Onshore wind power currently in full competition with fossil fuels in various parts of the globe, whereas solar power is coming closer, says Bloomberg New Energy Finance (BNEF).
BNEF’s Levelised Cost of Electricity Update for the 2nd-half of 2015 indicates the cost of onshore wind and solar PV has declined again, whereas costs have increased for gas-powered and coal-powered energy production.
The global mean levelised cost of electricity* (LCOE) for onshore wind decreased to USD$82 per MWh in the 2nd-half of 2015, where as that of crystalline silicon solar cells dropped to USD $122.This has been linked with not solely cheaper technology, but also technology with lower investing costs.But the Levelised Cost of Electricity for coal-powered energy generation rose from $66 per MWh in the first half to $75 in the second half in the United States, from $68 to $73 in Asia-Pacific, and from $82 to $105 in Europe.
The Levelised Cost of Electricity for combined-cycle gas turbine production has increased from $76 to $82 in the US in the 2nd-half, from $85 to $93 in Asia-Pacific and from $103 to $118 in Europe, the Middle East and Africa.Onshore wind is in full competition with gas-powered and coal-powered generation in terms of cost in the United Kingdom and Germany once carbon costs are chipped in.Bloomberg New Energy Finance says the cost of fossil energy like coal and gas has gone extremely higher as a result of lower consumption levels, and in relation to Europe, a higher carbon price hypothesis.
“Nuclear energy in the US and Europe jumped to $261/MWh and in the Middle East and Africa region, $158/MWh.” Bloomberg New Energy Finance indicates.
The importance of the wind and solar energy revolution kept a lot of countries, stakeholders and industries in the surprised-state, including Bloomberg New Energy Finance, it seems.
“Onshore wind and solar PV are both now much more competitive against the established generation technologies than would have seemed possible only five or 10 years ago,” Luke Mills, Analyst, Energy Economist at BNEF, indicated.