International Energy Agency (IEA) has just published what it is calling the first comprehensive roadmap for transitioning the world to a net zero energy system by 2050. Turns out, it's only going to take a complete overhaul of pretty much everything to hit this important target. We are going to need to start investing some $820 billion each year (starting in 2030) on our electrical grids to support the electrification of the global economy. 90% of electricity generation is going to need to come from renewables, with 70% likely coming from solar PV and wind alone. 60% of global car sales will need to be electric by 2030. We'll need to completely halt the sale of internal combustion engine vehicles by 2035. And by 2040, we will need to have retrofitted at least half of our existing building stock.
Make no little plans. For a copy of the report, click here.
Two things struck me today.
First, I read Bloomberg Green's daily newsletter (Nathaniel Bullard) and came across the following statistic. In 2001, the world installed 290 megawatts of solar generating capacity. This year, the world is likely to install more than 100 gigawatts of solar -- that's 350x more per year than we were installing 19 years ago. You can also see how things have changed by looking at the above chart showing wind and solar asset financing per year.
The United Nations and Bloomberg New Energy Finance recently published a report covering global trends in the renewable energy space for 2017.
Here are some of their key findings:
- 2016 was a record year in terms of renewable power capacity installed worldwide. This includes wind, solar, biomass and waste-to-energy, geothermal, small hydro, and marine sources.
- The share of global electricity generated from renewable sources rose from 10.3% (2015) to 11.3% (2016).
- However, overall investment in renewables declined in 2016 for two main reasons. Costs went down (good news). And China and Japan exhibited a dramatic slowdown in terms of investment activity (bad news).
- Acquisitions of renewal assets, such as wind farms and solar parks, hit a new peak at $72.7 billion.
- A number of promising new pricing records set in 2016: $29.10 per MWh for solar in Chile and $30 per MWh for onshore wind in Morocco.
- In one year, the cost of solar generation dropped on average about 17% and onshore wind dropped about 18%.
Second, I read about Fred Wilson's SunPower Solar system and how, since May, he has been able to satisfy 91.5% of his home's electrical needs via solar (this includes an electric vehicle). In fact, during the month of May when temperatures were a bit cooler, he had a surplus. He was producing more than he was consuming, and so he was selling that excess production back into the grid. It wasn't until the summer months and higher AC usage that he started having a shortfall.
Now I don't know where his house is located or what its roof looks like, but it is interesting to consider both the macro and micro scale. 91.5% signals to me that it shouldn't be much longer before many people and many homes no longer need to draw any power from the grid. That's going to be a game changer.
Chart: Bloomberg Green
Second, I read about Fred Wilson's SunPower Solar system and how, since May, he has been able to satisfy 91.5% of his home's electrical needs via solar (this includes an electric vehicle). In fact, during the month of May when temperatures were a bit cooler, he had a surplus. He was producing more than he was consuming, and so he was selling that excess production back into the grid. It wasn't until the summer months and higher AC usage that he started having a shortfall.
Now I don't know where his house is located or what its roof looks like, but it is interesting to consider both the macro and micro scale. 91.5% signals to me that it shouldn't be much longer before many people and many homes no longer need to draw any power from the grid. That's going to be a game changer.
Chart: Bloomberg Green
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