Solar anticipated to add 190GW of capacity this year prior to new energy policies considered-- IEA

May 16, 2022 03:58 PM ET
  • The globe included record amounts of renewable energy last year with 295GW of capacity deployed, up 6% year-on-year, regardless of supply chain restraints, project delays and high commodity costs, according to the International Energy Agency (IEA), which additionally anticipates virtually 320GW to be deployed this year.
Solar anticipated to add 190GW of capacity this year prior to new energy policies considered-- IEA
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While it is still "prematurely" to examine the effect of updated energy policies complying with Russia's intrusion of Ukraine on 2022 as well as 2023 forecasts, the existing international energy crisis aggravated by the battle has actually added greater motivation to the tidy energy change, according to the IEA's Renewable Energy Market Update 2022.

The report noted how solar PV as well as wind power have "the capacity to reduce the European Union's power industry dependancy on Russian natural gas by 2023". This is regardless of their expenses expected to staying high with to 2023 "because of raised commodity and freight rates", the IEA said, adding that their competitiveness enhanced when watched versus skyrocketing gas as well as coal costs.

Pushing through the 300GW level for the very first time, capacity additions this year are expected to be led by solar PV, which is predicted to account for 60% (190GW) of new capacity, up 25% year on year. BloombergNEF is expecting a substantially higher number of approximately 245GW of solar PV, its head of solar analysis, Jenny Chase, lately informed PV Tech.

Utility-scale projects will certainly compose 2 thirds of capacity enhancements this year, the IEA said. It approximated that the total financial investment expenses of new utility-scale PV would certainly be 15% to 25% higher than in 2020 because of raised prices for freight, polysilicon and also steels.

It stated that while 2022 capacity enhancements were forecasted to jump 8% to practically 320GW this year under its old forecasts that did not represent new energy policies, 2023 additions are anticipated to "continue to be stable" unless new policies are executed rapidly because "solar PV expansion can not fully compensate for reduced hydropower and constant year-on-year wind additions."

The IEA said "solid policy assistance" in the China, the European Union (EU) and also Latin America had actually created its implementation forecasts for 2022 and also 2023 to be updated in December despite descending forecast revisions in the US, where the solar market is presently reeling from the Department of Commerce's (DOC) choice to explore anti-dumping as well as circumvention by Chinese producers.

Although referencing "looming market uncertainties", the IEA stated the increased focus on energy safety and security in the EU was "triggering an unprecedented policy momentum in the direction of increasing energy performance and also renewables".

"Inevitably, the forecast of renewable markets for 2023 as well as past will depend on whether brand-new and also stronger policies will be introduced as well as applied in the next six months," it included.

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