Solar Power Is Now The Cheapest Form of Energy in Almost 60 Countries
Data from Bloomberg New Energy Finance (BNEF) show that the average price of solar energy in almost 60 countries dropped to US$1.65 million during 2016, just below wind at US$1.66 million per megawatt.
It means that renewable energy will be a more attractive path for companies investing in new power plants in the future.
Solar energy is a reliable source of energy that can provide sunlight electricity to those who need it, with little or no impact on the environment. From communities in need to owners looking to save, everyone can benefit from this positive trend.
Climate change is a reality. We can no longer bury our heads in the sand about how we have changed our environment to improve the use and reliance on non renewable energy resources.
But the good news is that 2018 will finally mark a change in our use of global energy. Next year we will see that wind and solar energy become the lowest cost energy generation form in the whole world.
This cost is lower than those who are interested in maintaining our planet are increasingly aligned with those who are driven by profit. The costs of solar energy and energy are decreasing every year, and today they are lower than coal. In the USA UU., A report by Lazard, the asset management firm, land-based wind energy and solar energy.
With this great news about the state of solar energy in general, we could not be happier to welcome our solar community.
Fossil fuels will not disappear overnight, but we hope that more efficient technology can improve our energy landscape.
Reflecting this uncertainty, this year’s version of the highly influential annual outlook offers four “pathways” to 2040, all of which see a significant increase in renewables. The IEA main scenario has 43% more solar production by 2040 than was expected in 2018, in part due to a new detailed analysis showing that solar energy is 20-50% cheaper than it is. thought.
Despite a faster rise in renewables and a “structural” decline in coal, the IEA says it is too early to declare a peak in global oil use, unless there is stronger climate action. Similarly, it says gas demand could rise 30% by 2040, unless the political response to global warming is intensified.
This means that while global CO2 emissions have peaked, they are “far from the immediate peak and decline” needed to stabilize the climate. The IEA says that achieving net zero emissions will require “unprecedented” efforts from all sectors of the world economy, not just the energy sector.
For the first time, the IEA includes a detailed model of a 1.5 ° C path that achieves global net CO2 emissions by 2050. It says individual behavior change, such as working from home “three days a week” , would be an “essential” role in achieving this new case of “net zero emissions by 2050” (NZE2050).
One of the most significant changes to this year’s WEO report is found in Annex B of the report, which shows the IEA’s estimates of the cost of different electricity generation technologies.
The table shows that solar electricity is between 20 and 50% cheaper today than the IEA had estimated in last year’s outlook, and the range depends on the region. There are also large reductions in the estimated costs of onshore and offshore wind power.
This change is the result of a new analysis by the WEO team, which looks at the average “cost of capital” for developers looking to build new generation capacity. Previously, the IEA assumed a range of 7-8% for all technologies, varying according to the stage of development of each country.
Now the IEA has reviewed the evidence internationally and finds that for solar energy, the cost of capital is much lower, at 2.6-5.0% in Europe and the US, 4.4-5.5% in China and 8.8- 10.0% in India, largely as a result of policies designed to reduce the risk of renewable investments.
In the best locations and with access to the most favorable policy funding and support, the IEA says solar power can now generate electricity “at $ 20 or less” per megawatt hour (MWh). He says:
“For low-cost financed projects that take advantage of high-quality resources, solar PV is now the cheapest source of electricity in history.”