Solar power and electric vehicles will wreak havoc on the energy sector, say analysts from Carbon Tracker and Grantham Institute, in contrast to rosy industry forecasts
Fossil fuel giants are vastly underestimating the disruptive power of solar panels and electric cars, which could see coal and oil demand peak by 2020.
That is the conclusion of a report by the Carbon Tracker Initiative and Grantham Institute published on Thursday.
Energy companies pursuing business as usual are in for a rude awakening, by this analysis, with many mines and oil fields likely to become surplus to requirements.
Based on dramatic cost reductions in recent years, the model foresees these two technologies taking a 10% chunk of market share from carbon majors in a decade. That may not sound like much, but was enough to devastate the US coal sector.
“If people are just waiting on policy to happen, they could get bitten by clean technology coming up behind them,” said James Leaton, an author of the report.
Read more at Coal and Oil Demand ‘Could Peak in 2020’