According to Fatih Birol, CEO of the International Energy Agency (IEA), solar photovoltaic energy was for the first time the source of new energy that grew faster in 2016. This milestone was celebrated as “excellent news” and marked a before and after in the development of renewable energies.
At the presentation of the annual report Renewables 2017Birol noted that when looking at all fuel sources (oil, gas, coal and renewables), renewables have shown strong and sustained growth, with particular mention being made of the rapid rise of solar PV. This type of energy is not only transforming 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 the clear leader in expansion, accounting for almost half of global growth. This is not an isolated event, but is the result of two key pillars: strong government support to clean energy policies and the technological improvements which have made it possible to optimise both the efficiency and installation costs of solar 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 renewables accounted for nearly two-thirds of net new power capacity installed worldwide in 2016, reaching a staggering 165 gigawatts. And that growth is projected to continue: by 2022, a XNUMX-gigawatt-plus capacity increase is expected. 43% increase in electric power capacity world.
The cheapening of solar energy: a key to its expansion
One of the factors that are driving solar photovoltaic energy is the drastic cost reduction that has been experienced. In fact, in 2016, solar energy became cheaper by more than 75%, which has made it the cheapest option compared to traditional energy sources such as oil, gas or coal.
Solar is currently cheaper than any other form 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
It is common to associate the cost of energy production with the price of kilowatt hour (kWh), but this is not the only relevant indicator for understanding the future of renewable energy. The decisions that drive large energy projects are often influenced by the long-term profitability and the initial installation cost.
The global energy market is characterized by projects with long-term structure, where investments are planned for decades. This means that the adoption of renewable energies will take place at a slower pace than expected, since traditional projects, such as coal or nuclear plants, will not be dismantled until the end of their useful life. Pressure from traditional energy lobbies also plays a key role in prolonging these deadlines.
Therefore, in order for the energy transition moving forward, we must not only look at the cost of producing electricity, but also the cost of starting up the 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 carbon dioxide emissions have risen alarmingly, solar energy has come to offer a fully renewable solution 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 overcome these obstaclesAn example of this is LPP ("long persistence phosphorus") material, which 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.
In addition, researchers around the world are working on innovative materials that will enable the integration of solar cells into surfaces such as windows, tiles and even clothesThese 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.