Solar Energy will become the Largest Source of Electricity Worldwide

The rise of renewables is crystal clear in all scenarios. The estimates speak for themselves. By 2050, global electricity demand increases drastically, growing by 80% in the Stated Policies Scenario, by 120% in the Announced Pledges Scenario and by 150% in the Net Zero Emissions Scenario. In each of them, low-emissions sources of electricity, led by renewables, will overtake fossil fuels by 2030, thus ending decades of growth for coal.

World Outlook 

In every scenario, by 2050, Solar PV will become the largest source of electricity worldwide, supplying at least 25% of the worlds’ electric energy and potentially up to 37%.  Only between 2022 and 2027, renewables growth will account for 90% of global electricity expansion. And, specifically, solar PV will account for more than 60% of renewable electricity expansion over the forecasted period, setting records for annual additions every year. Cumulative solar PV installed capacity will surpass the one of hydropower by 2024, natural gas by 2026 and coal by 2027. Growing by 1500 GW and reaching 2350 GW by 2027 in the main case, solar PV capacity will become the largest installed electricity capacity in the world.

Europe Outlook

In the EU, only between 2022 and 2027, European cumulative renewable electricity capacity is going to increase by 54% between 2022 and 2027, which is more than 425 GW. Solar PV will lead the growth, accounting for more than half of the renewable electricity expansion. Only in 2022, solar PV and Wind produced 22% of European electricity, generating for the first time more than gas (20%) and remaining above coal (16%). As European renewable auctions rose by 60% YoY, feed-in tariff and net-metering agreements remain a strong incentive for energy transition and corporate power purchase agreements (PPAs) and revenue from the spot market make solar projects outside of government-led auctions more common and are driving growth in many European markets. Furthermore, between 2022 and 2050, solar PV is going to account for the highest share of renewable electricity additions, paving the path of tremendous growth.