The annual report recently released by the International Energy Agency shows that the global solar photovoltaic installed capacity is expected to reach 375 gigawatts in 2023, with a year-on-year increase of 31.8% in total installed capacity. From the perspective of various countries and regions, the new installed capacity of solar photovoltaics in China in 2023 is equivalent to the global new installed capacity of solar photovoltaics in the previous year. Dimitrios, the head of the energy department at the World Bank, believes that developing the solar photovoltaic industry is crucial for addressing climate change and promoting energy transformation.
The advantages of the photovoltaic industry are becoming more prominent.
At the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) held last year, the development of solar energy was one of the key discussions among all parties. The agreement reached in COP28 for the first time mentions the cost reduction and technological innovation of solar, wind, and energy storage technologies, affirming that their development will help achieve the goal of addressing climate change, and calling on countries to transition towards the goal of moving away from fossil fuels in their energy systems in a fair, orderly, and equitable manner.
In recent years, the global photovoltaic industry has accelerated its development. According to relevant statistics, from 2019 to 2023, the average annual growth rate of global photovoltaic installed capacity reached 28%. According to consulting firm Wood McKenzie, solar energy has become the most cost-effective energy source in most countries. In 2023, the global installed capacity of photovoltaic power generation has exceeded that of hydropower. In the next 10 years, the photovoltaic industry will continue to maintain a high growth rate.
The CEO of the Global Solar Council stated that solar energy is currently the fastest growing and most cost-effective renewable energy source, and that solar photovoltaic technology is the most important energy transformation technology to double the total installed capacity of renewable energy worldwide by 2030. A recent report released by the University of Exeter in the UK suggests that solar energy will become the most competitive energy source in the coming years. According to predictions, by 2044, photovoltaic power generation will account for more than half of the global electricity generation.
According to reports from institutions such as the International Energy Agency, there are still 675 million people worldwide who do not have access to electricity, of which about 80% are concentrated in sub Saharan Africa. Former Vice Chairman of the United Nations Intergovernmental Panel on Climate Change, Munasinger, stated that sustainable development is an important challenge facing human society. The continuous innovation and advantages of solar photovoltaic technology provide a choice for developing countries to seek sustainable economic development, energy transformation, and environmental protection.
Countries actively promote the application of technology
In recent years, many countries around the world have introduced various policy measures to accelerate the pace of energy transformation and actively develop the solar photovoltaic industry.
Middle Eastern countries have abundant solar energy resources. The United Arab Emirates proposes to achieve carbon neutrality by 2050. In November 2023, the Al Dafra PV2 photovoltaic power plant project in the United Arab Emirates was connected to the grid for power generation. The power station can meet the electricity needs of 200000 households and reduce carbon emissions by 2.4 million tons annually, increasing the proportion of clean energy in the UAE’s energy structure to over 13%. Saudi Arabia has proposed in its “2030 Vision” to achieve a photovoltaic installed capacity of 40 gigawatts by 2030, and will invest 380 billion riyals (1 riyal equivalent to 1.91 RMB) in renewable energy projects. Qatar has proposed that the proportion of solar power generation will reach 20% by 2030. In November 2022, Qatar’s first photovoltaic power station, the Al Qasa Power Station, was officially put into operation, which can meet 10% of Qatar’s peak electricity demand. David Ramos, head of HSBC’s Middle East Sustainable Development Department, stated that Middle Eastern countries have broad prospects for developing renewable energy represented by solar energy.
The 2023 Outlook Report released by the African Solar Industry Association last year showed that the photovoltaic industry in Africa is accelerating its development. South Africa, Morocco, Egypt and other countries are in a leading position in photovoltaic construction projects. For example, Egypt proposed in its Comprehensive Sustainable Energy Strategy for 2035 that the installed capacity of renewable energy generation will reach 61 gigawatts by 2035, of which the installed capacity of photovoltaic power generation will reach 43 gigawatts. At the same time, more countries in Cape Verde, Botswana, Eritrea and other regions are increasing their investment in photovoltaic industry and starting to build and operate large-scale photovoltaic projects.
In recent years, the EU’s photovoltaic industry has also achieved rapid growth. According to a report released by the European Photovoltaic Industry Association, the EU’s newly installed photovoltaic capacity is expected to reach 56 gigawatts in 2023, maintaining an annual growth rate of over 40% for the third consecutive year; It is expected that the total installed capacity of photovoltaic power generation is expected to double before 2026, reaching the expected 484 gigawatts.
The report from the University of Exeter suggests that the rapid development of the global photovoltaic industry is mainly due to two factors. On the one hand, relevant countries have successively introduced policy measures to support the photovoltaic industry, and on the other hand, the prices of photovoltaic modules have significantly decreased. From 2010 to 2022, the average weighted cost of global solar power generation decreased by 89% to $0.049/kWh, almost one-third lower than the cheapest fossil fuels.
A recent special article published on the World Bank website stated that by 2030, photovoltaic microgrids can provide uninterrupted electricity to 380 million people. However, the current global investment in power grid infrastructure is still seriously insufficient. Relevant countries need to formulate appropriate policy measures, promote inclusive finance, and encourage private investment. The international community needs to increase efforts to support developing countries in building energy infrastructure and promoting energy structure transformation.
China Helps Global Green Development
The Francisco Pizarro solar power plant, located in the Estremadura Autonomous Region of Spain, was put into operation in 2022 and is one of the largest operational photovoltaic power plants in Europe. All the solar panels used in the power plant are from China; In Garissa County, Kenya, the Garissa photovoltaic power station constructed by Chinese companies has effectively solved the local electricity shortage problem and continues to provide clean electricity to the local people.
In recent years, Bank of China has participated in the Eldavra PV2 photovoltaic power plant project in the United Arab Emirates and the 300 megawatt photovoltaic project in Sarkaka, Saudi Arabia, and successfully issued 500 million dollars of green bonds with the theme of “the Belt and Road” last year. Pan Xinyuan, President of Bank of China Dubai Branch, stated that as the world’s largest producer of photovoltaic modules, China has a leading advantage in photovoltaic project construction. Chinese banks, as a bridge connecting production capacity and demand, can play a positive role in promoting global energy transformation.
The Director of the International Energy Agency stated that China has made remarkable achievements in the development of clean energy and electric vehicle industries such as solar and wind energy, and is “the champion in the field of clean energy.”. The Minister of Industry and Advanced Technology of the United Arab Emirates and Chairman of COP28 stated that China’s continued leadership in clean energy technology is an important factor in helping to achieve global energy transformation, address climate change, and promote development.
In an interview with reporters, the Vice President of the Economic and Technological Research Institute of the Global Energy Internet Development Cooperation Organization said that China has promoted the development of renewable energy to the height of ensuring national energy security and strengthening the construction of ecological civilization, so as to achieve leapfrog development in a short time. It is precisely because China has vigorously developed renewable energy that the global cost of solar power generation has decreased by nearly 90% in recent years, and the cost of wind power has decreased by 80%.
The Deputy Minister of Electricity and Renewable Energy of Egypt said that the Chinese plan is of great significance for global energy transformation and climate governance, providing feasible solutions for African and Arab countries to promote energy transformation, promote economic development, and improve the ecological environment. The Vice President of the “the Belt and Road” International Alliance for Green Development and the former Deputy Secretary General of the United Nations said that China has made great contributions to the development of global renewable energy, and has also brought innovative driving forces to the economic development and green low-carbon transformation of developing countries.
Post time: Feb-22-2024