According to Morgan Stanley, according to the data and according to the logic. It’s simple: renewable energy is on its way to being the cheapest energy in the world, as the company explains in one of its market reports. And there seems to be no way to stop it.
That has a clear consequence: technology is going to solve a problem that politics has been unable to solve. “According to our forecasts, in most cases it will be renewable rather than government policy that will drive changes in carbon dioxide emissions levels.”
Globally, the price of solar panels has fallen more than 50% between 2016 and 2017. And in countries with good weather conditions, the costs associated with wind energy are already “one third lower than those of natural gas”. Among other things, this is because of the increased efficiency of photovoltaic cells and because the evolution of wind turbines allow longer blades and generable energy has a direct relationship with the area covered by these blades.
“We are projecting that by 2020, renewable energy will be the cheapest form of energy generation in the world,” the report says. Perhaps the only exception is in some countries in Southeast Asia and that will significantly change the global scenario of carbon emissions.
“For example, despite President Trump’s declared intention to withdraw the United States from the Paris climate agreement, we expect the US to exceed the Paris commitment targets with a reduction of 26-28% Carbon by 2020. Renewables and not government policy “is what is going to make the Paris Accord come true.
This is the view of Morgan Stanley and the truth is that it is very likely to happen. All the data point to the same trend: we will live incredible times as far as energy is concerned.