Solar energy is the cheapest source of power

Solar energy has become the cheapest source of energy for the low income countries this year, which is one more reason to abandon using coal and gas in favour of renewable energy sources.

26.Dec.16 2:52 AM
By Anna Tuzova
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Solar energy is the cheapest source of power

BNEF (Bloomberg New Energy Finance) project shows that the average price of solar energy has decreased to $1,65 million per megawatt in 2016 in about 60 countries.

The analysis is based on average prices in 58 developing countries’ markets, including China, India and Brazil, which means that renewal sources of energy usage will become more attractive for companies engaged in energy projects investing.

“Solar investment has gone from nothing—literally nothing—like five years ago to quite a lot,” as Bloomberg quotes Ethan Zindler, head of U.S. policy analysis at BNEF. “A huge part of this story is China, which has been rapidly deploying solar.”

Last year China has invested $103 milliard in solar projects – more, than the USA ($44,1 billion), the Great Britain ($22,2 billion) and Japan ($36,3 billion) combined.

The prices lower through the competition between private firms for energy supply contracts.

Speaking of $30 per megawatt/hour for a solar energy, it is less than half of the figure for gas and coal, and at the same time greenhouse gas emitting reduces.

“Renewables are robustly entering the era of undercutting fossil fuel prices,” BNEF chairman Michael Liebreich is quoted by Bloomberg.

Solar energy is promoted for a number of reasons, including the equipment cost reduction, new business models introduction and a regulatory framework of clean energy development.

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