GLOBAL – The installation of renewable energy on homes, commercial buildings and industrial facilities is set to take off over the next five years, transforming the way electricity is generated and consumed, according to the International Energy Agency’s latest renewable energy market forecast.
The projected increase will be largely driven by Solar PV which according to the IEA’s report projected to account for 60% of the rise.
Solar Photovoltaic (PV) is a technology that converts sunlight (solar radiation) into direct current electricity by using semiconductors and its application is the focus of the IEA’s Renewables 2019 market report, which in late October this year.
The report forecasts that the world’s total renewable-based power capacity will grow by 50% between 2019 and 2024.
The share of renewables in global power generation is set to rise from 26% today to 30% in 2024.
This increase of 1,200 gigawatts – equivalent to the current total power capacity of the United States – is driven by cost reductions and concerted government policy efforts.
The expected growth comes after renewable capacity additions stalled last year for the first time in almost two decades.
Distributed PV accounts for almost half of the growth in the overall solar PV market through 2024 with commercial and industrial applications rather than residential uses dominate distributed PV growth, accounting for three-quarters of new installations over the next five years.
Still, the number of solar rooftop systems on homes is set to more than double to some 100 million by 2024, with the top markets on a per capita basis that year forecast to be Australia, Belgium, California, the Netherlands and Austria.
“As costs continue to fall, we have a growing incentive to ramp up the deployment of solar PV,” Fatih Birol, the IEA’s Executive Director.
The IEA forecasts that these costs will decline by a further 15% to 35% by 2024, making the technology more attractive and spurring adoption worldwide.
The renewed expansion, however, remains well below what is needed to meet global sustainable energy targets.
“Renewables are already the world’s second largest source of electricity, but their deployment still needs to accelerate if we are to achieve long-term climate, air quality and energy access goals,” said Dr Birol.
The report highlights three main challenges that need to be overcome to speed up the deployment of renewables: policy and regulatory uncertainty, high investment risks and system integration of wind and solar PV.
The report warns, however, that important policy and tariff reforms are needed to ensure distributed PV’s growth is sustainable.
By reforming retail tariffs and adapting policies, utilities and governments can attract investment in distributed PV while also securing enough revenues to pay for fixed network assets and ensuring that the cost burden is allocated fairly among all consumers.