What Cheap Solar Means for Load Management
- Jan 24, 2021 5:41 pm GMT
A new report from Wood Mackenzie predicts the price of solar energy will fall 15-25 percent over the next decade. It’s possible, according to the study, that solar will be the cheapest energy source by 2030. While the technology continues to get cheaper, it’s adoption will also likely be aided by stimulus plans around the world that seek to remedy the economic destruction left by the pandemic while simultaneously working towards carbon cutting goals.
However, even if solar proves very cheap to generate, there still remains the scalability issue. Battery technology and adoption must keep pace with solar adoption if utilities expect to meet demand when the sun isn’t shining. The good news is that storage is set to getting better and will become much cheaper. According to recent statements coming out of the Electric Power Research Institute, it’s possible that costs for battery packs will drop from about $120-200/kWh to $80kWh by 2030.
Scalability will prove even more important in an electrified future. Electric vehicles, both in the private and public sectors, are expected to take a significant chunk of market share this decade. At the same time, home appliances and buildings are becoming more electric as well. If behavior patterns remain the same, this move towards electric will logically increase electric power demand. It will be interesting to see if the demand can be met, at least in large part, with solar.
No discussions yet. Start a discussion below.
Get Published - Build a Following
The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.
If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.