The Sun Is On The Way To Become The Cheapest New Power Source
Wood Mackenzie’s report, Total Eclipse: How will falling costs secure solar power’s dominance?
“As the world seeks to recover from the economic collapse caused by the COVID-19 pandemic, while at the same time meeting the climate and environmental goals of the Paris Agreement, solar energy is poised to advance efforts towards a low-carbon, sustainable future,” says Ravi Manghani. , Research director at Wood Mackenzie. “Solar energy is becoming so competitive that it is not only a decarbonization tool for institutional buyers, but also a way of lowering energy costs for their business.”
The sun is currently the cheapest form of new electricity generation in 16 US states – plus Spain, Italy and India. Even in the COVID-19 outbreak, global installations exceeded 115 gigawatts GW in 2020 compared to 1.5 GW in 2006. Solar power growth on this scale is driven in part by government subsidies and environmental targets, while solar power generation is now attractive for price. alone.
In the next decade, Wood Mackenzie expects further cost reductions to be achieved through growth and development in various technologies:
-Bifacial panels. New solar cell technology allows both sides of a panel to generate power – up to 15% more
-Larger solar modules. This allows more than the surface area of each panel to generate power, leading to large gains in output.
– The audience. More solar installations include motorized systems that track the movement of the sun and change the alignment of the panels to increase energy capture.
Wood Mackenzie emphasizes that its appearance only takes into account technological advances that are already good in the commercial development line. The projections do not foresee any breakthrough in next-generation solar technology or other innovations that could provide an even higher side of the view.
Operating costs are also expected to decline over the next ten years. Technologies already widely used by the wind energy industry, such as drones for inspections and thermal imaging, will make operations more efficient, such as the development of technologies such as artificial intelligence.
Battery storage is becoming a bigger part of the solar development equation because solar energy only generates it when the sun shines. The highest priced clocks for electricity still coincide with solar generation clocks in most markets. Both developers and utilities are preparing for possible changes in demand by including storage in their plans.