The International Energy Agency has predicted that the world will add 1,200 gigawatts of renewable energy by 2024, a 50% increase on what’s in place now. That would see renewables’ share of global power generation rise to 30% by 2024 from 26% today.
But for now that seems to be a tall order, mainly due to the rapidly spreading coronavirus across the planet that is collapsing economies big and small and by extension undermining demand in all almost sectors, save for the health and medical industry.
Solar accounts for 60% of the anticipated rise, and the IEA reckons photovoltaic stations are becoming competitive with new fossil fuel plants faster than expected.
Iran has a high potential for promoting solar power as there are over 300 sunny days in a year in more than two-thirds of the country, ISNA reported.
According to government estimates, there is potential for installing 150,000 megawatts of solar power. In recent years, private companies have invested over $1 billion in the gradually expanding renewable sector, mainly solar and wind.
However, renewables still have a very small share in the domestic power industry. Currently about 850 MW of the total 85,000 MW installed capacity comes from renewables.
A total of 120 large-scale solar power stations and 3,500 plus smaller farms in urban and rural areas produce green energy.
According to the Energy Ministry, green energy data show that 44% is from solar, 40% wind power, 13% small hydroelectric plants, 2% geothermal and 1% biomass.
According to the Sixth Five-Year Economic Development Plan (2017-22), renewable energy should comprise at least 5% of the total power output. However, the truth is that the volume now is barely 1% indicating that renewable pledges remain on paper and far from reality.
New Challenges
Despite the IEA forecast of growth in global renewable capacity in the next four years, energy producers have been facing new challenges from largely unexpected quarters.
Soon after the coronavirus battered the world, mixed reports emerged about its impact on the global solar market. While PV manufacturing operations are now beginning to return to normal in China, questions remain about the impact on demand.
Covid-19, as the killer virus is known, with more than 1.2 million cases across the globe and 69,000 reported dead, has sent almost half the world’s 7.5 billion population into lockdown.
Analysts say that a significant contraction in demand is likely this year. However, some companies have reported record sales, with consumers reportedly panic-buying solar panels and storage equipment for possible tougher times ahead.
Deadlines have been eased for projects that are still in the construction phase and firms in some countries have reported that PV development is now at a complete standstill.
The French and German governments, for example, have responded to complaints from solar developers by adjusting tender schemes and considering measures to avoid financial penalties and the loss of incentives due to missed deadlines.
