Solar photovoltaic on the brink of an economic breakthrough
New study projects solar investments to double until 2015; 9 % of global power demand could be met with solar photovoltaic by 2030
Solar photovoltaic could account for 5% of global power demand by 2020, and up to 9% by 2030, according to a study presented today by the European Photovoltaic Industry Association (EPIA) and Greenpeace International.
The global solar photovoltaic outlook “Solar Generation 2010” (1) projects investments in solar photovoltaic (PV) to double from €35 billion today to €70 billion in 2015. At the same time, costs for PV systems are expected to almost halve (-40%). As a result, PV systems can compete with current electricity costs for households in most industrialised countries. This so-called “grid parity” will change the PV market significantly.
“Solar photovoltaic is a key technology to combat climate change and to secure access to clean electricity. Today’s figures show that the technology is on the brink of an economic breakthrough,” said Sven Teske, Senior Energy Expert at Greenpeace International. “By 2015, the global market could be twice as big as today, leading to a €70 billion investment. Our goal is to make solar photovoltaic a mainstream power source through more supportive polices around the world. India should aim to partake of this immense market, especially given the solar potentials for the country.”
Ingmar Wilhelm, President of EPIA, said: “Solar power can make a massive contribution to global electricity supply, especially in developing countries. By 2030, over 2.5 billion people could benefit from solar energy, but we need political commitment to make this happen. Solar power technology provides governments with a viable option for truly tackling the challenges of our time and for being part of the energy revolution our planet needs.”
Current solar PV global capacity could grow from 23 GW at the beginning of 2010 to 180 GW by 2015, according to the report, which was presented at the Government of India’s Delhi International Renewable Energy Conference (DIREC) with the support of Renewable Energy Network for the 21st Century. Over 1,800 GW could be installed by 2030. This would save as much as 1.4 billion tonnes in CO2 emissions every year.
In addition to its environmental benefits, solar energy is shown to be a sustainable way to address concerns about energy security and volatile fossil fuel prices, as well as a substantial factor in economic development. The PV industry, which already employs about 230,000 people worldwide, could provide jobs to 1.3 million workers by 2015. By 2050, this figure could stand at 5 million.
The importance and potential for PV in India in particular is enormous. While India has demonstrated aspiration – with the proposed scaling-up from near zero solar capacity to 20 GW by 2022, its implementation requires strong regulatory frameworks and sufficient finance. India now needs to ensure that the right investment and political signals are sent to achieve this goal. "Solar energy has massive potential to deliver quick and quality access to power to the millions in India who don’t have it, especially if installed in decentralised systems. Greenpeace is running a campaign to ensure political support for decentralised energy in Bihar, a state that is reeling under an energy shortage. This state could well build and showcase the energy infrastructure of the future instead of relying on coal which is an unviable option for the state," said Vinuta Gopal, Climate and Energy Campaign Manager, Greenpeace India.
The report is available for download at: www.greenpeace.org/international/solargeneration2010
You can also download the presentation on energy revolution at http://www.greenpeace.org/er-ship/en/Galley/Download-the-Presentation/
Notes to Editors:
- The “Solar Generation 2010” is a joint initiative by the European Photovoltaic Industry Association (EPIA) and Greenpeace. The title Solar Generation reflects the study’s aim to define the role that solar electricity will play in the lives of a population that is born today and will develop into an important energy consumption group.
- Over the whole scenario period, it is estimated that an average of 0.6 kg of CO2 would be saved per kilowatt-hour of output from a solar generator. For the period 2025-2050, a moderate annual growth rate of 5% has been assumed, as well as a very conservative lifetime of 20 years for PV modules. The scenario is also divided in two ways – into the four main global market divisions (consumer applications, grid-connected, remote industrial and off-grid rural), and into the regions of the world as defined in projections of future electricity demand made by the International Energy Agency. These regions are OECD Europe, OECD Pacific, OECD North America, Latin America, East Asia, South Asia, China, the Middle East, Africa and the Rest of the World.
- Greenpeace International and the European Photovoltaic Industry Association are urging governments to secure those investments with support programmes. The most successful scheme is a “Feed-in Tariff” which guarantees a specific price for each kilowatt-hour fed into the grid. Over 50 countries, states and provinces have already introduced the “feed-in policy”. In these countries, consumers are able to operate a solar system on their rooftops in an economically viable way.