Solar & Wind Set to Generate 50% of Global Electricity by 2050

Each year, Bloomberg NEF, a leading industry research firm, releases its annual report titled the New Energy Outlook (NEO), which focuses on the global electricity sector. This year's report has some fascinating insights, particularly regarding renewable energy. According to the report, solar and wind power are expected to account for 50% of the world’s electricity production by 2050.

While solar will play the largest role in this transition, wind energy will also contribute significantly. A key driver behind this shift is what experts are calling the 'battery boom.' More and more homeowners are now storing their own solar energy instead of relying on traditional power grids, which is helping to accelerate the adoption of renewable energy sources.

The combination of declining battery costs, rising energy prices from conventional sources, and other economic factors has greatly fueled the growth of solar energy systems. These changes are making renewable energy not only more accessible but also more appealing to consumers who are looking for sustainable alternatives.

The Rise of Solar Batteries

Seb Henbest, the Head of Europe, Middle East, and Africa for BNEF and lead author of the NEO 2018 report, highlighted some interesting points:

“We anticipate that by 2050, a staggering $548 billion will be invested in battery capacity worldwide. Two-thirds of this investment will go towards grid-level installations, while the remaining third will be used for home and business installations behind the meter."

"The emergence of affordable battery storage solutions will allow for greater flexibility in delivering electricity from wind and solar sources. This means that renewable energy can meet demand even during periods when the sun isn't shining or the wind isn't blowing. As a result, we'll likely see a significant reduction in the market share traditionally held by coal, gas, and nuclear energy."

Another notable finding is the ongoing decline of coal usage globally. By 2020, coal’s contribution to global electricity generation is projected to drop to just 11%. Currently, coal accounts for 38% of global electricity production, but its dominance is rapidly diminishing due to competition from cheaper, cleaner energy options such as wind and solar power. Additionally, the increasing affordability of batteries and natural gas for meeting peak energy demands is further squeezing coal out of the picture.

Elena Giannakopoulou, Head of Energy Economics at Bloomberg NEF, added:

“Coal is set to face stiff competition from wind and photovoltaic (PV) systems for bulk electricity generation, along with batteries and natural gas for providing flexible energy supply. In the long term, the future of the electricity system will revolve around inexpensive renewable energy, leaving coal with very little room to thrive."

Become Part of the Growing UK Solar Community

As battery technology continues to gain traction, the demand for fossil fuels is steadily decreasing. It’s truly inspiring to witness this transformation toward cleaner, greener energy solutions. If you’re interested in becoming self-sufficient and generating your own renewable energy, don’t hesitate to reach out. Call us today at 0800 112 3110 or fill out our brief inquiry form to learn more about how you can join the solar revolution!