IEA anticipates record for global solar PV additions in 2021

Oil&Gas Materials 10 November 2020 11:52 (UTC +04:00)
IEA anticipates record for global solar PV additions in 2021

BAKU, Azerbaijan, Nov.10

By Leman Zeynalova – Trend:

Global solar PV capacity additions are expected to reach nearly 107 GW in 2020 in the main case, representing stable growth from 2019 (this forecast has been revised up by 18 percent from the market report update published in May), Trend reports citing the International Energy Agency (IEA).

IEA monthly deployment data indicate that construction activity for utility-scale projects slowed from March through April, but rapidly regained speed in mid-May.

“Deployment of distributed PV applications remains sluggish in large markets such as China and the United States, although activity in most European markets, Australia and Brazil has not been hampered significantly. Still, the share of distributed applications in total PV deployment is expected to decline to 37% this year, the lowest since 2017.

“In 2020, utility-scale additions will increase nearly 3 percent owing to record additions in the United States. China is expected to construct over 33 percent more PV capacity than in 2019, as developers rush to complete projects before the phaseout of subsidies. Additions in India decline for the second straight year as DISCOMs’ financial health challenges persist and Covid‑19 measures inhibit construction activity.

“Global distributed PV additions are forecast to be 8% lower in 2020 than in 2019 as the current economic uncertainty shifts the financial priorities of both individuals and small/medium-sized enterprises in some countries. Fewer distributed PV additions in key markets such as the United States, the European Union, India and Japan mark the global trend. Conversely, generous policy incentives drive a residential market boom in China and spur commercial market activity in Brazil despite the pandemic.

“In the accelerated case, global solar PV additions could be more than 120 GW in 2020, 16 percent higher than in the main case. China and the United States account for the largest portion of extra accelerated-case capacity because developers in both countries usually commission projects in the last quarter of the year, due to policy schedules. China’s historical last-quarter deployment (which ranges from 7 GW to 15 GW) does, however, introduce a major portion of 2020 PV forecast uncertainty.

“Another record for global solar PV additions is anticipated for 2021, with nearly 117 GW installed – a nearly 10 percent rise from 2020. The increase results from a strong rebound in utility-scale plants outside of China, where the phaseout of subsidies curbs PV expansion. Utility-scale project development rebounds in India and key EU markets (France and Germany) to meet auction-commissioning deadlines,” reads the IEA report.


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