Ajay Mathur: Solar energy can meet global energy demands by 2027 - INTERVIEW

Solar energy plays a pivotal role in climate action by offering a clean, renewable alternative to fossil fuels, helping to reduce greenhouse gas (GHG) emissions and combat global warming. The International Solar Alliance (ISA), an alliance of more than 120 signatory countries, is a global initiative launched to promote the adoption of solar energy and accelerate the transition to renewable energy. ISA is represented at COP29 in Baku, Azerbaijan, where this year’s COP focuses on implementing actionable climate strategies, including those involving solar energy, as part of the broader effort to meet the Paris Agreement goals. The ISA’s activities emphasize scaling up solar adoption globally and enhancing access to sustainable energy solutions.

News.Az interviewed Ajay Mathur, the Director General of the International Solar Alliance.

- How do you assess the potential of solar energy in addressing energy security?

- These days, we are looking at solar electricity meeting most of our energy demands, both in terms of existing needs and future growth. In most developing countries, electricity demand is increasing. We are seeing a decline in the costs of solar energy and batteries, which can provide round-the-clock energy. This means that the growing energy demands can be met by solar energy in as little as three to four years, by approximately 2027.

I expect that by 2027, solar will be economical for almost every application of electricity you can think of. After that, banks will start asking, "Why should we invest in a more expensive form of electricity when we have a cheaper option with solar plus batteries?"
On the other hand, when it comes to non-electricity needs like thermal fuels, oil, and gas, I don’t think a shift is imminent. This might happen around 2035 to 2040 when green hydrogen—produced using green electricity—becomes cost-effective.

- What key trends in solar energy do you believe will shape the development of the sector in the coming years?

- The first trend is the development of regulations that enable countries to attract private sector capital to invest in solar energy. These regulations must ensure that investors can repatriate their returns across borders.

The second issue is addressing the perception among many investors that developing countries are risky places to invest and may not provide adequate returns. Although this perception is misplaced, it needs to be addressed. Providing guarantees can help mitigate these concerns.

Lastly, there is a shortage of green skills in many developing countries—skills required to design, implement, and maintain solar projects. Addressing this skills gap is critical for the sector’s growth.

- How might advancements in solar technologies impact the reduction of electricity costs for consumers worldwide?

- A few years ago, the efficiency of solar cells was somewhere around 20%, and the cost of solar electricity was 7 to 8 US cents per kilowatt hour. Today, while efficiency has only marginally increased to about 22.5%, the cost of solar electricity has dropped significantly to 2 to 3 US cents per kilowatt hour.

This dramatic price reduction is due to economies of scale as installations have grown, rather than technological advancements alone.

In the future, we’ll see further cost reductions driven by both economies of scale and technological improvements in efficiency. We believe costs could drop to as low as 1.5 US cents per kilowatt hour.

- What are the most significant barriers facing large-scale solar projects, and what can be done to facilitate their implementation?

- In Europe and the US, one of the main barriers is permitting. Large projects require approvals for land use, environmental compliance, and often permission from neighboring communities. These processes can be time-consuming and expensive.
In densely populated countries, space is a major issue. To address this, we’re seeing projects being developed on water bodies like reservoirs or seas.

Another challenge, though less significant now, has been the higher cost of solar electricity compared to fossil fuels. However, as solar becomes more competitive, countries need policies that encourage its adoption to further drive down costs.

- What role can solar energy play in achieving carbon reduction goals?

- Solar electricity allows us to generate the energy we need with zero carbon emissions. This means we can achieve our carbon reduction goals without relying on offsets or carbon credits simply by transitioning to solar electricity.

News.Az