newables expert , says the sector needed less and less in government subsidies as costs come down . Over the last five years , the price of solar energy dropped by 80 %, while wind power ’ s costs dropped by a third overall .
Varro says that offshore wind power – traditionally seen as expensive – was becoming more price-competitive as turbine sizes increase and more efficient construction methods are used . Low interest rates were also encouraging more investment in renewables . Nuclear energy is seen by some as an important ingredient in tackling climatechanging carbon emissions .
“ Fossil fuels continue to dominate energy supply , but the composition of investment flows points to a reordering of the system ”
The IEA says the drop in the price of renewables has not been reflected in the nuclear sector – rather , the reverse . And there are continuing worries about nuclear safety and the disposal of nuclear materials .
For those hoping for a bright new dawn of carbon-free energy , the IEA report has some sobering news : there are continuing largescale investments in coal – the most polluting of fuels . More than US $ 60 billion was invested in coal projects last year , most of it in Asia and in Australia .
Many of the coal plants constructed are described as sub-critical – severely polluting , and using only basic technology . The continued investment in coal was often due to the lack of the necessary infrastructure to support other , cleaner energy systems in countries such as India and Indonesia , and to the failure of governments to back renewables .
Energy spending China continues to be the world ’ s biggest producer and consumer of coal , although the IEA says 60 % of the country ’ s total energy spending last year was on renewables .
The IEA predicts that investment in fossil fuels is likely to continue to fall in the years ahead , particularly in the oil industry . But the energy sector − especially transport − will remain dependent on oil and gas .
The liquefied natural gas ( LNG ) market will grow substantially , and countries in the Middle East and Russia will continue to expand their oil production .
The IEA welcomes the shift in investment to renewable forms of energy , but says new oil production needs to come on stream in order to meet international energy demand .
Production from oil fields around the world is declining , and Birol says : “ Every second year we lose [ the equivalent of ] one Iraq due to the decline in oil field production . This is worrying from an IEA perspective .” – Climate News Network
Acknowledgement : http :// climatenewsnetwork . net / fossil-fuels-investmentnosedive /? utm _ source = Climate + News + Network & utm _ campaign = 7fec240f04- Fossil _ fuels _ nosedive9 _ 17 _ 2016 & utm _ medium = email & ut m _ term = 0 _ 1198ea8936-7fec240f04-38801077 https :// commons . wikimedia . org / wiki / File : Nellis _ AFB _ Solar _ panels . jpg #/ media / File : Nellis _ AFB _ Solar _ panels . jpg
Jürgen from Sandesneben , Germany https :// commons . wikimedia . org / wiki / File : Alternative _ Energies . jpg