Global Renewable Energy Industry
The global renewable energy industry had revenue in excess of $322 billion last year, according to MarketLine. The worldwide market for renewable energy is forecast to grow at a compound annual growth rate of close to 8.5%, bringing it to a value of almost $480 billion in 2015. This represents an almost 50% increase in five years in terms of revenue and more than a 25% rise in energy to over 4,200 billion kilowatt hours (kWh).
Renewable energy is derived from natural resources including wind, tides and sunlight. It represents the fastest-growing sector among energy sources worldwide in terms of consumption, which is rising close to 3% annually. According to the International Energy Agency, renewable energy’s share of worldwide primary energy demand will rise to 10% over the next two decades, up from 7% in 2006 thanks to falling costs and government legislative measures regarding environmental protection. Electricity from renewable energy is estimated to reach almost 25% in 2030, up from under 20% in 2006. Renewable-based electricity generation is expected to be second only to coal by 2015.
More than 7% of the world’s demand for heating should be met by solar thermal, biomass, and geothermal together combined in 2030, according to the IEA. Investment in renewable sources of energy to 2030 is estimated to hit $5.5 trillion, representing almost 50% of electricity generation investment.