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Renewable Energy Sources for Energy Supply • HEAT from Solar, Geothermal and Bioenergy • ELECTRICITY from Solar, Wind, Bioenergy, Geothermal, Hydropower and Ocean Energy • Bio-FUELS and HYDROGEN from Renewables The greatest scope for increasing the use of Renewables in absolute terms lies in the power sector. In the New Policies Scenario, Renewables -based generation triples between 2008 and 2035 and the share of Renewables in global electricity generation increases from 19% in 2008 to almost one-third (catching up with coal). The increase comes primarily from wind and hydropower, though hydropower remains dominant over the Outlook period. Electricity produced from solar photovoltaics increases very rapidly, though its share of global generation reaches only around 2% in 2035. The share of modern Renewables in heat production in industry and buildings increases from 10% to 16%. The use of bio-fuels grows more than four-fold over the Outlook period, meeting 8% of road transport fuel demand by the end (up from 3% now). Renewables are generally more capital intensive than fossil fuels, so the investment needed to provide the extra Renewables capacity is very large. Investment in Renewables to produce electricity is estimated at $5.7 trillion (in year-2009 dollars) over the period 2010-2035. Investment needs are greatest in China, which has now emerged as a leader in wind power and photovoltaic production, as well as a major supplier of the equipment. The Middle East and North Africa region holds enormous potential for large-scale development of solar power, but there are many markets, technical and political challenges that need to be overcome. Although Renewables are expected to become increasingly competitive as fossil fuel prices rise and renewable technologies mature, the total value of government support is set to rise as their contribution to the global energy mix increases. We estimate that governme nt support worldwide in 2009 amounted to $37 billion for electricity from Renewables and $20 billion for bio-fuels. In the New Policies Scenario, total support grows to $205 billion (in year-2009 dollars), or 0.17% 24PDF Image | Economic Perspectives of Renewable Energy Systems
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