Global solar generation outpaces wind power

Global electricity generation from solar farms exceeded power generation from wind farms since May, marking the longest period in history that solar has overtaken wind as the leading utility-scale renewable energy source. Solar electricity production surpassed wind generation by 1.65 terawatt hours (TWh) in May and 9.57 TWh in June, think tank Ember revealed. Power generation data for July and August has not yet been released; however, the two months will likely see a continuation of this trend, given that July is typically the peak month for solar output in the Northern Hemisphere, while August is typically the second largest month of solar generation. Solar generation previously surpassed wind generation in August and June 2023, but never before has it put together such a sustained portion of higher generation.

That said, wind power is likely to regain its status as the world’s leading source of renewable energy in September, thanks to the changing angle of the sun’s rays, coupled with increasing wind speeds, as winter approaches in Europe, North America and North Asia. In addition, global wind power generation is likely to be at least 30% higher than solar generation for the whole of 2024, as the peak period for wind generation is normally in winter, when wind power can be more than two or solar production. Over the past two decades, wind power has been the leading source of utility-scale renewable energy, generating 2,311 TWh of electricity in 2023, compared to 1,632 TWh by solar farms. However, over the past five years, solar generation has grown twice as fast as wind generation, largely due to the lower costs and faster construction times of solar farms compared to their wind brethren. Global solar capacity increased by 188% from 2018 to 2023, compared to 80% increase in wind capacity over the time frame.

Big Solar beats Big Oil

Solar energy is now challenging even fossil fuels in the global energy mix. because Big oil companies are credited with powering the second industrial revolution, solar energy could become the main energy source of the fourth industrial revolution due to its simplicity, longevity, low cost and overall efficiency. Indeed, Bloomberg he revealed that the seven largest solar companies – all located in China – provide more energy to the world than the seven largest producers of fossil fuels.

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According to Bloomberg, the largest manufacturers of solar panels consist of Tongwei, GCL Technology Holdings (OTCPK:GCPEF), Xinte Energy, Longi Green Energy Technology, Solar trine, JA Solar Technologyand Jinko Solar (NYSE:JKS) produce enough panels to generate 5 exajoules of electricity each year. In comparison, the seven oil giants incl Exxon Mobil Corp. (NYSE:XOM), Chevron Corp. (NYSE:CVX), Shell Plc (NYSE: SHEL), TotalEnergies (NYSE:TTE), BP Plc (NYSE:BP), ConocoPhillips (NYSE:COP) and Eni S.p.A (NYSE:E) extracts about 40 exajoules of petroleum energy from the ground per year, or just under 18 million barrels per day.

Big Solar beats Big Oil when you consider several factors. First, only about a quarter of the energy coming out of an oil company’s wells is converted into useful energy, the vast majority being lost as heat. In comparison, electric motors convert over 85% of electrical energy into mechanical energy, compared to less than 40% for a gas-burning engine. According to the EPA, the average electric car is two to three times more efficient than the average conventional car with an internal combustion engine. Second, most solar panels have a 25-year warranty, while fossil fuels are mostly used up in a few months. If you look at the long-term flow of energy into the global economy with each solar cell produced, solar companies come out way ahead if you consider the oil reserves held by these oil companies, as well as what each sector can produce without major importance. additional investments.

On a company basis, Bloomberg estimates that Tongwei – the world’s largest solar panel maker – will soon supply more than 9 exajoules of energy annually when its 400,000-ton polysilicon plant in Inner Mongolia comes online, surpassing the 8.3 exajoules of Exxon.

Last year, the International Energy Association PREDICTED that the amount of capital investment flowing into the solar sector would exceed the amount of investment that went into oil production for the first time in history. Speaking on CNBC, IEA chief executive Faith Birol said there was a “the widening gap between investment in fossil energy and investment in (in) clean energy. Clean energy is moving fast – faster than many people realize. This is clear in investment trends, where clean technologies are pulling away from fossil fuels. For every dollar invested in fossil fuels, about $1.7 is now directed to clean energy.”

By Alex Kimani for Oilprice.com

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