Global solar capacity will almost treble over the next decade, reaching over 271GW of cumulative installed capacity by 2025, according to new research from analysts GlobalData.
The company's latest report predicts annual growth rates for the solar industry will fall from the 50.1 per cent compound annual growth rate (CAGR) seen over the past decade. However, it predicts the CAGR for the industry through to 2025 will still reach 13.1 per cent as China cements its position as the world's largest solar market.
"China is a world leader in renewable energy investment, having proved itself a leader in wind power installation, wind turbine manufacturing, and solar PV manufacturing," said Pavan Vyakaranam, power project manager at GlobalData. "Solar PV capacity in the country will continue to grow during the forecast period, from 60.5GW in 2016 to 236.7GW in 2025, at a CAGR of 18.5 per cent. Solar PV will play a significant role in China's future energy supply, as the government looks to this resource to meet growing energy demand. The central government, spurred on by growing environmental concerns, has planned many initiatives for rapid development of the domestic PV market."
However, he added that other regions would enjoy similarly rapid growth as solar costs fall and more governments adopt supportive policy frameworks. "Policies such as net metering, feed-in tariffs and renewable portfolio standards have had a key impact. Indeed, the US and Canada have implemented all three of these policies, and will register notable CAGRs of 14.6 per cent and 10.6 per cent, respectively in cumulative installed capacity during 2016-2025," he said. "Finally, the formation of solar alliances will also drive growth globally. Those such as the International Solar Alliance formed at COP21 between India and France may improve the investment scenario in the solar energy sector, helping it to grow further in the near future."
The report came as it emerged plans for the world's lowest cost solar project has taken a major step forward.
News agency Bloomberg reported yesterday that Abu Dhabi state-backed clean tech investor Masdar is leading a consortium that has won the rights to develop a giant new 800MW solar project in Dubai that is expected to deliver power at a cost of just 2.99 cents per kilowatt-hour, undercutting the cost of coal power in the emirate. (businessGreen)