A Fitch Solutions company, BMI, says the global solar PV project pipeline has expanded by 197 facilities over the last 6 months, led by the North America and Western Europe (NAWE). But with 67 of these, yet it is Asia that holds the largest capacity at over 200 GW with bigger projects.
Of the 197 solar projects, 196 represent solar and only 1 concentrated solar power (CSP) technology. As of May 2023, BMI counts the total solar project pipeline to have grown to 2,142 in its key projects database (KPD) up from nearly 2,000 in December 2022 comprising both PV and CSP facilities.
The global non-hydropower renewables project pipeline is dominated by the solar PV segment, despite the high prices that beset the sector in 2021 and 2022. BMI analysts see solar PV as a 'cost-attractive option to decarbonize power mixes as markets work towards their emission reduction targets'.
An increasing number of public and private companies are investing in solar to cut down their fossil fuel power generation costs.
NAWE region represents 34% of the 196 projects as supportive policies like the US Inflation Reduction Act (IRA) expand the reach of solar with its production tax credit and investment tax credits.
In Western Europe, thanks to the REPowerEU target of increasing total solar PV capacity to over 320 GW by 2025 and to 600 GW by 2030, the pipeline continues to expand. More project announcements can be expected from this region in the coming years.
Asia represented only 34 new solar PV projects to the 196 projects tally. Nonetheless, BMI points out that the capacity of Asia's solar PV projects is larger in capacity since the region has large amounts of land compared to NAWE.
"The region also houses the majority of all solar PV equipment manufacturing, chiefly in Mainland China with expansions in India and Southeast Asia, supplying the region's growing project pipeline," according to the BMI. "However, while the project pipeline is large, not all may come online over the coming 10 years, as the region is subject to project delays given larger and more complex solar PV projects."
Recently, the International Energy Agency (IEA) said solar PV is likely to attract maximum investments for clean energy in 2023, taking in roughly $1 billion/day or $380 billion cumulatively (see Solar Attracting Big Bucks).