The World Solar Report 2024 released by the International Solar Alliance (ISA) provides a critical look into the advancements, challenges, and opportunities in the global solar industry. This report, now in its third edition, was introduced at the 7th ISA Assembly and aims to reflect the rapid expansion of the solar energy sector. The 2024 edition comprises four main sections: the World Solar Market Report, the World Investment Report, the World Technology Report, and the Green Hydrogen Readiness Assessment for African Countries. Each section is designed to shed light on a unique aspect of the industry, offering data-driven insights and highlighting key areas for further investment and development.
The Role of the International Solar Alliance (ISA)
The ISA was founded in 2015 as a coalition of 124 countries dedicated to promoting solar energy on a global scale. Headquartered in Gurugram, India, the organization collaborates with numerous global financial and development institutions to accelerate solar adoption, particularly in developing countries rich in solar resources. The ISA’s mission includes ambitious targets to mobilize $1 trillion in solar energy investments by 2030, expand solar capacity to 1,000 GW, and reduce global CO₂ emissions by approximately 1,000 million tonnes annually.
World Solar Market Report
The World Solar Market Report provides a comprehensive overview of the global solar industry’s growth trajectory:
- Global solar capacity has seen a dramatic rise, scaling from 1.22 GW in 2000 to an impressive 1,418.97 GW by 2023. This 40% annual growth demonstrates the impact of falling solar costs and strong policy support.
- Projected growth rates suggest that global capacity could reach 5,457 to 7,203 GW by 2030, primarily driven by commitments to the Paris Agreement and national renewable energy targets.
- Solar energy supports 7.1 million jobs worldwide, out of a total of 16.2 million jobs in the clean energy sector.
- Manufacturing output in the solar sector is projected to exceed 1,100 GW by 2024, which is twice the current global demand, indicating improved affordability and accessibility of solar technology.
World Investment Report
The World Investment Report focuses on financial flows within the renewable energy sector, with specific emphasis on solar investments:
- Global energy investments are set to increase from $2.4 trillion in 2018 to $3.1 trillion by 2024, reflecting a global pivot toward renewable energy.
- Investments in solar energy alone account for 59% of total renewable energy investments, thanks to consistent declines in panel costs and improvements in efficiency.
- The Asia-Pacific (APAC) region leads solar investments, closely followed by Europe, the Middle East, and Africa (EMEA). This regional distribution highlights APAC’s position as a solar investment hub, driven by significant solar uptake in China and India.
World Technology Report
The World Technology Report discusses innovations in solar technology and their potential to reshape the global energy landscape:
- Technological advancements in monocrystalline solar PV modules have led to 24.9% efficiency, while emerging multijunction perovskite cells promise even greater efficiencies at lower costs, challenging traditional silicon-based panels.
- Material efficiency has also improved significantly. The industry saw a reduction in silicon usage by 88% in 2023 and a 90% drop in utility-scale solar PV costs, demonstrating the potential for environmentally friendly, cost-effective solar technology.
Green Hydrogen Readiness Assessment for African Countries
This section identifies opportunities for green hydrogen production across African nations, assessing each country’s readiness based on available renewable resources:
- Egypt, Morocco, Namibia, and South Africa are recognized as high-potential hubs for green hydrogen production due to their abundant renewable resources.
- Green hydrogen, produced using solar energy, presents an essential pathway for sectors traditionally dependent on fossil fuels, such as steel and fertilizers, to decarbonize.
Strategic Global Partnerships and Key Institutions
ISA collaborates with a range of international organizations and development banks to further its solar mission, each of which plays a vital role in funding, technical support, and project implementation:
- United Nations (UN): Offers support through the UNFCCC, which aids in creating renewable energy frameworks in developing countries.
- World Bank Group (WBG): Committed over $1 billion in financing solar infrastructure in low-income countries, with a focus on large-scale generation and transmission projects.
- European Investment Bank (EIB): Supports solar development in Africa and Asia, prioritizing regions lacking sustainable energy access.
- Asian Development Bank (ADB): Provides funding and expertise in the Asia-Pacific, aligning with ISA’s goal to expand regional solar capacity.
