A key energy report has said that as the cost of generating clean energy drops, cheap coal and gas prices will not stop record investment in renewables over the coming decades. It said that low prices for coal and gas are likely to persist, but will fail to prevent a fundamental transformation of the world electricity system over coming decades towards renewable sources. By 2040, zero-emission energy sources will make up 60% of installed capacity. Wind and solar will account for 64% of the 8.6TW of new power generating capacity added worldwide over the next 25 years. The price of power from wind and solar panels may drops by 41 and 60 per cent respectively due to cheap gas and coal prices.
Further the report talking about India said that energy demand in India which, despite a big push towards solar, continues to rely heavily on dirty coal are forecast to nearly quadruple in the next quarter century, that makes India the key to the future global emissions trend, as electricity demand are expected to grow 3.8x by 2040.
The New Energy Outlook 2016 forecast, which is annual long-term view of how the world's power markets will evolve in the future, stated that by 2040 renewables are set to attract $7.8 trillion, nearly four times as much as carbon-based power over the same period. The energy sector records for two-third of the greenhouse gas emission that drive global warming. Currently, 80 per cent of global energy consumption is drawn from fossil fuel.
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