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Solar PV growth to surpass wind in EU in 2021-2026

Oil&Gas Materials 1 December 2021 18:07 (UTC +04:00)
Solar PV growth to surpass wind in EU in 2021-2026

BAKU, Azerbaijan, Dec.1

By Leman Zeynalova – Trend:

Compared to the previous five-year periods, solar PV growth is expected to surpass wind in EU in 2021-2026, Trend reports with reference to the International Energy Agency (IEA).

“Increasing economic attractiveness resulting from distributed PV policies and corporate PPAs supports this trend. Growth of both hydropower and bioenergy is projected to be lower than the previous five-year period. The permitting process for hydropower projects is typically a challenge in Europe, with few available sites, and the economics of bioenergy remain challenging without further government support,” reads the IEA report.

The report says that in the accelerated case, Europe’s renewable expansion is about a quarter higher than in the main case.

“In addition to increasing 2030 ambitions, this would require countries to alleviate permitting and social acceptance challenges to enable higher participation in auctions, to expand grid capacity more quickly and to implement policies that improve the attractiveness of distributed PV,” said the agency.

In July 2021 the European Commission proposed to update the EU target from 32 percent to 40 percent to align renewable policy with raised ambitions for emissions reduction (55 percent emissions reduction by 2030 and climate neutrality by 2050). Given the deadline for finalizing the new target is May 2024, the main case assumes that the impact on capacity additions would occur after 2026 in order to allow member states to update their individual targets and policies, in line with the current governance. However, the accelerated case assumes swifter implementation of policies in each country in anticipation of new EU targets and due to increased national ambitions. Still, annual capacity additions are expected to fluctuate due to permitting and social acceptance challenges, which create lulls in the project pipeline. In some markets, this has resulted in auctions being undersubscribed or postponed.

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Follow the author on Twitter: @Lyaman_Zeyn

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