The world will probably need more power from natural gas in the coming decades than previously thought because low electricity prices during the day could limit the rise in solar plants.
The cleanest fossil fuel’s share of the primary energy mix in 2050 will be as much as 29%, according to a report by energy and maritime risk services company DNV GL AS. A similar report a year ago had pegged the share at 25%. Solar’s contribution was cut to 12%, from 16% a year earlier.
The price of electricity during the day will fall so low, investors will probably build less solar photovoltaic capacity than previously expected, Remi Eriksen, president of DNV said by phone.
The surging need for gas underscores that the world probably won’t meet targets implied in the Paris climate deal, DNV GL said. Meeting liquefied natural gas demand after 2028 will require more than $400 billion of investment, global consultants McKinsey & Co. estimated Tuesday in a separate report.