The global average cost of generating electricity from offshore wind energy is on track to fall 40% by 2030, making the energy source competitive with fossil fuels, according to a report by the International Energy Agency (IEA). Investment in offshore energy, which currently only accounts for 0.3% of global power supply, could reach around USD 840bn over the next two decades, the IEA forecasts.
The energy watchdog sai d the energy source could be a “game changer” over the coming decades, alongside cheaper energy from solar panels and shale gas. Technically, the IEA said, offshore wind had the potential to generate 36,000 terawatt hours of energy per year, 50% more than the world’s total power consumption today, the Financial Timesreported.
The report underlines our view that renewable energy presents an opportunity for investors. We see several main drivers: