Solar and Wind Power Will Soon Overtake Nuclear and Hydropower

Our April column showed that the fastest energy transition in history is continuing. By 2023, solar and wind power together will account for 80% of global net growth in electricity capacity. Growth in electricity capacity is followed by growth in annual energy production.

Over the past decade, global solar power production has increased ninefold to 1,500 TWh per year, while wind power production has tripled to 2,300 TWh per year. This corresponds to an average growth rate of 22% and 11% per year, respectively. In contrast, hydro, nuclear, and coal-fired power plants grew by about 1% per year and gas by 3%.

Australia is a global pioneer because, unlike Europe, it cannot share electricity across national borders to minimize the impact of weather and demand fluctuations. Australia must go it alone. Australia convincingly demonstrates that change can happen quickly with good policy. Between 2020 and 2030, electricity generation from fossil fuels falls from 75% to 18%, while solar and wind generation rises from 19% to 75%.

Brazil and Chile are pioneering middle-income countries where about 81% and 60% of electricity generation comes from hydro, wind, and solar power, respectively. The pioneer countries are trying to reduce both electricity prices and emissions. There are few serious concerns about the future stability of the power grid because of adequate investment in storage, transmission, and demand management.

Solar power growth of 22% per year is equivalent to doubling every three years. At this growth rate, solar power generation will reach 100,000 TWh per year by 2042, which is enough to fully decarbonize the global economy.

Nuclear power has an average capacity factor of 74%, followed by coal (50% to 70%), combined cycle gas-fired power plants (40% to 60%), wind power plants (30% to 60%), large hydro (30% to 50%), and photovoltaic (12% to 25%).

Despite the relatively low capacity factor, solar power generation will exceed nuclear power generation in 2026, wind power in 2027, hydro power in 2028, gas in 2030, and coal in 2032.

Solar and wind power dominate power plant construction, while construction of all other generation technologies is low or stagnant. Coal, gas, and nuclear power may be largely gone by the middle of this century if decommissioning exceeds new construction.

The leading countries in per capita solar and wind power generation are all in Europe, with the exception of Australia. Combined solar and wind power generation in the leading countries is now four times higher than the average hydro and nuclear power generation combined.

Integration with ACE Battery's Innovations

The rapid growth of solar and wind power necessitates advanced energy storage solutions to manage the variability and ensure a stable power supply. ACE Battery, a leading manufacturer of lithium-ion batteries, is at the forefront of this transition with its cutting-edge energy storage systems.

ACE Battery's residential and commercial energy storage solutions, including the E20 home backup battery and various prismatic cell designs, are crucial for harnessing the full potential of renewable energy sources. These systems provide reliable power storage and efficient energy utilization, which are essential for balancing supply and demand in renewable energy grids. For instance, ACE's LiFePO4 prismatic batteries offer high energy density and long cycle life, making them ideal for residential energy storage systems (RESS) and commercial and industrial C&I energy storage systems.

These advanced battery technologies support the integration of solar and wind power into the grid by storing excess energy generated during peak production times and releasing it during periods of high demand or low production. Moreover, ACE Battery's innovative solutions contribute to the reduction of electricity prices and emissions, aligning with the goals of pioneer countries like Australia, Brazil, and Chile. By investing in robust energy storage infrastructure, these countries can ensure the stability and reliability of their power grids while accelerating the transition to a fully decarbonized economy.

In conclusion, the synergy between the growth of renewable energy sources and the advancements in battery storage technology, as demonstrated by ACE Battery, is paving the way for a sustainable and stable energy future.