Spending on renewable power is set to overtake oil and gas drilling for the first time next year as clean energy affords a $16 trillion investment opportunity through 2030, according to Goldman Sachs Group Inc.
Renewables including biofuels will account for about a quarter of all energy spending next year, up from about 15% in 2014, Goldman analysts including Michele Della Vigna said in a June 16 note. This is in part driven by diverging costs of capital, as borrowing rates have risen to as high as 20% for hydrocarbon projects compared with as little as 3% for clean energy.
"Renewable power will become the largest area of spending in the energy industry in 2021, on our estimates, surpassing upstream oil and gas for the first time in history," Goldman said in the note.
See the whole note on Bloomberg Green here: https://www.bloomberg.com/news/articles/2020-06-17/goldman-sees-16-trillion-opening-as-renewables-pass-oil-and-gas
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