Solar PV is confirmed to be the cheapest source of electricity and it is on track to set new records for deployment every year after 2022, according to new data released by the International Energy Agency (IEA).
This year edition of the International Energy Agency’s World Energy Outlook (WEO) publication released this month provides a comprehensive view of how the global energy system could develop in the coming decade under four different scenarios, exploring in detail the impacts of the Covid-19 pandemic on the energy sector and the near-term actions that could accelerate clean energy transitions.
IEA’s analysis of solar PV shows the following findings:
- From 2020 to 2030, solar PV grows by an average of 13% per year, meeting almost one-third of electricity demand growth over the period.
- Global solar PV deployment exceeds pre-crisis levels by 2021 and sets new records each year after 2022 thanks to widely available resources, declining costs and policy support in over 130 countries.
- Solar PV is more cost effective than coal- and gas-fired power in many countries today, including in the largest markets (United States, European Union, China and India).
- For projects with low-cost financing that tap high-quality resources, solar PV is now the cheapest source of electricity in history.
- Strong growth of renewables needs to be paired with robust investment in electricity grids to ensure reliability and security of electricity supply.
Dr Fatih Birol, the IEA Executive Director said:
“I see solar becoming the new king of the world’s electricity markets. Based on today’s policy settings, it is on track to set new records for deployment every year after 2022. If governments and investors step up their clean energy efforts in line with our Sustainable Development Scenario, the growth of both solar and wind would be even more spectacular – and hugely encouraging for overcoming the world’s climate challenge.”
Source: Press release by the International Energy Agency.