The latest report from the International Energy Agency Photovoltaic Power Systems Programme (IEA PVPS) sheds light on the current state of global PV markets in its “Snapshot of Global PV Markets 2024.” Despite a record surge in installations, concerns linger over profitability and manufacturing dynamics, urging for strategic interventions and policy support to ensure a resilient and sustainable PV ecosystem.
According to the report, the global PV cumulative capacity reached an impressive 1.6 terawatts (TW) in 2023, up from 1.2 TW in 2022. This growth was fueled by the commissioning of approximately 446 gigawatts (GW) of new PV systems, with an estimated 150 GW of modules in inventories worldwide. The market saw a significant drop in module prices amidst an oversupplied market, maintaining PV’s competitiveness even as electricity prices declined post-2022 peaks.
Key highlights include China’s remarkable PV installations, soaring to 235 GWDC (potentially 277 GW), accounting for over 60% of global capacity. Europe continued its robust growth trajectory, spearheaded by Germany, while the Americas witnessed substantial expansion, particularly in the USA and Brazil. India experienced a slight slowdown with 16 GW installed primarily in centralized systems, alongside other Asia-Pacific markets.
The report underscores the doubling of countries with theoretical penetration rates exceeding 10%, with policy measures and technical solutions addressing grid congestion issues. However, the viability of local manufacturing projects remains uncertain due to oversupply and plummeting module prices driven by increased production capacities in China.
PV’s pivotal role in reducing CO2 emissions from electricity is highlighted, with over 75% of new renewable capacity installed in 2023 attributed to PV, generating nearly 60% of new renewable generation.
The report illuminates the challenges of aligning production and demand in the PV market, exacerbated by uneven political support and constraints in key markets such as the USA, India, Korea, and Australia.
Overall, the “Snapshot of Global PV Markets 2024” underscores the imperative for strategic interventions and policy support to navigate the complexities of the evolving PV landscape towards a sustainable future.
