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Energy demand to increase 50% by 2030
Global energy demand is forecast to increase 50 per cent by 2030 - the year when industry exponents expect wind and solar to contribute more than 25 per cent to renewable energy, according to a report.
- Gulf News Report
- Published: 23:51 January 15, 2009
Dubai: Global energy demand is forecast to increase 50 per cent by 2030 - the year when industry exponents expect wind and solar to contribute more than 25 per cent to renewable energy, according to a report.
Credit Suisse research forecasts that the share of alternative energies in the worldwide energy supply is expected to grow significantly within forthcoming decades.
"This increase will be primarily driven by the political risk of relying on declining oil reserves and concerns about global warming, which has inspired many countries to enact renewable energy standards," it said.
As a result of increasing demand, various industries within the alternative energy sector are currently experiencing double-digit growth, most noticeably the dynamic wind and solar industries.
"While these energies today make up a small portion of the total renewable energy market (7.3 per cent) some industry exponents expect wind and solar to contribute more than 25 per cent to renewable energy by 2030," the report said.
Miroslav Durana, head Alternative Energy Research for Credit Suisse, said: "Alternative Energy is a long-term theme. Driven by rising energy costs and regulatory mandates in many countries, it is rapidly gaining share in the global energy supply.
"However, as these young industries quickly increase their capacity, component supply shortages and execution problems are likely.
"As a result, many alternative energy companies show high earnings growth but also relatively high earnings risk. Therefore, Credit Suisse recommends a diversified investment in selected stocks across all alternative energy themes or in an alternative energy index".
The news comes when Abu Dhabi is preparing for the World Future Energy Summit next week. With over 15,000 attendees expected to attend, the WFES will be the largest meeting of figures within the renewable energy industry.
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