The share of global electricity generated by solar photovoltaics (PV) could increase from 2% today to as much as 13% by 2030, according to a new report from the International Renewable Energy Agency (IRENA).

Letting in the Light: How Solar Photovoltaics Will Revolutionize the Electricity System finds the solar industry is poised for massive expansion, driven primarily by cost reductions. It estimates that solar PV capacity could reach between 1,760 and 2,500 gigawatts (GW) by 2030, up from 227 GW today, IRENA Director-General Adnan Z. Amin said.

“Recent analysis from IRENA finds that cost reductions for solar and wind will continue into the future, with further declines of up to 59 per cent possible for solar PV in the next ten years,” he said.

“This comprehensive overview of the solar industry finds that these cost reductions, in combination with other enabling factors, can create a dramatic expansion of solar power globally. The renewable energy transition is well underway, with solar playing a central role.

“World electricity demand is expected to grow by more than 50% by 2030, mostly in developing and emerging economies.

“To meet this demand while also realising global development and sustainability goals, governments must implement policies that enable solar to achieve its full potential.”

Reaching a 13% share of global electricity by 2030 will require average annual capacity additions to more than double for the next 14 years.

The report highlights five recommendations that can help achieve this increase including: updated policies based on the latest innovations; government support of continued research and development activities; creation of a global standards framework; market structure changes; and the adoption of enabling technologies like smart grids and storage.