New research suggests that solar power is on track to become the dominant energy source by 2050, surpassing fossil fuels. Although this transition promises a cleaner and more sustainable energy future, there are several key challenges that need to be addressed to ensure its success. These challenges include the need for stable power grids, securing solar finance in developing countries, addressing the demands of the solar supply chain, and overcoming political opposition from declining industries.
The study, led by the University of Exeter and University College London, is part of the Economics of Energy Innovation and System Transition (EEIST) project, which is funded by the UK Government’s Department for Energy Security and Net Zero and the Children’s Investment Fund Foundation (CIFF).
According to the research, solar photovoltaics (PV) is projected to become the dominant power source even without support from more ambitious climate policies. However, the study highlights four key barriers that could hinder the transition to solar power. The first barrier is the creation of stable power grids that can handle the variability of solar generation. To address this, investments in other renewables such as wind, transmission cables linking different regions, extensive electricity storage, and demand management policies can be implemented.
The second barrier is access to finance for solar projects, particularly in developing economies. Currently, low-carbon finance is concentrated in high-income countries, and international funding primarily favors middle-income countries. This leaves lower-income countries, especially those in Africa, lacking the necessary solar finance, despite their significant investment potential.
The third barrier involves the supply chains required for a solar-dominated future. As the demand for renewable technologies increases, there will be a greater need for critical minerals such as lithium, copper, nickel, and cobalt. Ensuring a sustainable and ethical supply chain for these minerals is crucial to the success of the solar transition.
The fourth barrier is political opposition from declining industries. The transition to solar power may put the livelihoods of up to 13 million workers worldwide in fossil fuel and dependent industries at risk. Regional economic and industrial development policies can help mitigate these risks and resolve any inequities caused by the transition.
Addressing these barriers is deemed more effective than relying solely on financial tools such as carbon taxes to accelerate the clean energy transition. The researchers argue that governments should focus on implementing policies that overcome these challenges to ensure the successful integration of solar power into the global energy mix.
In conclusion, while solar power is projected to become the dominant energy source by 2050, several barriers need to be addressed to ensure a smooth transition. By focusing on stable power grids, securing solar finance in developing countries, addressing supply chain demands, and overcoming political opposition, governments can pave the way for a cleaner and more sustainable energy future.
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- Source: Coherent Market Insights, Public sources, Desk research
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