Rapid Solar Growth in Central and Eastern Europe
Context:
Electricity generation from solar farms in Central and Eastern Europe (CEE) is experiencing unprecedented growth, outpacing the growth rates of wealthier and sunnier regions in Western, Southern, and Northern Europe.
- Data from Ember highlights the significant rise in solar output across this region, driven by supportive clean energy policies and the decreasing costs of solar installations.
Key Highlights:
Exceptional Growth Rates:
- Utility-run solar output in the five largest solar producers in Central/Eastern Europe—Austria, Bulgaria, Hungary, Romania, and Poland—increased by 55% in the first seven months of 2024 compared to the same period in 2023.
- This growth rate is more than double the average for Europe as a whole and significantly exceeds the growth rates in Western, Southern, and Northern Europe.
Key Drivers:
- Poland and Hungary: These countries are the main drivers of solar growth in the region. In the first seven months of 2024, Poland generated 11.3 TWh of solar electricity (up 33.3% from 2023), and Hungary generated 5.8 TWh (up 47.7% from 2023).
Capacity Expansion:
- The five largest solar producers in CEE have expanded their solar generation capacity more rapidly than their peers in other regions since 2019, setting the stage for continued growth.
Comparative Performance:
- Despite their rapid growth, the five largest solar producers in CEE generated 25.2 TWh of electricity in the first seven months of 2024, which is less than the 83.53 TWh generated by Western Europe’s largest solar producers and the 76.12 TWh generated by Southern Europe’s largest solar producers.
- However, the CEE region’s annual solar growth rate of 49% far outpaces the growth rates in Western (16%) and Southern Europe (21%).
New Solar Projects:
- Significant new projects include the 60 MW Tapolca solar farm in Hungary and a 40 MW project in Poland. The region’s largest project is the 400 MW Apriltsi solar farm in Bulgaria, which features over 800,000 photovoltaic panels and supports agrivoltaic use.
Significance:
- Competitive Edge: The rapid growth in solar energy generation in Central and Eastern Europe demonstrates the region’s ability to compete with wealthier Western European economies in renewable energy, reflecting how affordable solar installations have become relative to other forms of electricity generation.
- Transition from Coal: This growth is particularly significant in a region historically reliant on coal, signaling a major shift towards clean energy and reducing carbon emissions.
- Future Potential: The CEE region is well-positioned for continued expansion in solar energy, with strong policy support and innovative projects like agrivoltaics that combine agriculture with solar energy production, potentially transforming the landscape of renewable energy in Europe.
- Strategic Importance: If the current growth rates continue, CEE could surpass Western and Southern Europe in solar electricity generation by the end of the decade, playing a critical role in Europe’s overall energy transition and efforts to combat climate change.
India’s solar energy potential:
- India possesses abundant solar energy potential, with approximately 5,000 trillion kWh of energy incident over its land area each year, and most regions receiving 4-7 kWh per square meter per day.
- Solar photovoltaic (PV) power offers significant scalability opportunities in India.
- The National Institute of Solar Energy has estimated the country’s solar potential at about 748 GW, assuming that 3% of the wasteland area can be utilized for solar PV modules.
- India has set ambitious targets for renewable energy capacity, aiming to achieve 175 GW by 2022 and 500 GW by 2030. This marks the world’s largest expansion plan in renewable energy.
- In 2021, India ranked as the second-largest market in Asia and third globally for new solar PV capacity additions, with 13 GW installed. In total installations, India ranked fourth globally, surpassing Germany for the first time with 60.4 GW.
- India has made significant strides in solar power deployment, achieving the fifth global position by surpassing Italy. Solar capacity has increased more than elevenfold in the last five years, from 2.6 GW in March 2014 to 30 GW in July 2019.
- Presently, solar tariffs in India are highly competitive and have achieved grid parity.
- Furthermore, high-efficiency solar PV modules have been included in the Production-Linked Incentive (PLI) Scheme to enhance India’s manufacturing capabilities and boost exports.
Major initiatives implemented by the Indian government to promote solar energy:
- Approval of 45 solar parks with a total capacity of 37 GW.
- Operation of top solar parks like Pavagada (2 GW), Kurnool (1 GW), and Bhadla-II (648 MW).
- Installation of the world’s largest renewable energy park, a 30 GW solar-wind hybrid project in Gujarat.
- Launch of various schemes such as Solar Park Schemes, VGF Schemes, CPSU Schemes, Defence Schemes, Canal bank and canal top Schemes, Bundling Schemes, and Grid Connected Solar Rooftop Schemes.
- Implementation of policies including a trajectory declaration for Renewable Purchase Obligation (RPO) and waiver of Inter-State Transmission System (ISTS) charges and losses for inter-state sale of solar and wind power.
- Establishment of clear standards for solar PV systems and devices deployment.
- Amendment of building bye-laws to mandate rooftop solar panel installation for new constructions or higher Floor Area Ratio.
- Accordance of infrastructure status to solar projects.
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