RMI Foresees Cleantech To Drive 10% Of Global GDP Growth 

RMI Foresees Cleantech To Drive 10% Of Global GDP Growth 

The Rocky Mountain Institute (RMI), a US-based research organization, has recently published a report forecasting significant growth in the cleantech sector. According to the report, solar energy installations are expected to reach 1,000 GW annually, accompanied by sales of 6,000 GWh of batteries per year. These advancements are crucial in achieving the sector’s goal of tripling renewable capacity in which cleantech is now reportedly added 10% of global GDP growth

In 2023, solar and wind energy contributed 500 out of 600 TWh of demand growth and are poised to sustain above-average growth rates. The report attributes this to a 20% reduction in cleantech costs for every doubling of renewable deployment, driven by electrification and efficiency initiatives.

Solar and wind provided 500 out of 600 TWh of demand growth in 2023

The RMI report anticipates that to meet cleantech industry targets, electrification rates are projected to double annually to 0.5%, while efficiency gains are anticipated to exceed 3% per year. Over the past decade, cleantech costs have plummeted by up to 80%, reinforcing ongoing trends.

Comparatively, the report notes that the first trillion-dollar annual investment spanned decades, while the second trillion is anticipated within just four years. Solar generation is doubling every 2-3 years, and battery storage capacities are expanding annually, positioning solar to dominate generation capacity and batteries to surpass pumped hydro.

The report highlights that the supply chain is already capable of supporting net-zero ambitions with sufficient solar and battery capacities. Electricity, which has been the primary source of useful energy for a century, continues to expand globally, particularly in OECD countries and across the global south, notably in Asia. In this, solar and wind generation is expected to triple to over 12,000 TWh, while electric vehicles are projected to constitute two-thirds of car sales.

The RMI report predicts that annual electrification rates will more than double to 0.5% by 2030, catalyzed by advancements in transport and China’s leadership in electrification. Meanwhile, annual efficiency gains are anticipated to increase to at least 3%, driven by the rising share of renewables and a stronger focus on end-use efficiency.

Renewable energy is seen as displacing fossil electricity and driving efficiency gains to minimize waste. The report underscores that over 75% of current fossil fuel demand faces competition from rapidly expanding cleantech alternatives, positioning efficiency, and cleantech as pivotal in reshaping the energy landscape.

Moreover, emerging economies have also witnessed an increase in renewable energy deployment, in emerging countries such as Brazil and Morocco in the wind industry, whereas, Vietnam and India in the solar industry.

Emerging economies like Brazil, Vietnam, India, and Morocco emerged As New Emerging Markets For Clean Tech