A new report has shown that renewable energy sector will provide 85 per cent of global electricity demands and 44 per cent of total energy needs by 2050.

A Dutch quality assurance and risk management company DVL GL published the report by Energy Transition Outlook 2017, which only took into account solar photovoltaic (PV), onshore and offshore wind and hydropower plants.

Citing the report, Climate Action noted that final energy demand is expected to be 430 exajoules, (Unit of energy) in 2050, compared to 400 exajoules in 2015 with a minor increase to occur before 2030, when demand will start flattening.

“The slowing down of the demand growth is expected due to decelerating population and productivity growth, energy efficiency measures, and due to increased electrification especially in the heating and transport sectors.

“Thus, electricity consumption is projected to increase by 140 per cent becoming the largest energy carrier,” Climate Action cited.

Remi Eriksen, CEO of DNV GL. commented: “The profound change set out in our report has significant implications for both established and new energy companies.

“Ultimately, it will be a willingness to innovate and a capability to move at speed that will determine who is able to remain competitive in this dramatically altered energy landscape”.

Noting that gas is on an upward trajectory toward becoming the biggest energy source by 2034, the report identifies coal consumption having already peaked.

Solar PV and wind power will lead the sector growth benefiting from the ‘learning curve’ effect; hydro will keep being a key energy source, Climate Action reported.

Highlighting that the costs for solar PV and wind energy are expected to reduce by 18 per cent and 16 per cent respectively.

Despite CO2 reductions expected to halve, global temperatures are set to increase by 2.5 degrees Celsius- not meeting the Paris Agreement goal of global warming to be well below 2 degrees.

Eriksen commented: “This should be a wake-up call to governments and decision-makers within the energy industry, the industry has taken bold steps before, but now needs to take even bigger strides”.