Page 6 - AfrElec Week 50 2022

AfrElec COMMENTARY AfrElec

Solar demand to grow globally

by 20-30% by mid-decade

GLOBAL Solar will probably be the fastest growing energy Additionally, the report sees emerging signs
source in 2023-2025 worldwide, with demand of diversification in global PV supply chains,
likely to increase 20-30%, says Bloomberg Intel- with new policies in the US and India expected
ligence in a new report, Global Solar Energy to boost investment in solar manufacturing by
2023 Outlook. as much as $25bn over the 2022-2027 period.
According to Bloomberg Intelligence, growth While China remains the dominant player, its
in solar demand will exceed 20% in 2023-25. share in global PV manufacturing capacity could
Industry-wide income for the companies that decrease from 90% today to as much as 75% by
Bloomberg Intelligence tracks is set to total more 2027.
than $220bn as soon as 2023. Energy security concerns caused by Russia’s
For 2022, Bloomberg Intelligence found that invasion of Ukraine have motivated countries to
solar demand grew about 40%, with industry increasingly turn to renewables such as solar and
revenues increasing about 50% compared with wind to reduce their reliance on imported fossil
a year earlier. fuels, whose prices have spiked dramatically, says
Solar shares have exceeded the broader mar- IEA.
ket so far in 2022, says the research firm, though Global renewable power capacity is now pre-
Bloomberg Intelligence also found that most dicted to grow by 2,400 GW over the 2022-2027
solar shares remain well below their record highs period, an amount equal to the entire power
achieved in the first quarter of 2021. capacity of China today, says the report.
According to a recent report by the Interna- Meanwhile, the US added 4.6 GW of new
tional Energy Authority (IEA), utility-scale solar solar capacity in Q3 2022, a 17% decrease from
photovoltaics (PV) and onshore wind are the the same quarter last year as trade barriers and
cheapest options for new electricity generation ongoing supply chain constraints continue to
in a significant majority of countries worldwide. slow America’s clean energy progress, according
In fact, global solar PV capacity is set to to the US Solar Market Insight Q4 2022 report
almost triple over the 2022-2027 period, sur- just released by the Solar Energy Industries
passing coal and becoming the largest source Association (SEIA) – a trade group – and Wood
of power capacity in the world, says the report, Mackenzie.
Renewables 2022. These disruptions will cause a 23% decline in
The report also forecasts an acceleration of solar installations this year compared to 2021,
installations of solar panels on residential and predicted the report.
commercial rooftops. According to the report, detainments under

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