The Worldwide Vitality Company (IEA) Photovoltaic Energy Techniques Programme (PVPS) has revealed a wide-reaching snapshot of the worldwide PV market, overlaying installations, manufacturing, coverage tendencies, and grid integration.
World PV capability grew to 1.6 TW in 2023, up from 1.2 TW in 2022, based on the IEA-PVPS Snapshot of World PV Markets 2024.
The analysts stated that as much as 446 GW of recent PV methods had been commissioned final yr, largely pushed by fast progress in China, alongside an estimated 150 GW of modules in inventories all through the world.
“After a number of years of stress on materials and transport prices, module costs plummeted in a massively over-supplied market, sustaining the competitivity of PV at the same time as electrical energy costs decreased after historic peaks in 2022,” stated the IEA-PVPS.
The report stated that the oversupply of PV modules final yr “make clear the difficulties to align manufacturing and demand in a really versatile surroundings.” It famous that whereas manufacturing capacities elevated considerably in China, progress solely occurred in a restricted variety of nations past China.
“Uneven political help in some markets may be attributed to the difficulties to develop native PV manufacturing services in an already inundated market,” the report stated, explaining that vital drops in PV module costs on account of elevated stock, oversupply and aggressive surroundings amongst producers additionally brought on pressure on native manufacturing.
Elsewhere within the report, the IEA-PVPS stated that each the rooftop and utility-scale segments grew in 2023. Roughly 45% of recent capability was on rooftops, persevering with gradual progress seen since 2018 as rooftop markets opened in new nations, whereas lowering set up prices and better consumption prices made it extra accessible for residential buyers. The report famous that prosumers have gotten extra lively market drivers the world over, whereas noting a transfer away from internet metering as PV prices go down.
The variety of nations with theoretical penetration charges above 10% doubled final yr, to 18. Spain, the Netherlands, Chile and Greece led on this metric, however extra populous nations equivalent to Germany and Japan additionally handed 10% for the primary time.
The IEA-PVPS stated that with more and more excessive PV penetration charges in additional nations, transmission and distribution system operators are having to “anticipate and extra actively handle PV.” In some smaller areas, penetration charges had been so excessive that rooftop photo voltaic supplied 100% of energy over a number of hours a number of instances.
The report additionally famous that coverage help for batteries is advancing, particularly in nations with grid congestion, excessive penetration charges or excessive electrical energy prices. The report warns grid congestion and longer delays for grid connection in some nations is just not permitting native markets to develop to full potential. The IEA-PVPS stated the associated fee burden of managing, reinforcing and renewing grid infrastructure is turning into “one of many extra delicate subjects.”
“As penetration charges improve, new governance fashions suitable with market and local weather coverage pushed deployment targets will have to be established to make sure PV could be easily deployed,” the report stated.
Taking a look at photo voltaic amid the broader power transition, the IEA-PVPS stated that PV is taking part in a “main function” and in 2023 represented greater than 75% of all new renewable electrical energy applied sciences, which it attributes to constant value discount, technical efficiency and accessibility, and usually quicker allowing procedures than wind or hydro.
The most recent IEA PVPS report follows publications on Germany’s end-of-life PV modules remedy chain, grid integration measures, and automobile built-in photovoltaics, all launched earlier this yr.
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