In a recent report, Energy Transition Outlook 2023, published by Norway-headquartered international registrar and risk management company DNV, the average cost of energy (LCOE) for solar PV is forecast to fall to $0.021 (€0.02)/kWh by 2050, while installed solar capacity will grow to 15.3 TW, a huge surge that will create new opportunities for the PV cable This huge surge will bring new opportunities for the PV cable market.
The report notes that the success of solar photovoltaics has been fuelled by declining unit investment costs. Currently, the cost per kilowatt (kW) of installed capacity is estimated at USD 870 (EUR 820), however, this figure is set to decrease further in the coming years as the number of PV installations increases, and will soon fall below USD 700/kW by 2030, eventually dropping to USD 560/kW. This trend will accelerate the rollout and expansion of solar PV projects, creating a huge demand for the PV cables market.
PV cables are a key component of solar PV power generation systems and are used for transmitting power and data signals. With the large-scale deployment of solar power generation, the PV cables market has witnessed a robust growth. The growth of this market is not only driven by the increase in installed solar capacity globally, but also by the rise of emerging markets. According to a DNV report, solar production in India, the Middle East and North Africa is expected to triple, increasing its share of the global photovoltaic power generation market from 6 per cent and 3 per cent in 2022 to 14 per cent and 12 per cent by mid-century.
Another key trend is the solar energy surge in Europe, which is expected to surpass fossil energy production by 2030, which will have a significant impact on the PV cables market. Europe's decarbonisation agenda and solar support policies will drive an increase in solar projects, which will increase the demand for PV cables.
China and the U.S. currently lead the global PV installations, but according to DNV, both countries will see a slight decline in PV installations by 2050 as facilities become saturated. This could lead to a booming PV cable market in other regions, such as India, the Middle East and North Africa.
Overall, the solar cables market faces tremendous opportunities with the booming solar PV industry and the growth of renewable energy sources across the globe. This market is expected to continue to grow, offering promising prospects for cable manufacturers and suppliers, while also helping to drive the development of clean energy and the global energy transition.
