New European solar installations to double over next 3 years, Wood Mackenzie

New solar installations within the European market will double in the next 3 years to reach a level of approximately 20 GW per year. Total installed capacity in the region will surpass 250 GW by 2024, according to new Wood Mackenzie Power & Renewables’ report »Europe Solar PV Market Outlook 2019«. Germany will remain Europe’s largest PV market, installing 21 GW between 2019 and 2024. Spain will come a close second, with almost 20 GW of mostly utility-scale capacity expected. A total of 7 European countries will install at least 5 GW during the period, while eighteen will install more than 1 GW, expects the consultancy.
»Solar PV is growing in Europe against a backdrop of rapid power sector decarbonisation. Several EU member states have already committed to 100 percent renewable power or zero-carbon power targets, while the EU is discussing the adoption of an economy-wide net-zero emissions target by 2050,« says Tom Heggarty, Wood Mackenzie Power & Renewables Senior Analyst. Over 170 GW of gas, coal and nuclear capacity will be displaced from the market by 2040. Solar PV’s share of generation will reach 13 percent by 2040 up from 4 percent today.
Feed-in tariffs and subsidies will be withdrawn from many markets within the next 5 years. »Competitive auctions have taken over from feed-in tariffs as the most popular means of procuring solar PV in Europe.« 24 GW of capacity was awarded to the end of 2018, with another 47 GW confirmed across more than a dozen markets.
Distributed solar generation for self-consumption remains a crucial part of Europe’s solar market and will account for nearly 40% of capacity installed from 2019 to 2024. As government support is scaled back – the region has a patchwork of different models to incentivise deployment from FITs, to net metering, to investment rebates –, »it will be necessary to increase rates of self-consumption in order to make investments stack up«, says Tom Heggarty. »Pairing solar with battery storage will become more commonplace.«
© PHOTON

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