According to the research company Wood Mackenzie, the growing demand for solar energy will support silver prices, while the three main metals will also benefit from the global transition to green energy. Their report, published at the beginning of the week, says that the increase in demand for solar energy will lead to an increase in prices for copper, aluminum, and zinc.

"Base metals are an integral component of solar energy systems. A typical solar panel installation requires aluminum for the front frame and a combination of aluminum and galvanized steel (zinc) for the structural elements. Copper is used in cables for high and low voltage transmission, as well as in thermal insulation materials," the author of the report and senior analyst Kamil Wlazly wrote.

Woodman assumes that with falling costs and increasing efficiency, the share of solar energy in the energy supply will grow and begin to displace other forms of generation.

Aluminum and zinc may provide the most benefits in the growing solar market. WoodMac expects demand for these non-ferrous metals to at least double in the next 20 years.

Kamil Wlazly noted that the demand for aluminum from solar technologies currently amounts to about 2.4 million tons. However, according to the company's research, demand may grow to 4.6 million tons by 2040. In more optimistic scenarios, consumption growth will be from 8.5 to 10 million tons by 2040.

As for zinc, the solar energy sector accounts for about 0.4 million tons of consumption. According to WoodMac research, consumption growth will grow to 0.8 million tons in the next 20 years. Accordingly, the demand for zinc may rose from 1.7 million tons to 2.1 million tons by 2040.

In terms of Copper, it is assumed to play a more important role in the solar sector as it remains the preferred metal for an upgraded electric grid. Woodman expects that the demand for copper will grow from 0.4 million tons to 0.7 million tons by 2040. In their optimistic mood, demand may grow to about 1.3 and 1.6 million tons.

However, Kamil Wlazly warned that Copper is in a more dangerous position compared to the other two metals. He said that higher copper prices may lead to substitution in the energy market.