Bloomberg reported the amount of electricity generated using solar panels is forecasted to expand as much as 6 times by the year 2030 as the cost of production goes down below competing natural gas and coal-fired plants, according to the report of the International Renewable Energy Agency.
Solar plants using PV technology could account for 8%-13% of global electricity produced in 2030, compared to 1.2% at the end of last year, according the Abu Dhabi-based industry group. The average cost of photovoltaic electricity system is estimated to plunge as much as 59% by 2025, thus making solar the cheapest form of power generation.
Renewable energy is replacing nuclear energy and inhibiting electricity production from gas and coal in many developed areas such as the US and Europe according to the Bloomberg New Energy Finance. PG&E Corp. California is proposing to close down 2 nuclear reactors as solar and wind costs go down.
Even as the supply saturates coal and gas prices, wind and solar technologies will be the most affordable way of producing electricity in most parts of the world by the year 2030 as stated by New Energy Finance. Irena Director General Adnan Amin said that the renewable energy transition is underway, with solar power playing an important role. The cost reductions and in combination with other enabling factors, can create a net expansion of solar power worldwide.
The Bloomberg New Energy Finance also forecasts growth in solar PVs will reach 15% of the total electricity output by 2040 as stated by the head of solar analysis in Zurich, Jenny Chase. According to Irena, the most promising markets for solar panels until 2020 are Brazil, Chile, Israel, Mexico, Jordan, The Philippines, Saudi Arabia, South Africa and Turkey.
The worldwide capacity can reach 1,760 to 2,500 gigawatts in 2030 as compared to 227 gigawatts at the end of 2015. Power networks or smart grids that are capable of handling and distribution of electricity from different sources, plus the new types of storage technologies will boost further use of solar power.
The record for the world’s cheapest solar tariff was made in Dubai last month and happened in an auction. MEED reported that the consortium that includes Masdar Abu Dhabi Future Energy Co. and Abdul Latif Jameel of Saudi Arabia bid 2.99 cents/kilowatt-hour, which is 15% cheaper than the last record.