September 5, 2019 Read More →

Study finds solar-plus-storage already cost competitive across Europe

PV Tech:

A study co-written by industry figures has put forward new claims of the cost-competitiveness of European solar-plus-storage, amid predictions that grid parity will unfold continent-wide by 2025.

In work carried out with the support of PV research institute ETIP PV, researchers examined six solar markets in Europe’s north and south and found levelised costs of electricity (LCOE) fell below average spot prices across all already in 2018. Assuming weighted average costs of capital of 7%, solar grid parity was already present last year in Málaga (LCOEs of €24/MWh), Helsinki (€42/MWh) and cities in four other EU countries, the study said.

Solar competitiveness – understood as the gap between average spot market prices and lower PV LCOEs – was most pronounced in high-irradiation Spain and Italy, followed by the UK, France, Germany and Finland, the analysis claimed.

The analysts explained their LCOE calculations factored in costs and margins including manufacturing, plant roll-out and O&M. They admitted assessing LCOEs is not challenge-free – “investors do not usually publish their budgets,” they said – and added data had been pulled from BloombergNEF, Solargis and other sources.

The findings, the study said, should help steer the ongoing global debate on how to tackle climate change. “Policymakers need to be informed that PV is the cheapest form of electricity, especially if its inherent low…risks are taken into account,” the document added.

More: Study touts fresh claims of European solar-plus-storage’s sound economics

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