- African Development Bank (AfDB): Actively promotes solar initiatives in Africa, notably the Desert to Power Initiative, which targets 10 GW of solar power in the Sahel region.
Major Programs and Initiatives under the ISA
The ISA has launched several large-scale initiatives to drive its solar objectives:
- Affordable Solar Power Coalition for India and Africa (ASCAI): Focuses on providing accessible solar energy to communities in India and Africa.
- One Sun, One World, One Grid (OSOWOG): A visionary project aiming to create a global solar power grid that connects solar resources across continents, addressing fluctuating energy demands with cross-border power-sharing.
India’s Role in the ISA and OSOWOG Initiatives
As a founding nation, India plays a central role in advancing ISA’s initiatives, aligning with its own sustainable development and energy security goals:
- Leadership and Innovation: India’s leadership within ISA and the OSOWOG project underscores its strategic interest in establishing itself as a global leader in renewable energy.
- Economic Growth: Solar energy investments lead job creation, technological innovation, and economic opportunities in India, especially with a target of 500 GW in non-fossil fuel-based power by 2030.
- Environmental Commitment: Through initiatives like ISA and OSOWOG, India is working to reduce its carbon footprint and bolster biodiversity conservation efforts.
India’s Solar Energy Progress and Key Insights 2024
Current Solar Energy Capacity
India’s solar energy capacity has reached 90.76 GW as of September 2024, reflecting an impressive 30-fold increase over the past nine years. This expansion has been shaped by favorable government policies, technological innovations, and rising investment in renewable infrastructure.
- Total Power Capacity: India’s total installed power capacity stands at 450.7 GW.
- Renewable Energy Mix: Renewable energy now contributes 44.3% of the total capacity, with solar energy alone making up 19.6%.
Growth Trends
- Annual Growth: India expects to add 23 GW of new solar capacity in 2024, a 77% rise compared to 2023.
- Quarterly Update: In Q3 2024, India generated 32 billion units (BU) of solar power, up from 27 BU in Q3 2023. Key states like Rajasthan, Gujarat, and Tamil Nadu contributed substantially through utility-scale solar projects.
- Rooftop Solar: The rooftop segment added 3.2 GW in early 2024, supported by programs like PM Surya Ghar: Muft Bijli Yojana offering subsidies for household solar setups.
Government Initiatives
India has implemented several solar-focused policies to strengthen renewable capacity:
- National Solar Mission (2010): This mission, under the National Action Plan on Climate Change (NAPCC), promotes solar technology deployment across India.
- Production-Linked Incentive (PLI) Scheme: Aiming to boost domestic manufacturing, this scheme allocated INR 4,500 crore to expand production of high-efficiency PV modules.
- PM Surya Ghar: Muft Bijli Yojana (2024): Provides free electricity to households with subsidies for rooftop installations, benefiting nearly 1 crore households.
- Solar Parks and Floating Solar Projects: New solar parks and floating PV projects on water bodies are under development to maximize solar generation without using land space.
India’s renewable energy sector has become a major investment hub, with 100% foreign direct investment (FDI) permitted for solar projects, supported by government incentives and a solid solar supply chain. Despite rapid growth, India’s solar sector faces:
- Regulatory Hurdles: Uncertainties in policy can affect investment and project timelines.
- Infrastructure Needs: Grid capacity requires upgrades to handle renewable input.
- Land and Technological Constraints: Land access and need for tech advancements pose challenges.
Looking forward, India targets a 500 GW renewable capacity by 2030, with a major contribution from solar, while also aiming to reduce carbon intensity by 45%. This expansion aligns with India’s commitment to sustainable development and global climate goals.
The initiatives and partnerships promoted by ISA emphasize the urgent need for energy security. By creating a global grid, OSOWOG aims to stabilize energy supply and mitigate risks associated with energy market volatility. Renewable energy access helps to conserve biodiversity by reducing the need for destructive fossil fuel extraction methods, highlighting the environmental benefits of a solar-powered global grid. The World Solar Report 2024 demonstrates the momentum of the solar energy sector as it becomes central to global energy transitions. With strong leadership from ISA and cooperation from countries worldwide, solar power is rapidly advancing as a key solution to the climate crisis.