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RBI Forecasts End of Fossil Fuel Dominance: Renewables to Surpass 50% in Global Power Generation by 2030

30 Sep 2024

The Reserve Bank of India has said in its latest report that the dominance of fossil fuels in power generation in India will end by the end of the decade. The report also said that the share of renewable energy in power generation globally is expected to surpass 50 percent. It said that the energy transition has accelerated in recent years, with the pace of deployment of clean technology and capital investment reaching record levels.

"The era of fossil fuel dominance is coming to an end, with the share of renewable energy in global electricity generation expected to surpass 50 percent by the end of this decade," said the RBI.

They added that increasing clean energy generation provides a valuable window to address "hard-to-reach" sectors such as steelmaking and aviation, where low-carbon alternatives are still in their early stages. He also highlighted the importance of increasing investment in low-carbon energy.

“Clean power generation can boost the aggressive emissions cuts that are urgently needed, allowing more time to tackle ‘hard-to-abate’ sectors such as steelmaking and aviation, where cost-competitive low-carbon solutions have not yet arrived,” it further said.

The report highlights that for every dollar invested in fossil fuels, an average of three dollars needs to be allocated to renewable energy in the coming years, significantly higher than the current ratio, where both sectors receive equal investment. Tripling renewable energy capacity by 2030 is considered essential to meet net-zero emissions targets by mid-century.

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