10 May 2021
Posted in Power
Solar PV installations to grow by over fourfold in Australia by 2030, says GlobalData
The solar photovoltaic (PV) capacity in Australia, which stood at 17.99 GW in 2020, is estimated to reach 80.22 GW in 2030. The solar PV accounted for 21.7% of Australia’s total power capacity in 2020 and it is estimated to reach 47.56% in 2030, according to GlobalData, a leading data and analytics company.
GlobalData’s report ‘Australia Power Market Outlook to 2030, Update 2021 – Market Trends, Regulations, and Competitive Landscape’ reveals that during 2000–2020, thermal power dominated Australia’s power mix with 58.6% share in the total power capacity in 2020.
However, between 2020 and 2030, the share of thermal power capacity is expected to decline to 27.8% in 2030. Similarly, the share of hydropower capacity is also expected to decline during the same period. Besides, Australia does not have any nuclear power capacity.
Aditya Sharma, Power Analyst at GlobalData, comments: “Australia plans to compensate the decline in thermal and hydropower capacity with renewable power capacity growth. By 2030, the share of renewable power capacity is set to reach 69.9%, driven mostly by solar PV installations. The growth of solar PV in Australia is driven by frequent renewable energy auctions and offering of feed-in tariffs. In addition to the federal initiatives, all eight provinces offer their own schemes supporting the growth of solar PV. For instance, in Australian Capital Territory, in addition to solar PV auctions, the provincial government also offers interest-free loans for rooftop solar.”
Australia has observed a significant adoption of rooftop solar. One of the primary drivers for this increased deployment is the favorable regulatory regime. Further, the financial incentives offered by the government drives this growth. The rate of adoption for rooftop solar in Australia is higher than the global average. In 2020, despite COVID-19 pandemic, the rooftop PV segment added 2.6 GW capacity to the grid, which is 18% more than the capacity added in 2019.
Sharma concludes: “More than one-fourth of households in Australia have adopted rooftop solar PV. In some provinces this adoption has crossed 40%. In addition to government policies supporting rooftop solar PV growth, rooftop solar PV adoption helps citizens to avoid high electricity retail prices and offers higher energy security.”