Increased availability of affordable solar panels and batteries, according to Scatec CEO, will boost renewable energy's influence in the power market.
**Headline:** Cheaper Solar Panels and Batteries Expand Renewables' Role in Power Market, According to Scatec CEO
The global power market is witnessing a significant shift towards renewable energy, particularly solar power and battery storage, as emerging markets embrace the technology to meet rising energy demands and decarbonize their economies. This transition is being driven by falling costs, policy support, and technological advancements, as highlighted by the CEO of Scatec, a renewable energy developer.
**Current Trends**
The global installed solar power capacity is set to more than double by 2025, with emerging markets like Saudi Arabia, India, and parts of Asia Pacific leading the charge. The global solar power market size was approximately USD 269 billion in 2024 and is projected to grow to around USD 495 billion by 2034. Asia Pacific is a major driver due to rapid urbanization, rising incomes, and strong renewable energy demand.
The cost of solar energy has dropped significantly over the past decade, making utility-scale solar more competitive than fossil fuels in many markets. This trend is accelerating solar uptake worldwide, with lower levelized costs of energy (LCOE) driving the shift. Emerging technologies like Concentrated Solar Power (CSP) are also gaining momentum, offering dispatchable power even during low sunlight periods.
Battery storage is increasingly integrated with solar installations to offset intermittency, enhance reliability, and provide grid stability. While the detailed global market size for battery storage was not available, the synergy between renewables and storage is a widely recognized trend enabling higher solar penetration, particularly in emerging markets.
**Future Prospects**
Emerging markets such as Saudi Arabia are investing heavily in solar infrastructure to diversify energy sources away from fossil fuels and meet renewable targets. This model is anticipated to be replicated across other emerging economies in Asia, Africa, and Latin America. Asia Pacific will continue to dominate global solar markets due to its large consumer base, high urbanization rates, and governmental renewable commitments.
Encouraging policies and subsidies globally are expected to accelerate solar+battery market expansion, making clean energy accessible and affordable for developing economies. Advances in solar panel efficiency, battery chemistries, and storage duration technologies will further propel growth.
Scatec, a renewable energy developer, is at the forefront of this transition. The company is building a 1-gigawatt project in Egypt to help meet rising domestic demand and has won a tender in South Africa to provide firm system capacity with a combined solar and battery plant offering stable supply for 16.5 hours a day. Scatec currently operates 4.2 gigawatts (GW) of capacity, with another 0.8 GW under construction.
In addition, Scatec's projects are primarily located in emerging markets and often receive subsidies or capacity payments. The company's CEO recently mentioned that cheaper solar panels and batteries are expanding the roles of renewables in the power market. Scatec has 2 GW of near-term prospects for renewable energy projects, and a successful project in Cameroon saved the country $35-40 million by leasing two battery plus solar systems from Scatec.
In conclusion, the role of renewables, particularly solar power and battery storage, is expanding rapidly in the global power market, with emerging markets playing a critical role in this transition. This shift will underpin sustainable energy access and decarbonization goals worldwide over the next decade.
The finance sector is increasingly allocating funds to the renewable energy industry, recognizing the economic benefits and sustainable potential of clean energy solutions such as solar power and battery storage.
With the expanding role of renewables in the power market, there's a growing need for innovative financial mechanisms to support the development and deployment of renewable energy projects, particularly in emerging markets.
