RENEWABLE ENERGY: THE 2050 REMIX The heatmap reinforces the need for both in-depth modelling, are considered in the forecasts of the agencies 11 analysis and targeted investor engagement to fully (eg, IRENA in its World Energy Transition Outlook 2022 understand the risks and opportunities for the di昀昀erent devotes a whole chapter to the problem of critical 12 renewable energy sources. These factors, even if materials and the IEA also discussed this point in its sometimes highlighted less often and with more abstract Net Zero Emissions by 2050 scenario). Exhibit 4: Renewable energy capacity expected growth 60% 56.4% 50% 40% 41.4% 30% 27.2% 25.4% 28.5% 20% 10% 9.8% 5.3% 3.0% 1.8% 0% 0.5% 0.5% 0.2% Solar PV Wind Hydropower Bioenergy & Geothermal Others (from solar energy (using the kinetic (several technical biofuels (system of (including marine and photovoltaic energy of the wind options using the (could be solid, collection energy and panels) with wind turbines force of the water) liquid or gas of the internal concentrating (whether onshore or – including biomass, calori昀椀c solar power*) o昀昀shore) biofuels and energy to the earth) biomethane) 2021 – % of global RE capacity 2050 forecast – % of global RE capacity * Concentrating solar power = solar thermodynamic power. Source: Allianz Global Investors, IEA, IRENA. Exhibit 5: The future potential for each energy source and their risks measured by key indicators Potential and maturity of renewables Dependence sensitivity Risk factors Potential Geopolitical Mining & Potential New Finance/ Public for scale-up Stage of Weather Climate stress & Intermittency rare earths for use in infrastructure interest rate/ opposition of output maturity (short term) change supply chain & piloting* (availability the circular & storage in昀氀ation and/or capacity (long term) disruption and economy needs context political controversies) pressure Solar PV Wind Hydropower Bioenergy & biofuels Geothermal Others Lowest dependency or lowest risk Highest dependency or highest risk * Piloting: controlling the generation of electricity according to demand. Source: Allianz Global Investors, IEA, IRENA. 4