Solar power costs have dropped by 90%, and China is changing the global energy landscape!
On November 26, the South Korean media "Daily News" published an article stating that the explosive growth of global solar power generation mainly owes to the sharp drop in the price of solar panels. Over the past decade, China's large-scale production has reduced the cost of solar panels by nearly 90%, completely changing the renewable energy landscape.
China's large-scale production has caused a sharp drop in component prices, reducing the overall facility investment cost by about 70%. This has made solar power the most economical energy source for oil-rich countries such as Saudi Arabia, as well as India and African countries.
The International Energy Agency (IEA) had predicted that the global solar power capacity would reach 410 gigawatts by 2035, and this number has already quadrupled. Notably, this year, the electricity generated from renewable sources including wind and solar has exceeded coal-fired power plants, proving that the energy transition has become a reality. In countries like South Africa, which have long suffered from power shortages, decentralized energy models are showing strong development trends, with households and businesses installing small solar panels on their rooftops to generate their own electricity.
China now accounts for half of the global solar power capacity, leading the green transformation. Renewable energy has met 84% of China's new power demand in 2023. India, the world's third-largest carbon emitter, has set a goal to develop 500 gigawatts of solar power by 2030, and has already achieved 243 gigawatts earlier this year. Countries such as Saudi Arabia and South Africa have also launched large-scale solar development to reduce domestic oil consumption and address power shortages.
At the same time, since President Donald Trump took office, the United States has significantly reduced its support for renewable energy. Large projects have been delayed or canceled, and the reduction of tax credits under the Inflation Reduction Act has further increased investment uncertainty. The IEA has halved its prediction for the growth of renewable energy in the United States by 2030. Experts believe that the U.S. policy regression will eventually lead to the transfer of the future global energy system leadership to China.
Although solar power development is rapid, the renewable energy revolution is not yet complete. The Financial Times pointed out that to successfully achieve the energy transition, three challenges must be addressed.
First, ensuring storage capacity is crucial. The electricity generated by solar and wind power is highly variable due to weather conditions, and without large-scale storage batteries, it is difficult to completely replace coal or gas power plants. Fortunately, China's large-scale production has reduced the cost of battery systems, making it possible to provide stable electricity at a lower cost, comparable to that of fossil fuel power plants.
Second, the electrification of industries must be accelerated. Although power generation itself has been successful, the conversion of fossil fuels to electricity is slow in areas such as home heating, transportation, and industrial production. In Europe and the United States, the electrification rate has remained stagnant, while only some Asian countries such as China have benefited from the popularity of electric vehicles and factory conversions, with the rate increasing.
Third, it is crucial to address policy and infrastructure issues. In India, the protection of the coal industry, the difficulty in finding land for solar projects, and the slow progress of grid access have all hindered solar development.
Although the cost of renewable energy power generation has decreased, due to issues such as the cost of transmission and distribution infrastructure, this has not led to a decrease in consumer electricity prices, so the benefits felt by the public are not significant.
In conclusion, solar power generation has already become cost-competitive, but improvements in power storage technology and the acceleration of the electrification process in other industries will be key to the success of the energy transition.
Original: www.toutiao.com/article/1849816086568960/
Statement: This article represents the views of the author.