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MTI releases Global Alternate Energy Outlook
The Research & Intelligence Unit of MTI Consulting has just released their latest Thought Leadership Report on the Global Alternate Energy Outlook
By: MTI Consulting Pvt LTD
This report presents a detailed analysis on why and to what extent alternative energy sources are in high demand all over the world. This is because the global macro economic situation has had a significant impact on global energy consumption. There was a 2.5% growth in world energy consumption in 2011. This was less than half the rate that was experienced in 2010 but it was close to the historical average. Overall, growth has reduced for all fuels and for all regions. In addition to that, the world marketed energy consumption is projected to grow by 44% over the year 2007 to 2030 period. Meanwhile, the world’s economies spent just over 1% of their economic output on oil in 1999. By 2007, spending on oil was up to 4%. A prediction on how much the world can afford to spend on oil in the next few years is also included in the analysis.
Oil accounts for 33.1% of global energy consumption and as a result, it remains the world’s leading fuel
Moving along, the report classifies energy consumption based on its source and analyses the world consumption by source of energy. To begin with, global liquid fuel consumption declined by 0.6%. Consumption in OECD countries fell for the third consecutive year while non-OECD countries experienced a slow growth in liquid fuel consumption. Oil is the most produced liquid form of energy worldwide. Per capita oil consumption figures show that since 1985, it has been very constant. Some countries increased consumption by a large amount which meant other countries had to decline oil consumption.
Natural gas is favored as being environmentally friendly and hence will continue to be in demand.
Natural gas is another source of energy that is discussed in this report. As a result of the global recession in 2008-2009, natural gas demand reduced by 4% in 2009. Gradually, global gas consumption grew at a below average rate of 2.5%. As the recession withdrew, economic growth resumed and the demand of natural gas in 2010 increased compared to the rate before recession. Natural gas is favored as being environmentally friendly and hence will continue to be in demand. Coal, being another energy source, had a slow global consumption growth rate in 2008. But coal remained the fastest-growing fuel in the world for a sixth consecutive year. World coal consumption is expected to increase by 50% from 2008-2035.
Renewables are the fastest-growing source of world energy, with consumption increasing by 3.0 percent per year. Renewable energy will be the main energy source for world electricity generation. It is said that 14% of global energy supply is accounted for by renewables. On longer term (from 2012 to 2020), alternative energy supply is expected to grow at 7.5 per cent annually. The market share of the alternative energy sources is set to increase from 8 per cent currently to over 20 per cent by 2030. Key drivers for the renewable energy sector growth are the declining oil reserves, global warming issues, energy security risk due to sensitive geopolitical stability and the increasing demand with growth of population.
Due to high demand and technological advances, the price of solar energy is decreasing and becoming more attractive.
There is a large potential for renewable resources in the world which, up to this point, have remained largely untapped. In many parts of the world, an abundance supply of renewable energy such as solar, wind, geothermal and hydro exists. By harnessing the renewable energy, countries will not only be able to provide for their own needs, but make a significant contribution to their economies by exporting electricity from clean energy sources to other regions. Renewable Energy has the potential of meeting all world energy demands if utilized properly.
Renewable energy is further broken down into wind power, biomass energy, geothermal energy and solar based power. The global market for wind power has seen a tremendous growth with the past five years experiencing a whopping 25% average growth rate. Biomass energy is used mostly for heating and cooking and it accounts for 10% of the world’s total energy needs. Furthermore, the amount it contributes to global energy is likely to quadruple by the year 2050. Moreover, the potential for geothermal energy is extremely significant. High quality resources for the production of geothermal energy are already in existence today.
Solar energy is the most abundant of all alternative energy sources. However, it currently only provides for less than 1% of the world’s commercial energy. While demand for solar energy has been at an average of about 30% since 2000-2010, solar production has been growing at an average of 40% annually. This growth is concentrated only in a few countries that have the technology to use solar energy to generate electricity. Yet, in light of rising fossil fuel prices on one hand, and advances in solar technologies on the other, the price of solar energy is decreasing and becoming more attractive.
MTI Consulting (www.mtiworldwide.com) is a fast growing international strategy consultancy, having completed over 450 projects in 40 countries since their inception in 1997