The International Energy Agency’s (IEA) World Energy Outlook report has named solar the new king of power generation, saying it is now the cheaper than coal generation and will continue to be rapidly adopted over the next 10 years.
The IEA attributes supportive policies and maturing technologies to enabling very cheap access to capital in leading markets.
“With sharp cost reductions over the past decade, solar PV is consistently cheaper than new coal or gasified power plants in most countries, and solar projects now offer some of the lowest cost electricity ever seen,” the IEA’s report says.
“Renewables meet 80 per cent of the growth in global electricity demand to 2030.
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“Hydropower remains the largest renewable source of electricity, but solar is the main driver of growth as it sets new records for deployment each year after 2022, followed by onshore and offshore wind.
“The pace of change in the electricity sector puts an additional premium on robust grids and other sources of flexibility, as well as reliable supplies of the critical minerals and metals that are vital to its secure transformation.
“Storage plays an increasingly vital role in ensuring the flexible operation of power systems, with India becoming the largest market for utility-scale battery storage.”
Read the full report from the IEA here.