Historically, wind has been the leading renewable energy source globally with around 240 GW of installations between 2009 and 2014. During the same period, solar has become increasingly competitive. Going forward, solar is expected to overtake wind as the renewable energy technology of choice. According to a new whitepaper from QVARTZ, solar will have the potential to attract investments worth nearly USD 300 billion in the next five years.
Towards 2020, wind and solar together are expected to impart scale to renewable electricity generation. Due to improved reliability and associated cost savings, hybrid renewable energy systems are positioned to lead this scale-up of renewables, offering new opportunities for global energy players.
The insight from the QVARTZ whitepaper suggests that Europe, the United States, China and India will be at the centre of the activity in solar. Especially China and India are expected to outshine their western counterparts with highly ambitious, renewable targets set by the government. In the light of the recent announcements in both countries, they are expected to install more than 100 GW of solar between 2015 and 2020, out of the total of 270 GW that is expected to be installed globally.
According to QVARTZ, the shift towards distributed solar in emerging economies is driven by an industrial demand for cheap power, insufficient grid connectivity and increasing cost competitiveness. This ramp-up of solar and wind capacities will represent a combined investment opportunity worth USD 220 billion. Accordingly, renewables are expected to storm the energy landscape, giving rise to significant business opportunities across wind and solar supply chains. One such opportunity is the hybrid renewable energy system, which leverages synergies between the two renewable sources to benefit the producer and consumer alike.
Like to have a chat about hybrid renewable energy systems? Contact Niclas Næstoft Jakobsen.