Milestone: Over one trillion watts of wind and solar installed – pv magazine International
Installing this first trillion watts reportedly required an investment amounting to US$2.3 trillion. However, as technology and markets are maturing and adapting, installing the second trillion watts will require an investment of just $1.23 trillion, thus marking a large reduction in costs.
Similarly, the time it took to install the first trillion watts amounted to 40 years. But, with global ambitions increasing and falling prices enabling ever more renewable energy assets to be installed, the analysts believe the second trillion watts will be commissioned as early as 2023.
90% of the one trillion was installed over the course of the last 10 years. BloombergNEF attributes Germany’s pioneering energy market design in the early 2000s, which fostered transparency for investors and bankers, as key to this uptake. Through feed-in-tariffs, like the German “EEG”, return in investment calculations have become much less risky, thus making this type of electricity generation conducive to an increasing number of financial stakeholders.