4.3 A closer look at innovation Speed and scale: Advanced energy solutions decarbonize hard-to-abate sectors and eliminate CO from the atmosphere. 2 Advanced solutions – including hydrogen, sustainable aviation fuels, advanced nuclear, The IEA estimates that around $2.8 trillion will be storage, carbon and demand management – invested in energy in 2023. More than $1.7 trillion harness, manage and use clean energy across is going to clean energy, including renewable the energy system. As key enablers of the energy power, nuclear, grids, storage, low-emission fuels, transition, they help address the intermittency of ef昀椀ciency improvements and end-use renewables renewable energy, enable electri昀椀cation of transport and electri昀椀cation. For every $1 spent on fossil and industry, improve system ef昀椀ciency, fuels, $1.7 is now spent on clean energy. Five years ago this ratio was 1:1. FIGURE 13 The price of solar modules declined by 99.6% since 1976 Price per Watt of solar photovoltaics (PV) modules (logarithmic axis) The prices are adjusted for inflation and presented in 2019 US$. 1976 $100 1977 1978 With each doubling of installed capacity the price 1979 $50 of solar modules dropped on average by 20.2%. 1980 This is the learning rate of solar modules. 1981 $20 1983 1985 1986 $10 1990 1994 1998 1995 2000 $5 2002 2005 2008 2009 $2 2010 2011 $1 2012 2013 2015 2016 $0.5 2MW 5MW 20MW 50MW 2019 1 MW 10 MW 100 MW 1,000 MW 10,000 MW 100,000 MW = 1,000,000 Watt Cumaltive installed solar PV capacity (logarithmic axis) Source: Roser, Max, “Why did renewables become so cheap so fast?”, Our World in Data, 1 December 2020, https://ourworldindata.org/cheap-renewables-growth (accessed 17 May 2023). Like wind and solar, the giga scale and system needs to see battery storage capacity industrialization of advanced solutions have the grow 15 times22 and carbon capture, usage 23 potential to drive down costs – thus, there is and storage 40 times by 2030. Similarly, the a need to exponentially accelerate the speed clean hydrogen market is expected to grow 24 and advanced and scale of their deployment. For example, to from $0.5 billion to $120 billion 25 be on the path to net zero by 2050, the energy biofuels from $3 billion to $180 billion. Fostering Effective Energy Transition: 2023 Edition 31