By Laura Barron-Lopez - 07/01/14 02:44 PM EDT
Investments in renewable energy are expected to skyrocket by 2030, according to new projections.
The Bloomberg New Energy Finance report released Tuesday predicts that renewable energy sources may garner as much as two-thirds of the $7.7 trillion projected to be funneled into building power plants over the next 15 years.
The report forecasts that 66 percent of the money invested in new generating capacity by 2030 will go toward renewable energy technologies worldwide.
And while fossil fuels will still account for the greatest share of power generation in 2030, coming in at 44 percent, they will have dropped from 64 percent in 2013.
“This country-by-country, technology-by-technology forecast of power market investment is more bullish on renewable energy’s future share of total generation than some of the other major forecasts, largely because we have a more bullish view of continuing cost reductions," said Michael Liebreich, chairman of the advisory board for Bloomberg New Energy Finance.
"What we are seeing is global CO2 emissions on track to stop growing by the end of next decade, with the peak only pushed back because of fast-growing developing countries, which continue adding fossil fuel capacity as well as renewables," Liebreich added.
More countries will invest in solar and wind because those technologies are expected to cost less and less to install, and will not require subsidies, the report states.
"By 2030, the world's power mix will have transformed: from today's system with two-thirds fossil fuels to one with over half from zero-emission energy sources," Bloomberg analysts said in the report.
Renewable energy will take over fossil fuels in Europe, accounting for 60 percent of electric generation in 2030 where coal and gas will make up 27 percent.
The increase in renewables means solar, wind, hydropower, natural gas, nuclear and others will be responsible for the greatest share of power generation in the next 15 years.
Bloomberg's projections are based on modeling of electricity market supply and demand, technology costs, and policy changes in countries around the world.