Since the inception of Things Are Good we’ve been following the demise of dirty fossil fuel usage and the rise of clean energy. A few highlights from over the years:
Solar Power Is Cheaper Than Nuclear
Solar And Wind Outgrow Subsidies
Wind Power: One Of The Cheapest Sources Of Energy
German Coal And Gas Power Plants Closing Due To Cheap Renewable Energy
The rise of renewable energy is even more impressive given the massive subsidies given to fossil fuel industries. Despite the bailouts for companies operating in the tar sands, the car subsidies, and other related government handouts, renewable energy just gets cheaper and cheaper.
This past month the International Energy Agency declared solar to be the cheapest source of electricity in history. Cheaper than coal!
Now, the IEA has reviewed the evidence internationally and finds that for solar, the cost of capital is much lower, at 2.6-5.0% in Europe and the US, 4.4-5.5% in China and 8.8-10.0% in India, largely as a result of policies designed to reduce the risk of renewable investments.
In the best locations and with access to the most favourable policy support and finance, the IEA says the solar can now generate electricity “at or below” $20 per megawatt hour (MWh). It says:
“For projects with low-cost financing that tap high-quality resources, solar PV is now the cheapest source of electricity in history.”
The IEA says that new utility-scale solar projects now cost $30-60/MWh in Europe and the US and just $20-40/MWh in China and India, where “revenue support mechanisms” such as guaranteed prices are in place.