According to Fatih Birol, CEO of the International Energy Agency (IEA), solar photovoltaic energy was, for the first time, the fastest- growing source of new energy in 2016. This milestone was hailed as "excellent news" and marked a turning point in the development of renewable energy.
In presenting the 2017 Renewables annual report , Birol highlighted that, after analyzing all fuel sources (oil, gas, coal, and renewables), renewables have demonstrated solid and sustained growth, with particular mention of the rapid rise of solar photovoltaics. This type of energy is not only transforming the industry but is also bringing about a structural change in energy markets.
Solar energy: unstoppable growth
The 2016 analysis revealed that new solar photovoltaic (PV) capacity grew by 50%, with China leading the way in expansion, accounting for almost half of the global growth. This is not an isolated event, but rather the result of two key factors: strong government support for clean energy policies and technological advancements that have optimized both the efficiency and installation costs of solar power plants.
This growth rate was such that for the first time solar PV outpaced the capacity increase of other traditional energy sources such as coal, gas and oil. This represents a paradigm shift and augurs a very promising future for the energy transition worldwide.
The report also estimated that renewable energy accounted for almost two-thirds of the net new energy capacity installed worldwide in 2016, reaching an impressive 165 gigawatts. And projections indicate that this growth will continue: by 2022, a 43% increase in global electricity capacity is expected.
The cheapening of solar energy: a key to its expansion
One of the factors driving the growth of solar photovoltaic energy is the dramatic reduction in its costs. In fact, in 2016, solar energy became more than 75% cheaper , making it the most affordable option compared to traditional energy sources such as oil, gas, or coal.
Currently, solar energy is cheaper than any other type of energy in more than 50 countries, which is facilitating its adoption and promoting its expansion. However, for solar energy to become a true pillar of the global energy system, it still needs to continue improving its short-term profitability.
The battle for the future of the energy market
We often associate the cost of energy production with the price per kilowatt-hour (kWh), but this is not the only relevant indicator for understanding the future of renewable energy. Decisions driving large energy projects are usually influenced by long-term profitability and initial installation costs.
The global energy market is characterized by long-term projects , where investments are planned for decades. This means that the adoption of renewable energy is proceeding at a slower pace than expected, since traditional projects, such as coal or nuclear power plants, will not be decommissioned until the end of their useful life. Pressure from traditional energy lobbies also plays a key role in extending these timelines.
Therefore, for the energy transition to move forward, we must look not only at the cost of electricity production, but also at the cost of setting up facilities from scratch.
Competition with other energy sources: Solar vs. wind and fossil fuels
Unsubsidized solar power is already displacing coal and natural gas. In addition, new solar projects in emerging markets are proving cheaper than wind power projects.
In emerging markets, where there has been an alarming increase in carbon dioxide emissions, solar energy has emerged as a fully renewable solution to the problem of economic and energy growth.
Technological innovations: the future of solar energy
Traditionally, solar energy has had a major drawback: the variability in the amount of solar radiation received, which depends on the weather. On cloudy or rainy days, energy production is considerably reduced, which generates instability in supply.
However, advances in materials are helping to overcome these obstacles . One example is LPP (“long-persistence phosphor”), a material that can store solar energy during the day and release it at night.
New technologies for low sunlight conditions
LPP is able to absorb light across a broader spectrum, including near-infrared, allowing energy to be harvested in situations where visible light is low. This is especially beneficial in regions with harsh or cloudy climates.
Furthermore, researchers worldwide are working on innovative materials that will allow solar cells to be integrated into surfaces such as windows, roof tiles, and even clothing . These advances will not only improve efficiency but also reduce installation and maintenance costs, making solar energy an even more viable option.
The future of solar photovoltaics is bright. With the continued advancement in energy storage technologies and the falling prices of solar panels, this energy source is emerging as a key solution for reducing emissions and keeping the planet sustainable.