Global Solar Power Expansion Surges, Investment Shifts Towards Renewables

The International Solar Alliance (ISA) has released its latest series of World Solar Reports, showcasing record growth in global solar capacity, evolving investment trends in renewables, breakthrough solar technologies, and the significant potential for green hydrogen production in Africa. These insights, shared at ISA's Seventh Assembly in New Delhi and introduced by India’s Minister for New and Renewable Energy, Pralhad Joshi, highlight solar power’s accelerating role in sustainable energy.

The World Solar Market Report outlines a striking increase in global solar capacity, which has surged from 1.22 GW in 2000 to 1,418.97 GW by the end of 2023. This expansion includes a substantial addition of 345.83 GW in 2023 alone, marking solar as a dominant force in renewable energy, constituting approximately 75 per cent of new renewable capacity worldwide. According to the ISA, this trend points towards further growth, with projected global solar capacity set to reach between 5,457 GW and 7,203 GW by 2030, reflecting an annual growth rate of 40 per cent.

Notably, this growth is largely driven by demand in the Asia-Pacific region, where solar installations are outpacing those in other parts of the world. Asia-Pacific has become a focal point of the solar energy boom, and countries in the region, including China and India, are leading global efforts to expand sustainable energy capacity.

The World Investment Report further illustrates solar energy’s rise by revealing that solar power now commands 59 per cent of the global renewable investment market. Out of a total USD 673 billion invested in renewable energy in the past year, USD 223 billion was allocated to solar energy, with Asia-Pacific countries spearheading these investments. The report notes that global energy investments have grown by an average of 5 per cent per year since 2018, totaling USD 3.1 trillion by 2024. This investment surge in solar reflects both increased demand and strong governmental support for renewable solutions, as countries aim to reduce dependence on fossil fuels.

Another key theme of the ISA reports is the critical role of advanced technology in improving solar energy efficiency and affordability, outlined in the World Technology Report. Innovations, such as high-efficiency solar PV panels, have seen a significant improvement, reaching 24.9 per cent efficiency. Additionally, costs for utility-scale solar have dropped by around 90 per cent since 2010, positioning solar as one of the most affordable sources of renewable energy. The report also highlights gains in solar manufacturing efficiency, with modern processes now using 88 per cent less silicon per watt peak than in 2004, making solar panels more accessible and environmentally friendly.

In a pioneering shift toward green hydrogen, the Green Hydrogen Readiness Report focuses on Africa’s potential to lead in this emerging field. Identifying nations such as Egypt, Morocco, Namibia, and South Africa, the report points out that these countries are particularly well-suited to become green hydrogen hubs due to their abundant renewable resources, which could support sustainable production at scale. Green hydrogen, produced through electrolysis powered by renewable energy sources, offers a carbon-free alternative to traditional fossil fuels and is poised to play a crucial role in industrial decarbonisation. With large-scale projects already under consideration, Africa could become a major supplier of green hydrogen to global markets, advancing its position in the renewable energy sector.

In addition to providing a market outlook, the ISA reports underscore the importance of international cooperation in reaching renewable energy targets and fostering climate resilience. The organisation emphasises that achieving global renewable energy goals will require not only capital investment but also active collaboration on policy, technology transfer, and capacity building across developed and emerging economies.

These findings reinforce solar energy’s central role in the global energy transition and underscore the potential economic and environmental benefits for countries that prioritise renewable resources. With these projections, the ISA aims to inform policy-makers and industry leaders worldwide, driving accelerated action towards a sustainable, low-carbon future.