Annual solar installations are expected to reach 130 GW by 2021
The solar market is growing strongly and with further technology improvements and cost reductions for solar components, industry analysts are expecting significant market growth in the years to come.
Bloomberg New Energy Finance (BNEF) expects global power demand to grow by 57% from 2018 to 2050 representing investments of about USD 11.5 trillion in new power generation. Of this, more than 70%, or USD 250 billion per year is forecasted to be invested in wind and solar.
According to BNEF it was installed 107 GW of solar globally in 2018. This represents total investments of USD 131 billion.
In the short term, the solar market volume is expected to grow by 20% to 130 GW by 2021. The highest growth is forecasted to come from new markets in Latin America, the Middle East and Southeast Asia. The investments required to realize a typical utility-scale solar plant is expected reach 80 cents per Watt in 2019, a decline of 45 % from 2015.
As the cost of solar power continues to decline, policy makers around the world are increasingly looking to solar to cover their power needs and create growth. In emerging economies, governments look at private/public partnerships as an attractive model where multilateral development banks and private players provide funding to realise new solar projects at a fast pace. Several development banks have long-standing presence and experience in emerging markets and are mandated to provide non-recourse project financing. These markets continue to represent interesting opportunities for Scatec Solar and forms a strong fundament for growth in the years to come.