India, US, Middle East to add 100 GW solar capacity by 2025; China will always be the leader: Wood Mackenzie
India, the US and the Middle East together are expected to add 100 GW of solar capacity by 2025, and China will remain the dominant player in this sector, says Wood Mackenzie.
According to its latest research, module prices will also rise this year, after two years of low solar panel prices due to global glut.
This will compensate for the huge loss of profits experienced by producers, it said.
“Emerging areas in India, the US and the Middle East are expected to add at least 100 GW to solar power generation capacity,” Wood Mackenzie said.
China will continue to be a manufacturing hub. China will continue to be the world’s center for solar power generation with 75 percent (1.2 TW (terawatts) of the world’s operating capacity for large-scale modules, the report said.
Wood Mackenzie said the cooperation of Chinese manufacturers, supported by the Chinese government, will be the key to bringing the industry’s innovation.
By 2025, advanced TOPCon and Heterojunction (HJT) solar technology will be the leading mobile technology for utility-scale applications, displacing p-type PERC (Passivated Emitter and Rear Contact) technology.
This change will lead to more efficient modules and higher energy density.
The global solar industry will also need to adapt to new and more assertive policy this year as many countries hold elections in 2024, and some of the new administrations taking office bring a more conservative climate agenda to the table.
Uncertainty about renewable energy policy and the future of incentives creates uncertainty that will hinder or halt solar project development in many regions.
Protection policies and local content directives present additional costs and challenges, especially in markets that do not have a mature solar production base.
“For example, developers and manufacturers in India face high costs of domestic modules and mounting components, and policies affect project timelines and economic feasibility, preventing the growth seen in 2024,” said Wood Mackenzie.
According to the Ministry of New and Renewable Energy, India’s non-fuel capacity has reached the level of 217.62 gigawatts (GW) as of January 20.
