Wind and solar energies are already the cheapest source of power generation in most places, and by 2025 it will be cheaper to build a new wind/solar farm than run an existing coal/gas-fired power plant.

The forecast was made on Monday by BloombergNEF (BNEF), after an analysis found that renewables already account for just under 75% of the world gross domestic product (GDP), Kallanish Energy understands.

The role of renewables in power generation and as an alternative to fossil fuels in other sectors such as shipping is set to be transformational. However, despite the large spread, renewables will be capped to a 70-80% share in the energy mix, BNEF said.

The penetration levels of renewables in energy systems will vary geographically. However, even in Europe, home to some of the toughest policies favoring clean energy, wind and solar are unlikely to surpass 80% of supply.

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