Renewable energy is poised to grow faster than other electric generating alternatives, accounting for nearly one-third of the world's electric generating capacity by the end of 2035, with China and India projected to consume one-half of that energy growth. The burgeoning prices of crude oil and populist concerns over climate change are also seen to boost the shift to use cheaper and cleaner fuels.

The U.S. Energy Information Administration (EIA), in its newly released International Energy Outlook 2011 (IEO2011), reported renewable energy capacity, such as hydroelectric, will expand 2.7 percent annually through 2035. Of all the identified renewable energy sources, EIA projects solar power to post the biggest growth rate at 8.3 percent per year, followed by wind at 5.7 percent, geothermal at 3.7 percent, hydropower at 2.0 percent and other renewables such as wood waste, landfill gas and agricultural byproducts at 1.4 percent cumulative.

Coal remains the world's major generation source of countries in 2035, primarily fuelled by demand from China and India. Combined energy demand from the two countries is seen to consume 31% of the world's energy growth in 2035, up 21% from 2008.

By 2035, China's projected energy consumption is 68% higher than U.S. energy consumption. Global energy consumption grows 53% between 2008 and 2035, indicating a 1.6% average annual growth rate.

Earlier, according to BP's Statistical Review of World Energy 2011, China had been ranked as the world's largest consumer of energy surpassing the U.S. and E.U. The report showed that in 2010, China used up 20.3% of the world's energy, overtaking the US at 19.0% and the EU at 14.4%.

Actual production from renewables will expand at a 3.1 percent rate, highest of all sources, the EIA said, with hydroelectric power and wind power accounting for more than 82 percent.

EIA reported that petroleum-burning power plants will fall by 1 percent per year. Global installed generating capacity for other conventional generation resources will remain to increase at modest rates, with nuclear leading giving the largest increase at 2 percent, followed by natural gas at 1.6 percent and coal at 1.3 percent.