LCOE

Lithium-ion batteries are increasingly posing a competitive threat to coal- and gas-fired generating plants when paired with solar and wind projects in a number of markets throughout the world, without the need for subsidies, according to new research by BloombergNEF (BNEF).

A European energy system powered solely by renewables is economically feasible, according to a study which suggests decentralized energy systems operating within the framework of a stronger pan-European energy trade could reduce the cost of electricity from the €69/MWh price seen four years ago to around €51 in 2050.

While solar is lauded as a cheap energy resource in OECD countries, the cost of financing PV projects in developing nations has impeded progress. Development banks and the Clean Technology Fund they finance have played a key role in providing access to cheap financing for clean energy projects in many markets.

The U.K. Solar Trade Association has published a new assessment, finding that the cost of generating solar electricity in the British Isles has already fallen far below its earlier predictions, and could reach GBP 40 (US$50)/MWh by 2030.

Solar and/or wind are said to be the cheapest source of new energy generation in all major economies, apart from Japan, finds BloombergNEF. It adds that China’s utility-scale PV market has contracted by over a third this year; and that battery costs are set to drop a further 66% by 2030, driven by EV adoption.

As the deployment of renewable energy continues to expand around the world, driven by various inputs, such as capital allocation and investment, falling capital costs, competitive LCOE and various policy mechanisms, we are now moving towards a new era for renewable energy. ‘Renewables 2.0’ will have significant, wide-ranging consequences for all market players, as regulators reduce their support and power producers seek new revenue models. In this article, Duncan Ritchie, partner at Apricum – The Cleantech Advisory, will look at the key market developments for renewables, explode the myth of grid parity, highlight the need for flexibility and explain the importance of new financing solutions that are capable of meeting the new complexities brought about by ‘Renewables 2.0’.

Talking to pv magazine, Andrea Viaro, head of technical service Europe for JinkoSolar, explains how the Chinese manufacturer is dealing with PID degradation.

‘Unprecedented challenge’ for fossil fuels as low LCOE for solar and wind power, allied to tumbling storage costs, sees renewables claim larger share of bulk and dispatchable generation while adding vital flexibility to global energy mix.

According to Fraunhofer ISE experts, PV’s Levelized Cost of Energy (LCOE) currently ranges between €0.0371 and €0.1154 per kWh in Germany. The potential for further cost reductions is vast, the researchers add.

All forms of renewable energy will be cost competitive with traditional generation sources by 2020. This was one of the key findings in the latest report from the International Renewable Energy Agency (IRENA). It was delivered yesterday at IRENA’s 8th annual Assembly in Abu Dhabi.