This base case, referred to as ‘New Policies Scenario’, anticipates that renewables will capture two-thirds of global investment in power plants to 2040, as they become the least-cost source of new generation for many countries. Since 2010, costs of new solar photovoltaics (PV) have fallen by 70%, while wind costs have declined by 25%.
The publication projects that fast-declining costs will turn solar PV into the cheapest source of new electricity generation and further accelerate the technology’s deployment. Already in 2016, growth in solar PV capacity was larger than for any other form of generation.
“Solar is forging ahead in global power markets as it becomes the cheapest source of electricity generation in many places, including China and India,” IEA executive director Dr Fatih Birol avers.