Offshore wind levelized costs will slide 71% by 2040, according to the latest long-term forecast from Bloomberg New Energy Finance (BNEF).
The reduction in costs will be helped by development experience, competition and reduced risk, and economies of scale resulting from larger projects and bigger turbines, BNEF said in the New Energy Outlook 2017.
Overall, renewable energy sources such as solar and wind are set to take almost three quarters of the USD 10.2 trillion the world will invest in new power generating technology over the years to 2040, BNEF said.
Wind will draw USD 3.3 trillion and will see a fourfold increase in capacity by 2040. As a result, wind and solar will make up 48% of the world’s installed capacity and 34% of electricity generation by 2040, compared with just 12% and 5% now.
China and India will account for 28% and 11% of all investment in power generation by 2040, BNEF said. Asia Pacific will see almost as much investment in generation as the rest of the world combined. Of this, just under a third goes to wind and solar each, 18% to nuclear and 10% to coal and gas.