Large-scale solar energy package for double-digit growth – Goldman Sachs

SINGAPORE (Reuters) – Solar power generation capacity at the utility scale is expected to increase to double digits in 2019 and 2020, thanks to extensions in the US, Europe, the Middle East and in China, announced Thursday the American bank Goldman Sachs.

Solar energy is the fastest growing source of electricity generation, taking its share of the fossil fuel market such as thermal coal and natural gas, with governments and companies defining more and more energy. in addition to clean energy goals.

"We expect a combination of reduced solar energy costs and favorable political support, which will offer a multi-year track at the utility level, in order to generate significant market benefits", said the US investment bank in a research note.

Goldman said it expects utility-scale solar installations to reach 108 gigawatts (GW) by 2019, an increase of 12 percent over the previous year, and then increase. by 10% in 2020 to reach 119 GW.

For 2021 and 2022, the capacity of the bank is expected to reach 129 GW and 135 GW.

(Graph of solar capacity growth: tmsnrt.rs/2UyT2mB)

Large scale solar is defined as a facility designed solely to power grid electricity, unlike small scale residential solar units.

If residential facilities are included, most badysts predict that global solar power capacity will soon reach 600 GW.

"We expect the strongest growth to materialize in key regions such as the US, Europe and the Middle East, while we expect upside potential in China, where demand appears to have stabilized in recent months as a result of a collapse at the end of the decade. 2018, "he added.

Solar energy is booming, not only because of government and corporate sustainability goals, but also because of the sharp decline in panel prices in recent years.

Solar panel costs have risen from about $ 70 per watt of electricity produced in 1980 to $ 0.36 per watt in the United States, according to the Wood Mackenzie Energy Council.

Thanks to the solar energy boom, Goldman said the solar energy companies were "selectively constructive". First Solar, Canadian Solar, Vivint Solar, Long Green Energy Technology and Tongwei are expected to perform well.