What conclusions were drawn?
The general consensus was that, while the COVID-19 crisis still represents a challenge that can potentially affect global supply chains, many of the attendees representing a wide variety of institutions and corporations agreed that 2021 will see the industry as a whole emerge triumphant and even experience accelerated growth in a new environment increasingly focused on sustainable growth and green energy solutions. Wood Mackenzie, IHS Markit and BloombergNEF all highlighted a positive outlook for the future of the PV industry.
What’s happening in Solar?
The solar industry is a vibrant and dynamic sector in continuous evolution. Adapting to market trends quickly and seamlessly will be paramount to the success of all stakeholders involved. Here are the main trends affecting the PV industry by region.
BloombergNEFhighlighted how "renewables are now the cheapest source of new bulk electricityin countries representing more than two-thirds of the world population and 90% of electricity generation”. This means that the growth of the sector is inevitable, as cheaper prices and lower entry costs further enable economies of scale and continue the cycle of ever-expanding scale and reduced costs.
Storage is becoming more integrated into the PV industry. The energy storage sector is expected to boom in the next few years with public and private investments, as well as incentives and improved battery technology driving growth and bringing costs down. As utility-scale storage projects become mainstream, grid operators and local regulators will need to address how the new system can be integrated into the electricity matrix. The United States and China are currently leading the transition.
Wood Mackenziehighlighted how the region will experience continued growth despite phasing out of subsidies. PV utility will be the cheapest source of energy by 2030, reaching parity against gas in 2019 and against coal in 2027. Even residential PV is expected to outperform fossil fuels in the long term.
EU countries target roughly 200 GW of new PV through 2030 IHS Markit 2021
IHS Markit predicts that1500V and higher PV inverters are forecast to account for 70% of global three-phase shipments in 2024. The increased savings and efficiency that come with a 1500V solution will become mainstream as the industry adapts to the latest trends.
Solar and renewables central to China’s 14thfive year plan.As the largest PV market in the world and as the largest manufacturer of solar products and infrastructure, China will inevitably play an important role in the next decade, as the country prepares to transform its energy mix and meet its ambitious renewable energy goal of carbon neutrality by 2060. China could potentially double its rate of solar power installations and continue its rise towards becoming a true RE powerhouse.
Installations grew 8% in Latin America. Solar expected to reach 35% share in Brazil’s energy mix by 2050. Most countries have achieved their renewable energy targets. The regions is largely seen as one with high solar potential for the 2020s decade.
What can we expect in this decade?
We live in one of the most exciting times in the solar industry. Analysts from across the globe have highlighted reduced battery costs and increased size and scale of PV projects and investments as a key driver of the exponential growth expected in this decade.
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