Solar power has become the biggest competitor of coal in the Asia-Pacific region, according to a new report by Wood Mackenzie, a leading energy research and consultancy firm. The report, titled “The Future of Solar Power in Asia Pacific”, predicts that solar power will account for 23% of the region’s power generation by 2030, surpassing coal’s share of 22%.
The report attributes the rise of solar power to its declining costs, increasing efficiency, and favorable policies. The report says that solar power has become the cheapest source of electricity in most of the Asia-Pacific countries, with an average levelized cost of energy (LCOE) of $38 per megawatt-hour (MWh), compared to coal’s average LCOE of $55 per MWh.
The report also says that solar power has improved its performance and reliability, thanks to technological innovations and digitalization. The report cites the example of bifacial modules, which can generate power from both sides of the panel, and floating solar, which can be installed on water bodies and reduce land use.
The report also highlights the role of government policies and incentives in supporting the growth of solar power. The report mentions the examples of China, India, Japan, and Australia, which have set ambitious targets and implemented various schemes to promote solar power. The report also notes the impact of the Paris Agreement, which has motivated many countries to reduce their greenhouse gas emissions and switch to renewable energy.
The report, however, warns that solar power still faces some challenges and risks, such as grid integration, storage, financing, and regulation. The report says that solar power is intermittent and variable, and requires adequate grid infrastructure and storage solutions to ensure stability and reliability. The report also says that solar power needs more investment and funding, especially in emerging markets, where access to capital and credit is limited. The report also says that solar power needs clear and consistent regulatory frameworks and policies, which can reduce uncertainty and risk for investors and developers.
The report concludes that solar power has a bright future in the Asia-Pacific region, and that it will play a key role in the energy transition and de-carbonization. The report says that solar power will not only provide clean and affordable electricity, but also create jobs, stimulate innovation, and enhance energy security. The report also says that solar power will contribute to the social and economic development of the region, and help achieve the United Nations Sustainable Development Goals.
Source: MINING.COM
