BP, a UK-based oil and gas company, has issued its Energy Outlook 2016 which forecasts renewable energy as the fastest growing fuel over the next 20 years.
The BP Energy Outlook 2016 report, which outlines the ‘most likely’ path for the global energy landscape to 2035, states that renewable energy will grow rapidly at 6.6% per year, causing its share in primary energy to rise from around 3% today to 9% by 2035.
When it comes to power generation, renewables are predicted to account for over a third of the growth in power generation by 2035, causing their share of global power to increase to 16%.
The rapid growth in renewables is supported by the expected pace of cost reductions.
BP’s report states that the EU countries will lead the way in the use of renewable power. However, in terms of volume growth to 2035 the EU is surpassed by the US, and China adds more than the EU and US combined.
The renewables will be the largest source of power generation in the EU with a share of 36% by 2035, according to the report. It also states that by 2035, the penetration of renewables in some OECD markets is expected to reach levels where the challenge of integrating intermittent sources into the power grid becomes an increasing constraint.
As for the other sources of energy, the report states that the fossil fuels are expected to remain the dominant form of energy powering the global expansion, with gas listed as the fastest growing fossil fuel with predicted increase of 1.8% a year.