BAKU, Azerbaijan, May 6
By Leman Zeynalova – Trend:
Renewables will get out of the current crisis with minimal demand loss, says Wood Mackenzie, as it comments on what falling gas and LNG prices mean for solar, wind and energy storage markets around the world in the short and long term, Trend reports.
“Our forecast for both wind and solar remains strong – both are on track for record years in 2020. The current crisis will have a minimal impact on future demand,” reads the report released by Wood Mackenzie.
The company believes that over the next 20 years, the importance of thermal, coal, gas and nuclear in the global power mix will fade gradually, and renewables will step in to fill the gap. “While investment in clean energy may temporarily slow down, these delays won’t derail the progress of renewables altogether.”
Wood Mackenzie notes that renewables no longer rely on government subsidies to be competitive.
“With levelized cost of electricity falling below $30 per megawatt-hour, renewables compete extremely effectively with combined cycle gas turbines, even at prices as low as $2 per million BTU. As the market comes back into balance over the next few years, renewables will still gain the edge over fossil fuels,” the report says.
Wood Mackenzie expects a 17 percent drop in solar installations for 2020 but predict this to recover in 2021.
Onshore wind will be less affected in the near-term, according to the company.
---
Follow the author on Twitter: @Lyaman_Zeyn