According to the 2020 power transition trend report released by bnef of new energy finance and economics, it is found that solar energy has made great progress in the past decade, and its installed capacity has increased from 43.7 GW in 2010 to 651 MW by the end of 2019, which also exceeds the installed capacity of wind power (644 GW).
So far, solar energy has become the fourth largest power generation source in the world after coal (2089gw), natural gas (1812gw) and hydropower (1160gw).
Luiza DEM? RO, bnef analyst and lead author of the study, said: “the sharp drop in the cost of solar equipment, including roof and outdoor modules, has made the technology widely available in homes, businesses and power grids. Now, solar photovoltaic technology is really ubiquitous and a global phenomenon. ”
As far as power generation is concerned, the contribution of solar energy is much smaller because of its lower power generation than fossil fuels. Bnef found that solar energy accounted for 2.7% of global power generation in 2019, but higher than 0.16% a decade ago. Given the cost advantage of the technology and the limited penetration rate based on one generation, bnef expects the market to continue to grow and build 140-178gw of new solar energy by 2022.
In terms of other sources of power generation, electricity generated by coal production has decreased by 3% in 2018-2019 due to lower operating frequency of power plants. This marks the first decline in coal production since 2014-2015, and although there are far more coal-fired power plants online in the world today than they were a decade ago, they operate less frequently. The average utilization rate of coal-fired power plants decreased from 57% in 2010 to 50% in 2019. However, 9200 terawatt hours (TWH) produced from coal in 2019 is 17% higher than in 2010.
Over the past decade, global coal-fired power capacity has surged by 32% to 2.1tw by 2019. Since 2010, more than 113gw of net coal phasing out in developed countries has not been able to offset 691gw of net new coal in emerging markets. In 2019, the world’s net new coal installed capacity is 39gw, which is significantly higher than the 19gw coal installed capacity in 2018.
“Rich countries are moving quickly to seal up older, inefficient coal-fired power plants because they cannot compete with new natural gas or renewable energy projects,” said Ethan zindler, bnef’s head of America. However, in less developed countries, especially in South and Southeast Asia, new and more efficient coal-fired power plants usually continue to go online with international financial support. ”
Overall, in 2019, solar and wind installed capacity accounted for more than two-thirds of the world’s 265 GW increase in 2019, much higher than less than a quarter in 2010. For the first time, these two technologies also accounted for the majority of the new installed capacity. If hydropower is included, renewable energy will account for three-quarters of the capacity put into production in 2019.