Dive Brief:
- A report written for the National Bank of Abu Dhabi (NBAD) shows renewable technologies are further along than many believe and are fast approaching grid parity in most parts of the world.
- The analysis, completed by the University of Cambridge and PwC, finds solar photovoltaic power is expected to reach grid parity in 80% of countries in the next two years.
- The acceleration has been fueled by manufacturing advances and deployment, which have cut solar costs about about 80% in the last six years.
Dive Insight:
A new report produced for NBAD, a leading Middle Eastern bank, finds "solar PV systems are now at or approaching retail electricity prices in many markets, across both residential and commercial user segments."
The report, which was produced largely for the finance community in the Gulf region, notes that advances have come along with massive investment in the sector. Some $150 billion was invested globally in solar generation last year, along with another $100 billion in wind power.
"For the last few years, more than half of the total investment in new electricity generation worldwide has been in renewable energy technologies," the report notes. "Investors and developers see a global stage for projects. While the particular characteristics of demand and supply are local, the opportunity for proven technologies and finance packages is global."
Solar PV’s share of global electricity is expected to reach 16% by 2050 and 20% of all renewable electricity. The report concluded that cost reductions in both solar PV modules and systems "are set to continue in the coming years making solar PV even more competitive. The IEA estimates that solar will become the cheapest form of electricity generation worldwide between 2025-2030."
