Solar capacity in developing nations more than doubled in 2016

According to the latest review from Bloomberg New Energy Finance (BNEF), new solar capacity is growing at an unprecedented rate due to decreased costs and innovative applications that facilitate energy access for millions.

BNEF has released a comprehensive review of clean energy developments in developing countries as part of its annual Climatescope, a country-by-country assessment of clean energy and climate-related investments worldwide.

During 2016, 34 gigawatts (GW) of new solar capacity was added in 71 emerging market countries, in comparison to 22GW in 2015 and only 3GW in 2011.

The data indicate an increase of 54 percent from the previous year and a more than threefold increase in three years. 

                                         Source: Bloomberg New Energy Finance 

Solar additions in China have accounted for the vast majority of this number, as the country added 27GW of solar in 2016 alone. India added 4.2GW.

Brazil, Chile, Jordan, Mexico, and Pakistan are some of the 14 emerging nations that doubled their solar installed capacity in 2016.

Innovative energy access opportunities in emerging nations, such as PV micro-grids, battery backed pay-as-you-go off grid systems, water pumps or even PV-powered mobile phone towers are significantly boosting the deployment of solar.

According to BNEF, such opportunities are pursued often by private entrepreneurs and venture capitalists.

Start-ups, in particular, have taken the lead, securing financing from private actors and establishing partnerships with large corporations. One innovative financing tool is the end-customer financing, where communities pre-pay the project.

Ethan Zindler, Head of Americas for BNEF said: “The massive drop in photovoltaic module prices we’ve seen over the last several years continues to reverberate through developing countries”.

He added: “It’s creating opportunities ranging from multi-million dollar projects that serve the grid, to small-scale installations that enable farmers to boost their yields through better irrigation and to connect to the Internet”.

To learn more about this year’s Climatescope findings click here.