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PV could be cheaper than wholesale electricity in the UK by 2025, STA

Iris Hellas
Δημοσιεύθηκε σε Φωτοβολταικά - Διεθνή · 21 Νοέμβριος 2014

The cost reduction of large-scale solar in the UK will occur more rapidly than forecasted by the UK Department of Energy and Climate Change (DECC), according to a new report from the UK Solar Trade Association (STA). The report estimates that the cost of large-scale solar will drop 33% between 2014 and 2020, with a further 11% reduction expected between 2020 and 2030. While individual technology cost is not the only consideration in developing efficient low-carbon electricity systems, this expected reduction in the cost of large-scale solar indicates that PV could become cheaper than gas (Combined Cycle Gas Turbine or CCGT) by 2018, 5 years earlier than predicted by the DECC. It also implies that PV will become cheaper than the wholesale electricity price in the UK between 2025 and 2028, thus reaching grid parity. CCGT plants are projected to increase in costs in real terms over the next 15 years, while large-scale solar is currently the only technology forecasted to become cheaper than wholesale electricity, the report finds. Despite the reduction in the cost of large-scale PV, the technology still needs to be subsidized, just as fossil fuels are, claims STA. Moreover, retaining stable government support and a stable policy framework for large-scale solar is in the best interests of consumers in the medium and long term as it will ultimately lead to cheaper electricity bills once solar reaches the zero subsidy level. Thus STA advises the DECC to revisit its projections for large-scale solar and to reconsider its decision to reduce support for the technology.

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