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Energy Solutions

Cost of renewable energy continues to fall

An analysis from Bloomberg shows that in particular the price of photovoltaic solar has plunged in the last year, while wind energy and battery storage are also becoming cheaper.

14 Apr. 2019
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Cost of renewable energy continues to fall (Photo: RawFilm on Unsplash)

Bloomberg New Energy Finance, or BloombergNEF for short, has calculated that renewable energies have come down significantly in price since mid 2018, taking the levelized cost of electricity (LCOE) , which specifies costs for the conversion of different energy forms into electricity, as the measured value.

According to BloombergNEF’s analyses, the LCOE for photovoltaics has fallen by 18% since mid 2018. This is primarily attributable to the change in photovoltaics policy in China, which led to a surge of modules on the market in Q3 2018, and consequently a fall in prices. At the start of 2019, the LCOE was therefore just US$ 57 per megawatt-hour. Wind energy has also become cheaper. Since mid 2018, costs for onshore wind have fallen by 10% to US$ 50 per megawatt-hour, while costs for offshore wind have tumbled by 24% to below US$ 100 per megawatt-hour.

The LCOE for photovoltaics, onshore wind, and offshore wind have therefore fallen by 84%, 49%, and 56% respectively since 2010. BloombergNEF also reports positive results for battery storage, for which the LCOE has dropped by 76% since 2012.

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