Page 5 - AfrElec Week 49 2022

AfrElec COMMENTARY AfrElec

Nevertheless, the positive report is welcome line growth, we believe profitability metrics are
news for a renewables industry that is having poised to improve based on an easing of input
to face the decidedly lukewarm impact of the costs and supply chain constraints,” said Rob
COP27 conference in November in Egypt. Barnett, Bloomberg Intelligence Senior Analyst
The conference in Sharm el-Sheikh failed (Clean Energy).
to move forward the Glasgow targets agreed at Global solar demand rose about 40% in 2022
COP26, and there is widespread concern in the with industry revenues increasing about 50%,
green movement that the UN’s climate efforts Bloomberg said, while 2023 solar sales may top
lost momentum at the conference. $220bn.
As well as a concrete commitment to Loss Bloomberg said it saw growth in solar
and Damage at COP27, the one positive takea- demand surpassing 20% in 2023-25 with indus-
way from the conference was an acknowledge- trywide revenue for the companies in BI’s global
ment that green energy was important not just solar theme basket on track to exceed $220bn in
for climate security, but now for energy security 2023.
and wider economic and political security too. This growth is begin driven by favourable
The IEA’s report supports this trend, and is economics. Chief among this is new solar’s level-
to be welcomed by the climate lobby. The clear ised cost of electricity (LCOE), which Boomberg
warning from Birol that more needs to be done put at $40 per MWh, roughly in line with a new
should serve as a wake-up call for governments wind and over 50% cheaper than new coal.
and corporate interests. Meanwhile, battery rollout may hit its
stride in 2023, following successful 2021-22,
Solar growth with Canadian Solar, SolarEdge and Enphase
Following on from the IEA report, Bloomberg expected to have delivered a cumulative 10 GWh
Intelligence’s Global Solar Energy 2023 Out- hours of batteries in total.
look came out recently, with similar predictions In Europe, the EU’s REPowerEU programme
that solar energy is likely to be the fastest grow- aims to double the installed capacity of solar
ing segment of the energy sector in 2023, with power to more than 320 GW by 2025, which
demand set to soar 20-30%. may lift consensus sales estimates for 2023-25,
“The growth of solar follows a record 2022, Bloomber predicted.
during which global solar capacity additions By 2030, the EU is aiming for 600 GW of
expanded about 47%. Best-in-class peers such installed solar capacity, an indication that sales
as Enphase or First Solar could see their sales momentum could be maintained through the
growth exceed 30% in 2023, and amid such fast end of this decade. ™

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