Solar energy becomes global king of electricity supply!
Recent developments in the energy industry are in favor of solar energy
More and more countries take decisive action to accelerate clean energy transitions and set visions of a carbon neutral future. Many have started to realize not only the environmental aspect, but also the economic benefits of green energy. This trend is expected to tighten the bond between the capital market and the renewable industries in the coming years.
In 2020, the global energy demand was reduced by 5%. Looking at the fuel types, the estimated oil demand dropped by 8%, whereas coal demand dropped by 7%. On the other hand, the contribution of renewables increased. Total installed wind and solar PV capacity is on course to surpass natural gas in 2023 and coal in 2024. Solar PV alone accounts for 60% of all renewable capacity additions through 2025.
As the renewables are expected to grow rapidly in future scenarios of the International Energy Agency (IEA), solar energy takes the lead when it comes to electricity generation technology. Moreover, the IEA declared solar energy as the world’s lowest-cost source of electricity ever. With considerable cost reductions over the past decade, solar PV is consistently cheaper than new coal or gas fired power plants in most countries, and solar projects now offer some of the most cost-effective electricity ever seen. In addition to that, solar PV technology is expected to become even cheaper over time, whereas fossil fuel prices tend to increase because of their finite nature.
All in all: solar has a brighter, cleaner and cheaper future ahead of it. Do you want to be a part of it?
Source: International Energy Agency