Solar energy will be the cheapest energy
Solar energy is currently the cheapest form of new energy in many international markets. This fact is driven by factors such as cost reduction, growth of two-phase technology and increase of solar panel area. That's the conclusion of a new report by analyst wood Mackenzie, which also predicts that the cost of solar photovoltaic power generation could fall further by 25% over the next decade.
"Total solar eclipse: how will cost reduction ensure the dominance of solar energy?" the report points out that solar energy is the cheapest form of power generation in Spain, Italy and India, with the exception of 16 countries in the United States. Similarly, the document predicts that in the next decade, the list will include the United States, Canada, China and 14 other countries. In this regard, China reported last week that its renewable energy capacity will increase significantly by 2020. In particular, the Asian giant claims to have installed 48 gigawatts of solar power.
Advances in operational technology and automation processes will help reduce the operating costs of new plants and further optimize the benefits of solar costs relative to other asset classes.
The cost of solar energy has fallen by 90% in the past decade and is expected to fall by 15% - 25% by the end of this century, the report said.
Technology to reduce the cost of solar energy
These cost reductions will be achieved through advances in technologies (biphasic panels, large area batteries and modules, and trackers) that combine to increase solar production deployed around the world. In addition to these technologies, advances in operational technology and automated processes will help reduce the operating costs of new plants and further optimize the cost-effectiveness of this energy relative to other asset classes.
Wood Mackenzie also stressed that his forecast is based on technologies that have proved their technical and commercial feasibility so far, so the sum of new technological advances may have an impact, reducing the cost of photovoltaic power generation to a level beyond his forecast.
Ravi manghani, director of research at wood Mackenzie, said: "as the world tries to recover from the recession caused by the coved-19 epidemic, while achieving the climate and environmental goals of the Paris Agreement, Solar energy is in a unique position to move towards a sustainable, low-carbon future. "
