Solar energy could meet up to 13% of global power needs by 2030
The share of global electricity generated by solar photovoltaics could increase from 2% today to as much as 13% by 2030, according to a new report from the International Renewable Energy Agency (IRENA). Released at Intersolar Europe, “Letting in the Light: How Solar Photovoltaics Will Revolutionize the Electricity System” (link is external) finds the solar industry is poised for massive expansion, driven primarily by cost reductions. It estimates that solar PV capacity could reach between 1,760 and 2,500 GW by 2030, up from 227 GW today. Focusing on technology, economics, applications, infrastructure, policy and impacts, the report gives an overview of the global solar PV industry and its prospects for the future. Solar PV accounted for 20 % of all new power generation capacity in 2015. In the last five years, global installed capacity has grown from 40 GW to 227 GW. In 2015, global investment reached US$ 67 billion for rooftop solar PV, US$ 92 billion for utility-scale systems, and US& 267 million for off-grid applications. Solar PV regularly costs just 5 to 10 US-ct/kWh in Europe, China, India, South Africa and the United States. In 2015, record low prices were set in the United Arab Emirates (5.84 US-ct /kWh), Peru (4.8 US-ct /kWh) and Mexico (4.8 US-ct /kWh). In May 2016, a solar PV auction in Dubai attracted a bid of 3 US-ct /kWh. These record lows indicate a continued trend and potential for further cost reduction. Cost reduction can create dramatic expansion of solar power“Recent analysis from IRENA finds that cost reductions for solar and wind will continue into the future, with further declines of up to 59 per cent possible for solar PV in the next ten years,” said IRENA Director-General Adnan Z. Amin. “This comprehensive overview of the solar industry finds that these cost reductions, in combination with other enabling factors, can create a dramatic expansion of solar power globally. The renewable energy transition is well underway, with solar playing a central role.” He further comments that to meet the growing world electricity demand while also realising global development and sustainability goals, governments must implement policies that enable solar to achieve its full potential.Reaching a 13 per cent share of global electricity by 2030 will require average annual capacity additions to more than double for the next 14 years. The report highlights five recommendations that can help achieve this increase including: updated policies based on the latest innovations; government support of continued research and development activities; creation of a global standards framework; market structure changes; and the adoption of enabling technologies like smart grids and storage. Letting in the Light is the third solar-focused publication released by IRENA this summer. Last week, IRENA released “The Power to Change” (link is external), which predicts that average costs for electricity generated by solar and wind technologies could decrease by between 26 and 59 % by 2025. Earlier this week, IRENA released “End-of-Life Management: Solar Photovoltaic” (link is external), which found that the technical potential of materials recovered from retired solar PV panels could exceed US$ 15 billion by 2050, presenting a compelling business opportunity. Download Letting in the Light:
http://bit.ly/1ZTekaO
(link is external) Silke Funke / IRENA Copyright © 2016 BVA Media Group |