There is no doubt an element of pressure on countries to achieve their carbon emission reduction and renewable energy targets over the next few years and, of course, one of the ways of doing this is by increasing the number of solar panels being installed on both residential and commercial premises. Therefore, it is interesting to hear of a report produced by IHS, a market research firm, which refers to the capital expenditure that certain countries are forecast to spend on solar power in the next few years.
Saudi Arabia is forecast to increase its use of renewable energy to generate electricity
(image credit: ricketyus)
Apparently, the report expresses an opinion that during the next four years capital expenditure on solar power is expected to increase by in excess of 40% each year in Africa, South America and the Middle East – that is a significant investment. However, here in Europe and the United States of America, only 5% to 10% growth is expected.
Overall, globally, it is forecast that next year will see an increase of 30% on funds being spent on equipment that is utilised to manufacture solar panels plus other capital expenditure. In monetary terms this equates to $3 billion with that being no small sum.Interestingly, this would be the first such worldwide increase seen since 2011. In fact, in 2012, the amount spent on capital expenditure reduced by a huge 72% with a further reduction amounting to 36% forecast for this year.
The Middle East is forecast to become a huge user of solar power with Saudi Arabia looking to outlay in the region of $100 billion by 2032 to produce 33% of its electricity supply by renewable energy. It will be interesting to see if China looks to obtain some of this business especially when you consider the problems that it has had in its dealings with countries within the European Union and also the USA in recent months.
Your thoughts, as always, are most welcome.
