Solar power is booming as the post-war energy crisis in Ukraine drives the shift to renewables, which is expected to overtake coal by 2027, according to International Energy Agency forecasts .
Renewable energy Overall, it will be the world’s largest source of power generation by early 2025, and the world will add twice as much renewable energy capacity from 2022 to 2027 as it has in the last five years, the IEA said.
Not only are countries pushing to “expand new renewables” to meet climate goals, but energy security and the need to “diversify” renewable energy supply chains from China are becoming increasingly important. has become IEA Executive Director Fatih Birol said in an interview:
Whether it’s solar power, wind power, batteries or electric vehicles, “when it comes to the next chapter of the industrial sector, the race for pole position is fierce among the world’s largest economies,” he said. said.
The move to replace oil and gas that no longer comes from Russia and build a domestic renewable energy sector has led to a push for industry incentives and subsidies.
The US is pushing a landmark climate package, the $369 billion Inflation Reduction Act. This includes solar incentives through $10 billion allocated for tax credits across clean energy and $27 billion set aside in the “green bank” to support clean energy. project in the community.
In its latest annual report on renewable energy, the IEA estimates that between 2022 and 2027, global renewable power capacity will increase by 2,400 gigawatts, matching China’s current power capacity. increase. That’s 30% higher than the IEA predicted for him a year ago.
According to the IEA, the US and India are expected to lead the diversification of the solar manufacturing supply chain, reducing China’s dominance. Solar investment by both countries is expected to reach about $25 billion between 2022 and 2027, a sevenfold increase over the last five years.
However, China remains the “dominant player”, with an estimated market share of around 75% by 2027, up from 90% today, according to the IEA.
IEA warned In June, it said China’s control over the solar panel supply chain could slow the global shift to cleaner energy. The policies included in China’s latest five-year plan will see China account for nearly half of the newly added renewable energy by 2027, the agency said this week.
The solar boom is expected to accelerate in the next two years alone. Iberdrola, Europe’s leading renewable energy company, plans to “more than double global solar capacity to 10.6 gigawatts by the end of 2025,” says sustainable energy business. said Xabier Viteri Solaun, director of
Solar projects can be developed and built more quickly than other renewable resources, he added, adding that the company is also “seeing an increase in solar capacity added to new and existing wind farms.” ”.
The IEA believes that growth could be further accelerated if European countries make it easier to obtain new project permits, improve incentives for rooftop solar installations and offer better terms at renewable energy auctions. points out that there is a
Despite the positive overall trend, the European wind industry is suffering from “huge challenges”, Birol said. Competition between China and the US combined with rising raw material and supply costs is creating financial stress.
Birol also reiterated warnings about replacing fossil fuels from Russia with new oil and gas projects. Supply should come from existing oil fields, but steps need to be taken to curb demand, he said.
“Russian aggression in Ukraine should not justify large-scale investments in fossil fuels,” he said. Because these not only “endanger climate targets”, they can also be stranded assets.