As the world confronts the urgent challenges posed by climate change, solar energy has emerged as a very important solution. Recently, a series of reports from the International Solar Alliance (ISA) marks unprecedented growth in solar energy infrastructure. The reports detail advancements in technology, investment trends, and the global shift towards renewable energy, particularly in the context of the Paris Agreement commitments.
Global Solar Growth
The latest findings reveal that global solar capacity has soared from a mere 1.22 gigawatts (GW) in 2000 to an astonishing 1,418.97 GW by 2023. This represents a staggering annual growth rate of approximately 40%. In 2023 alone, the sector added 345.83 GW, accounting for three-quarters of all new renewable energy capacity. Interestingly, solar energy generation has also seen a dramatic increase, from 1.03 terawatt-hours (TWh) in 2000 to 1,628.27 TWh in 2023. By the end of 2024, global solar manufacturing capacity is expected to exceed 1,100 GW, indicating a robust future for the industry.
Investment Trends
Investment in solar energy is outpacing that of fossil fuels, with projections indicating a rise from $2.4 trillion in 2018 to $3.1 trillion in 2024. Notably, solar investments constituted 59% of all renewable energy investments in 2023, totalling approximately $393 billion. The Asia-Pacific region is leading this surge, contributing $223 billion, followed by Europe, the Middle East, and Africa at $91 billion, and the Americas at $78 billion.
Technological Advancements
The development of solar technology is rapidly evolving. Monocrystalline solar photovoltaic (PV) modules have achieved a record efficiency of 24.9%, while multi-junction perovskite cells promise even greater efficiency and lower production costs. Furthermore, the manufacturing process has dramatically improved, with silicon usage per watt peak (Wp) decreasing by 88% since 2004. The levelised cost of energy (LCOE) for utility-scale solar PV has plummeted by 90% since 2010, making solar energy more affordable than ever.
Employment Opportunities
The clean energy sector has created 16.2 million jobs globally, with solar energy leading the way, employing 7.1 million individuals. This marks a substantial increase of 44% from the previous year’s figures. As solar energy continues to expand, it is expected to play important role in job creation and economic development.
Future Projections
Looking ahead, global solar capacity is projected to reach between 5,457 GW and 7,203 GW by 2030, driven by international climate commitments. This anticipated growth puts stress on the need for substantial infrastructure investments to meet these ambitious targets.
Questions for UPSC:
- Discuss the impact of solar energy on global climate change mitigation efforts.
- Analyse the investment trends in renewable energy, particularly solar energy, in the context of global economic shifts.
- Evaluate the technological advancements in solar energy and their implications for energy efficiency.
- Explain the employment potential of the solar energy sector and its significance for economic development.
- Assess the role of international agreements, such as the Paris Agreement, in shaping the future of solar energy.
