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Solar disruption
The number 1 power source
Bruce Douglas
Chief Operating Officer, SolarPower Europe
Chairman, Global Solar Council
November 2016
2
What is SolarPower Europe?
• The new EPIA (European Photovoltaic
Industry Association)
• A member led association
representing organisations active
along the whole value chain
• Shapes the regulatory environment
and enhances business opportunities
Over 200 members including the following leading companies:
Founding Association Members
3
4
1. Cheapest power source in many regions
2. Highly versatile
3. Fast deployment
4. Significant local socio-economic benefits
5. Hedge against future electricity price
increase: cost of MW/h known in advance
and fixed for 20 years
6. Clean (locally and globally)
SOLAR DISRUPTION
5
1.Tipping point?
6
TIPPING POINT - INVESTMENTS
7
TIPPING POINT – GROWTH OF RENEWABLES
POWER GENERATION CAPACITIES ADDED IN THE EU 28 IN 2015
Source: EWEA, ESTELA, SOLARPOWER EUROPE
TIPPING POINT - INSTALLATIONS
9
TIPPING POINT – ENERGY CONSUMPTION
US EIA
EMERGING MARKETS
EVOLUTION OF EUROPEAN ANNUAL PV GRID CONNECTIONS VS.
GLOBAL 2010 - 2015
© SolarPower Europe 2016
11
SUNNY 5-YEAR FORECAST FOR MOST MARKETS
Global Market Outlook 2016-2020
12
CHEAPER THAN GAS & COAL
Carbon Tracker
13
2. Cost of energy
14
VIRTUOUS PRICE CIRCLE
15
COST REDUCTION OF PV MODULES
BNEF
SOLAR INCREASINGLY COST-COMPETITIVE
– EVEN WITH ONSHORE WIND
16
REDUCTION IN LCOE – COMPARED TO WIND (1)
Global Market Outlook 2016-2020
Location $/MWh
US 38
Dubai 29
Mexico 35
Abu Dhabi 24
Chile 29
Argentina 59
17
REDUCTION IN LCOE – COMPARED TO WIND (2)
18
Large-scale solar is now cost-competitive with other technologies…
19
COST REDUCTIONS - 2025
IRENA – Global weighted average cost – PV installed
COST REDUCTIONS - 2050
Source: AGORA Energiwende
A combination of price competition, long-term contracts, good resources
and financial de-risking measures creates deployment opportunities in
newer markets and at lower costs.
21
3. #1 Power Source
22
GROWTH to 2020 – Annual global market
Global Market Outlook 2016-2020
UNCERTAINTY IN POLICY SUPPORT MEANS THE FORECAST FOR
ANNUAL INSTALLATIONS IN 2020 RANGES FROM 62 TO 120 GW !
IF MARKET DESIGN IS SET CORRECTLY, SOLAR AS LOWEST
COST RES COULD REACH 15% SHARE IN EU BY 2030
23
GROWTH to 2030 – EU electricity contribution
Global Market Outlook 2016-2020
24
ENERGY STORAGE: GROWTH to 2030
GROWTH to 2040 - High global penetration levels
GLOBAL INSTALLATIONS COULD REACH 5000 GW BY
2040 WHICH WOULD PROVIDE 15% OF GLOBAL
ELECTRICITY
26
GROWTH to 2050 – Cumulative global scenario
IEA
#1 POWER SOURCE
Solar Disruption

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Solar Disruption

Editor's Notes

  1. Learning curve – economies of scale Fallen 80% since 2009 and will continue to fall 10% a year – a further 60% by 2025