We are heading in the direction of a low carbon future – the way the world thinks about renewable energy has undergone a remarkable change. It is no longer just an idea backed by government subsidies anymore but rather it is now mainstream electricity, competing on par with fossil fuel power generation on costs around the world.
Oil & gas is never going to disappear, but renewable energy is now mainstream. It has achieved grid parity, but as the reliance on government subsidies fades away and the ability in most countries to compete on cost with thermal, our industry is moving into an exciting second phase – one where we can expect to see between 50% to two-thirds of new gigawatt energy coming from renewables.
Over the next 10 to 20 years we will see a paradigm shift with renewables becoming the baseload. Renewable and baseload; two words that until recently would have looked unusual together.
However, advances in innovation, scalable, cost-efficient, hybrid technology and auction-based competition are all playing their part in driving this shift. As are customer demands – corporate purchasers increasingly want 100% renewable energy and in most cases we are able to deliver.