Renewables fastest growing share of energy mix-EIA

WASHINGTON Wed May 27, 2009 7:00pm IST

WASHINGTON May 27 (Reuters) - Renewable energy will be the world's fastest growing source of electricity generation over the next two decades, although it will still make up a relatively small portion of the global energy supply, the U.S. government's top energy forecasting agency said Wednesday.

Global renewable electricity generation is set to rise by an average of 2.9 percent per year from 2006 to 2030, increasing from 19 percent of supply in 2006 to 21 percent by 2030, the Energy Information Administration said in its annual international energy outlook.

The EIA said the growth in renewable energy production will be supported by "the expected high prices for fossil fuels and by government incentives for the development of alternative energy sources."

The majority of that increase will come from the use of wind power and hydropower. Aside from those two sources, other renewable energy technologies such as solar power will not be "economically competitive with fossil fuels over the projection period, outside a limited number of niche markets," the agency reported.

In developing countries including China, India, and Vietnam, renewable energy output will increase predominantly through hydropower with mid- to large scale hydroelectric plants expected to be completed. Wind and biomass will lead the increase in renewable power in developed nations, however.

Despite the boost in renewable power, EIA said coal and natural gas still supply nearly two-thirds of world's electricity in 2030.

The EIA's projections are based on current laws and policies and do not reflect any possible new U.S. legislation or global agreements that could have a substantial impact on energy production.

Last week a key House panel approved a bill, that if it became law, would cap U.S. greenhouse gas emissions. Such legislation could greatly affect coal power plants, which are big carbon dioxide emitters.

The bill would also mandate power plants generate a certain amount of electricity from renewable sources. The U.S. Senate is also considering similar renewable power legislation. (Reporting by Ayesha Rascoe)

Monetary Policy Committee

Reuters Showcase

Microfinance

Microfinance

Funding the unfunded: India helps small business borrow to grow  Full Article 

Insurance Sector

Insurance Sector

UK healthcare firm Bupa sees strong growth in India  Full Article 

Sensex Rises

Sensex Rises

Sensex edges up; consumer and healthcare stocks rise  Full Article 

Market Eye

Market Eye

FTSE adds nine Indian firms as large-caps in Asia-Pacific ex-Japan index   Full Article 

Indian Ocean Diplomacy

Indian Ocean Diplomacy

PM Modi to ramp up help for Indian Ocean nations to counter China influence  Full Article 

ECB Bond-Buying

ECB Bond-Buying

ECB raises growth forecasts, to start printing money next week  Full Article 

China Economy

China Economy

China signals "new normal" with lower annual growth target  Full Article 

Pharma Sector

Pharma Sector

Panel recommends waiving late-stage trials for some drugs  Full Article 

E-commerce

E-commerce

China backs e-commerce expansion in win for Alibaba, JD.com  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage