NEW DELHI: India, the US, and the Middle East are poised to collectively add 100 GW of solar capacity by 2025, reflecting their growing prominence in the global solar energy landscape, even as China continues to dominate, according to a report by Wood Mackenzie.
The report highlights that emerging solar manufacturing hubs in these regions will significantly boost global capacity, challenging China’s long-standing dominance.
Despite these strides, China is expected to retain its leadership, accounting for 75 per cent of the global operational capacity for key module components, equivalent to 1.2 terawatts (TW).
Wood Mackenzie notes that Chinese manufacturers, with government backing, will play a crucial role in rationalising the industry. However, India, the US, and the Middle East are gaining ground, bolstered by investments and local initiatives aimed at expanding solar manufacturing.
Shift towards advanced technology
The report also indicates a shift towards advanced solar technologies, such as TOPCon and Heterojunction (HJT), which are expected to dominate utility-scale applications by 2025, delivering improved module efficiencies and higher power densities.
However, the global solar industry faces challenges, including rising module prices after two years of low-cost overcapacity, and uncertainty in renewable energy policies as several countries transition to new administrations with varying climate agendas.
Protectionist measures and local content mandates in markets like India add further hurdles. Developers and manufacturers in India, for example, face additional costs and challenges due to these mandates.
But the country’s push to strengthen its solar manufacturing base signals its intent to become a key global player in renewable energy.
