The global solar industry has made remarkable strides, doubling its capacity in just two years to reach 2 terawatts (TW) by 2024, following the milestone of 1 TW in 2022. Solar energy has emerged as the cheapest power source in many regions, solidifying its role as a key pillar in the global energy system.
Solar Capacity and Its Impact
With 2 TW of capacity, global solar energy is now equivalent to the total power installed across India, the USA, and the UK, enough to power approximately one billion homes. This capacity also represents twice the installed electricity capacity of the EU27 and is nearly double China’s current coal power capacity. The environmental impact is significant, as this solar capacity avoids carbon emissions comparable to taking over 600 million gasoline vehicles off the road or recycling more than 110 billion bags of trash.
COP29: Addressing Financial Barriers
The upcoming COP29 climate summit in Baku, Azerbaijan, will focus on the financial obstacles hindering solar deployment, with an ambitious goal to triple global renewable energy capacity by 2030. The Global Solar Council highlights the necessity for more accessible financing, especially in emerging markets where solar financing costs tend to be high. The council aims to reduce interest rates from 15% to around 5% for projects in developing economies.
Introduction of the International Solar Finance Group
At COP29, the Global Solar Council will launch the International Solar Finance Group, an initiative designed to foster collaboration between the solar industry and financial sectors. This group aims to develop financial solutions that make solar investments more attractive worldwide. The council urges national governments and investors to establish ambitious renewable energy targets and address barriers, including infrastructure and financing, to propel the global energy transition.
Solar PV Growth
In 2023, solar photovoltaic (PV) technology led renewable energy additions for the 19th consecutive year, accounting for 78% of the 576 GW of new renewable capacity, with 447 GW connected to grids globally. Furthermore, 93% of the global population lives in areas where daily solar potential ranges from 3-5 kWh/kWp, highlighting the broad accessibility of solar energy.
Conclusion
As solar energy continues to grow, it plays a crucial role in the transition to a sustainable energy future. With concerted efforts to improve financing and infrastructure, the potential for solar energy to power the world sustainably is immense.
