CCTV News: Solar Power Expected to Surpass Coal Power and Become the Main Source of Electricity Generation by 2027

According to a recent report from the CCTV-2 finance channel program "World Finance" by China Central Television (CCTV), the International Energy Agency (IEA) recently stated that by 2027, solar power is expected to surpass coal power and become the main source of electricity generation.

Over a decade ago, solar power was barely noticeable in the global energy competition, with less than 1% of electricity generation coming from solar power. But now, the situation has changed. The IEA predicts that in three years, solar power generation will surpass natural gas, and within four years, by 2027, it may surpass coal to become the main source of electricity generation.

One important reason for this shift is the significant decrease in the installation cost of solar power. Data shows that the average construction and operation costs for utility-scale solar power have been continuously decreasing since 2009 and were approximately $36 per megawatt-hour (MWh) in 2021, a decrease of about 90% compared to 2009. In contrast, the cost of coal has remained relatively stable and was around $108 per MWh in 2021. Bahar, an analyst in the renewable energy market at the IEA, expects that solar power will account for almost 60% of newly built power facilities in the next five years.

Moreover, in recent years, governments around the world have increasingly emphasized energy security and introduced corresponding policies to support it. According to the European Union's plan, its solar photovoltaic installed capacity will increase by more than double from 2020 to 2025, reaching 320 gigawatts, and will reach 600 gigawatts by 2030. The US's "Inflation Reduction Act" is expected to allow solar power developers to enjoy certain tax credits and deductions for ten years, enabling long-term and large-scale construction.

However, solar power generation still faces some challenges. The White House in the US has stated that over 70% of the US power grid has been in use for over 25 years, and the old transmission lines may not meet the demand for clean energy such as solar power. In addition, the traditional locations of power grids may not be suitable for transporting clean energy. Upgrading the power grid may further increase the cost of electricity.

Source: CCTV News Editor: Inner Mongolia Carbon Neutrality Industry Association Editorial Department Disclaimer: Please indicate the source when reprinting.