Oil and gas firms remain cautious on renewable investment despite growing clean energy ambitions.
Renewables are expected to supply more than 40% of global electricity generation by 2030, according to new analysis from GlobalData, as oil and gas companies continue balancing clean energy ambitions with financial and regulatory pressures.
GlobalData’s latest Strategic Intelligence report, “Renewable Energy in Oil and Gas”, forecasts renewable power generation will rise from 7.4PWh in 2020 to 16.1PWh by 2030, representing a 10-year compound annual growth rate of 8.1%.
Over the same period, fossil fuels’ share of global power generation is expected to fall from 62% to 50%.
The report said global power generation has increased by around 30% over the past decade, while renewable energy capacity has nearly doubled.
Ravindra Puranik, Oil and Gas Analyst at GlobalData, said: “Rise in renewables development are influenced by factors, including global decarbonization efforts and rising concerns about energy security amid intensifying geopolitics.
“The cost of equipment and installation for solar and wind power projects has also declined due to improvements in underlying technologies as well as economies of scale, leading to lower levelized costs of renewable energy for the end-consumers.”
Major oil and gas firms including TotalEnergies, BP and Shell continue investing in renewable projects, although the pace of spending has slowed in some regions.
GlobalData highlighted that BP recently withdrew from its Beacon Wind project offshore New York, while Equinor adjusted renewable targets due to rising costs.
Supportive regulations in Europe and Asia continue driving renewable investment, while higher costs, regulatory uncertainty and permitting challenges in the US are delaying or cancelling projects.
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