With clean energy sources set to produce more power than gas and nuclear by 2016, the International Energy Agency (IEA) has revealed that emerging economies will eventually account for two-thirds of the renewables market, as their need for sustainable energy is greater than western nations.
IEA executive director Maria van der Hoeven said, “As their costs continue to fall, renewable power sources are increasingly standing on their own merits versus new fossil fuel generation.
According to the IEA, although renewable energy investment grew in 2012, it is facing uncertainties due to unclear policies in countries that are members of the Organisation for Economic Co-operation and Development (OECD) – the group set up in the 60s to stimulate economic progress.
“Many renewables no longer require high economic incentives”, van der Hoeven added.
“But they do still need long-term policies that provide a predictable and reliable market and regulatory framework compatible with societal goals.”
On the contrary, emerging economies in Latin America and Asia are increasing their investment in clean energy, to deal with greater energy demand from a growing population and because they are looking for pollutant-free sources to overcome the effects of climate change and atmospheric pollution.
According to the IEA, emerging economies will account for two-thirds of the global boost in renewable power generation by 2018, while green energy is set to exceed power generated by gas and nuclear by 2016.
This would happen because power sources like wind, hydro and solar are becoming increasingly competitive in several countries, with their costs going down.
In April, a Climate Institute report revealed that Asian countries are doing better than Europe and the US in their efforts to decarbonise their economies. Many countries are promoting renewable energy investment and sustainability policies – at the forefront of which is China.