factors of production definition world history

Factors of production definition world history drivers#

Power generation from solar PV increased by a record 270 TWh in 2022, up by 26% on 2021. Deployment is expected to remain on this level in the medium term thanks to continuous demand for renewable energy from industry and electricity retailers.

Brazil added almost 11 GW of solar PV capacity in 2022, doubling its 2021 growth.A new target to increase PV capacity auctioned to 40 GW annually and dynamic development of the domestic supply chain are expected to result in further acceleration in PV growth in the near future. India installed 18 GW of solar PV in 2022, almost 40% more than in 2021.Investment and production tax credits will give a significant boost to PV capacity and supply chain expansion. The United States included generous new funding for solar PV in the Inflation Reduction Act (IRA) introduced in 2022.

Factors of production definition world history drivers#

New policies and targets proposed in the REPowerEU Plan and The Green Deal Industrial Plan are expected to be important drivers of solar PV investment in the coming years. The European Union is accelerating solar PV deployment in response to the energy crisis, with 38 GW added in 2022, a 50% increase compared to 2021.The 14th Five-Year Plan for Renewable Energy, released in 2022, provides ambitious targets for deployment, which should drive further capacity growth in the coming years. China continues to lead in terms of solar PV capacity additions, with 100 GW added in 2022, almost 60% more than in 2021.Achieving this will require continuous policy ambition and effort from both public and private stakeholders, especially in the areas of grid integration and in addressing policy, regulation and financing challenges.Ĭountries and regions making notable progress to advance solar PV include: Maintaining a generation growth rate aligned with the Net Zero Scenario will require reaching annual capacity additions that are close to three times higher than those of 2022 until 2030. The tracking status of solar PV has therefore been upgraded in 2023 from “more effort needed” to “on track”. Continuous growth in the economic attractiveness of PV, massive development in the supply chain and increasing policy support, especially in China, the United States, the European Union and India, are expected to further accelerate capacity growth in the coming years.

This generation growth rate matches the level envisaged from 2023 to 2030 in the Net Zero Emissions by 2050 Scenario. It demonstrated the largest absolute generation growth of all renewable technologies in 2022, surpassing wind for the first time in history. Solar PV generation increased by a record 270 TWh (up 26%) in 2022, reaching almost 1 300 TWh.