Tech Investments To Slash Solar Energy Costs By Up to 60%: ISA

Tech Investments To Slash Solar Energy Costs By Up to 60%: ISA

Solar energy has been identified as key to bridging energy gaps in low-income countries, ensuring access for over 1 billion people globally through various grid-connected and decentralized solutions. According to a report by the International Solar Alliance (ISA), by 2050, solar adoption is projected to create over 27 million green jobs worldwide, offering significant opportunities for women and marginalized communities.

The ISA, in collaboration with the Boston Consulting Group (BCG), outlined actionable strategies and global pathways in its latest report to leverage solar energy for driving an equitable energy transition while addressing pressing climate, economic, and social challenges. The report highlights solar energy’s potential and presents a roadmap to achieve a 20-fold increase in global solar capacity by 2050.

The report revealed three scenarios to achieve this growth: Slow Transition, Dynamic Transition, and SHINE. The study evaluates solar energy’s role in advancing global net-zero goals, with the SHINE pathway emerging as the most competitive and cost-effective. The report emphasizes that equitable access to solar energy can bridge energy gaps in low-income countries, ensuring energy access for over 1 billion people globally through a mix of grid-connected and decentralized solutions.

• Equitable Access: Solar energy can bridge energy gaps in low-income countries, ensuring access for over 1 billion people globally through a range of grid-connected and decentralized solutions.

• Economic Growth: By 2050, solar adoption is projected to create over 27 million green jobs globally, with significant opportunities for women and marginalized communities.
• Environmental Impact: Accelerated solar deployment within the current stated NDC pathways, could reduce global GHG emissions by 25%, aligning with the 1.5°C Paris Agreement target. 
• Cost Efficiency: Solar energy remains the most scalable and cost-effective renewable energy source, with a projected 60% reduction in generation costs by 2050.

“Solar, needs to be looked at beyond the one-size fits all approach – with targeted pathways across country archetypes. These targeted solutions, will not just significantly reduce the RE-RTC costs but also create substantial socio-economic and development benefits” says Ajay Mathur, Director General, International Solar Alliance. “Solar energy’s unparalleled scalability and versatility makes it the cornerstone of a sustainable future. This report not only provides a clear vision for achieving global solar adoption but also emphasizes the need for cross-archetype collaboration to ensure equitable growth,” said Anirban Mukherjee, Managing Director and Partner, Boston Consulting Group.

Among the major RE sources, solar energy is the cheapest and the most scalable, offering unparalleled potential with significantly lower CO2 emissions per unit of energy compared to other renewables and high flexibility for decentralization. Technology investments and scale benefits in PV and storage are expected to drive down RE-RTC costs by 40%-60% and ensure uninterrupted power supply from solar energy. This trend is projected to be consistent across countries and thus, emerges as a key metric to track the progress of solar energy adoption. 

The report underscores differentiated strategies for high-income countries, emerging economies, low-income countries, and small island developing states, addressing their unique challenges and opportunities in solar adoption. It also highlights innovative solutions, including integrating advanced storage technologies, fostering public-private partnerships, and enhancing policy frameworks for mobilizing investment.

“Solar is the bridge between today’s energy challenges and tomorrow’s opportunities,” noted Karan Mangotra, Sr. Partnership and Strategy Specialist, International Solar Alliance. “The SHINE scenario offers a clear pathway to save up to $4 trillion in transition costs while fostering socio-economic equity.” added Vivek P. Adhia, EAD, Climate and Sustainability, Boston Consulting Group