BAKU, Azerbaijan, Dec.3. Showing a much brighter outlook than fossil fuels, solar and wind energy consumption will surge by 11% during 2023 (although from a smaller base) as more projects come online, Trend reports Dec.3 with reference to the Economist Intelligence Unit (EIU).
“We forecast that solar and wind capacity addition will remain strong during our forecast period, prompting renewable energy consumption to grow at an annual average rate of 10% during the next ten years. Asia is and will continue to be the world’s biggest market for renewable energy investment, with the lion’s share going to China, India, Japan and South Korea. However, the commodity price boom will divert some investment towards fossil-fuel projects. Higher interest rates will also increase the cost of financing renewable energy projects, slowing down the pace of the energy transition. Financial support for energy transition projects in developing countries could further diminish, disproportionately affecting poor and vulnerable geographies,” reads the EIU report.
EIU analysts note that the energy crisis will prompt some governments to rethink their plans to phase out nuclear power, as sentiment shifts in favour of reliable energy supplies.
“Japan, which idled its nuclear plants in the wake of the Fukushima Daiichi disaster in 2011, plans to restart seven nuclear reactors by the summer of 2023. Including these seven, Japan currently has 23 commercially operable but offline nuclear reactors. In all, the country’s reactors have a combined installed power-generation capacity of 21.7 GW. We do not rule out the Japanese government announcing the restart of more nuclear reactors during 2023. A more striking example is Germany. After the Fukushima disaster, Germany started shutting down its nuclear power plants, with three remaining ones set to close by the end of 2022. However, energy security challenges have forced the country to make a u-turn on its nuclear policy. Recent comments by the government suggest that the country could extend the lifespan of the remaining plants. Other countries, such as India and China, are also likely to renew focus on nuclear energy in 2023.”
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