The drop in prices of coal and gas will not derail the transformation and decarbonisation of the world’s power systems, revealed the New Energy Outlook 2016, published by Bloomberg New Energy Finance.

According to the report, renewable energy sources should provide 60% of power consumed in the world, by 2040. Solar and wind will represent 64% of these sources, with an installed capacity of 8,600 GW and 60% of associated investment or $11.4 trillion. This growth will be mainly spurred by lower energy cost, with a 60% decrease for solar.

This source will indeed constitute 43% of the capacities which will be developed over the next 25 years, with a preference for small scale solar power plants. This trend will start in Europe, Australia, and USA before extending to other parts of the world.

In Africa and Middle East, development of renewable energy will be multiplied 8 fold, increasing their share in the energy mix from 16% now to 55%, by 2040.

Meanwhile, non-members of the Organisation for Economic Co-operation and Development (OECD) will keep developing coal plants due to the absence of effective coal policies.

Greenhouse gases produced by the power industry should reach their peak in 2027, before falling as China’s economy slows down. However, in 2040, these emissions should exceed forecast by 5%, as progress made by the European Union, the United States and China will be mitigated by emissions from India and South Eastern Asia.

Gwladys Johnson