Global Renewable Energy Expansion
In October 2019, a report from the International Energy Agency forecast that renewable energy use would expand by at least 50% over the following five years, buoyed by a resurgence in solar energy driven by more cost-effective technology.
At the time of the IEA
report, the solar sector was rolling new projects out at a faster rate than
at any point in the previous four years. The same was also true for both the hydropower
and wind power sectors. The IEA is now predicting an increase in the world’s solar
capacity of 600GW by 2024, which is nearly double Japan’s installed total
electricity capacity.
Marcel Kooter is a strong advocate for energy transition from fossil fuels to renewables and works with companies in the energy industry to help them define strategies that will decarbonise their operations cost-effectively. Increased output and reduced costs for solar, wind and hydropower will likely play a key role in future strategies.
Introducing theUK’s Green Recovery Challenge Fund
Declining Costs of
Renewable Power
The cost of solar power has already declined to the point
where it can compete with even the cheapest sources of coal in terms of
cost-efficiency, and the same can be said for wind power. With renewables
increasingly beating fossil fuels on production costs, the global energy
transition could be accelerated faster than previous forecasts have predicted.
The cost of replacing fossil fuel-powered energy resources
with renewables has always been a major stumbling block in terms of switching
to more sustainable sources of energy. Now that renewables are able to compete
with existing fossil fuel plants on cost, there is more incentive than ever
before to make the transition.
By 2024, the IEA predicts the cost of solar power will decrease even further and by a significant amount – somewhere between 15% and 35%.
Commercial and
Domestic Adoption
Falling costs for solar panels will result in increased
adoption for both commercial and domestic applications. While businesses with
high energy demands will be rushing to install the cheapest option, homeowners
are also more likely to see solar panels as a good investment.
The IEA expects the total number of solar panels installed
in homes around the world to at least double by 2024, with Australia, Belgium
and California having the highest rates of adoption. Factories and other
businesses with high requirements for energy are already jumping on the solar
bandwagon, cutting energy bills by exploiting the lowered costs of energy
production.
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Recovering from
the Pandemic
The COVID-19 pandemic that has overwhelmed society around
the globe for most of 2020 has resulted in economic slowdown in large parts of
the world. The Director General of IRENA has stated that the global recovery
strategy should be one that focuses on renewables.
Implementing new and better infrastructure for renewable
energy and decreasing reliance on fossil fuels is not only better for the
environment – it also has the potential to drive the restart of economies
everywhere. The falling cost of renewable energy, when combined with the right
policies and strategies, has the potential to align short-term action with
long-term goals and contribute towards a green recovery from the pandemic.