Solar PV is now ‘Cheapest Electricity in History’, confirms IEA in significant update to its annual energy outlook
- Dec 14, 2020 9:41 am GMT
The IEA (International Energy Agency) says SOLAR power is now the cheapest form of electricity to build in a significant update of its cost of energy position. It says this results from risk-reducing financial policies globally and applies to locations with both more favorable policies and easier access to financing. As emphasized on this post previously, effective Policy is all important to encouraging development of renewables & environmentally forward technologies.
Carbon Brief (CB) summarizes the extensive IEA World Energy Outlook 2020 with key details. Its main scenario has 43% more solar output by 2040 than it expected in 2018 partly due to detailed analysis showing solar power is 20%~50% cheaper than thought.”! Calculations depend on financing figures compared with the amount of output for solar projects, meaning that as solar panel technology gets more efficient & solar panel prices continue to fall, investors are getting much better financing deals. Solar's 'cheapness' is based on companies building solar projects. It is a Big Deal, because power plant CAPEX has been a key factor for coal & gas power being so dominant.
Emerging Reality Fact > with its new, Lower Cost of Capital, Solar Power's Cost per Megawatt has fallen almost completely Below both Gas and Coal in most key jurisdictions worldwide.
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