The assessment was part of the IEA’s World Energy Outlook 2011 presentation examining the energy sector by region up until 2035.
However, the IEA does not believe US onshore wind will become competitive before 2035. Additionally, it said all other renewables would need to be subsidised beyond 2035.
According to the report, renewable energy is also set to take a larger slice of the money available through energy subsidies.
Renewable energy subsidies for 2010 were $66 billion, a $9 billion rise on 2009. The IEA predicted this would rise to almost $250 billion by 2035.
This will still be less than fossil-fuels receive at the moment ($409 billion) and half what could be available in 2020 ($660 billion).
The IEA said that despite a decline in unit production costs and rising wholesale electricity prices, renewable energy subsidies will need to rise in order to hit existing targets.
Overall, the IEA painted a bleak environmental picture as a result of energy generation and predicted the world reach the point of irreversible climate change within five years.
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