For the first time, Solar to overtake Wind Energy installations in 2016 both globally and in India
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The dramatic fall in solar energy costs are taking the wind out of wind energy sales. Solar installation is set to overtake wind energy capacity installations not only in India, but globally as well. We at Greenworldinvestor have pointed out that wind energy capacity growth has saturated with China and Europe not showing any growth. Even Indian wind industry is more or less stable at 2-3 GW annual additions. However, solar energy is growing rapidly and is set to exceed wind energy in a number of countries. It already exceeds wind in Japan and is set to do the same in USA and India in 2015/2016. India will probably install 2500 MW of solar energy, as compared to 2.4 GW of wind energy next year as per MNRE. Over the coming years, solar energy will overtake wind in a more dramatic fashion. Solar energy costs are declining at an astounding rate and in a couple of years should become lower than wind energy at current cost curve movements.
As per BNEF, solar energy installation will be around 65 GW in 2016 as compared to 55 GW for wind. Even in 2015, it will be a close race with IHS forecasting 57 GW of solar energy. Wind energy is losing out to solar energy as it requires large wind farms, whereas solar energy can be installed quickly on rooftops. Also solar energy costs are declining at a much faster pace than any other form of energy. Solar PV is quickly becoming the dominant technology in energy and UBS has forecasted that it will become the default energy choice by 2025. I think it will attain that position much faster given the advances being seen not only in silicon technology but also in energy storage, removing one of the biggest weaknesses of solar energy.
Lithium like silicon can be found abundantly and it is only the processing costs which makes the cost high. The age of fossil fuel is fast approaching an end in my view.
Source – BNEF
“By next year, solar installations will overtake those for wind by several fold,” Tarun Kapoor, a joint secretary in the ministry, said in an interview in New Delhi on June 8. He was referring to the fiscal year beginning April 1, 2016. Kapoor from the renewable energy minister said India will tender 15,000 megawatts of solar projects this fiscal year.