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Solar Power Is Now The Cheapest Electricity In History, report by IEA (the International Energy Agency) says



 


Utility companies across the world that are looking for ways to build electricity can finally relax a bit knowing that solar energy has been identified as one of the cheapest source of electricity by IEA (the International Energy Agency). 


According to the agency, the easing out of several financing policies has been a major factor in making solar the cheapest form of electricity. Another contributing factor is easy access to finance. Whatever the reasons, there is no denying that these positive developments are set to make environment-friendly and renewable technologies back in the reckoning.

As per the observations made by Carbon Brief (CB), there could be an increase in the use of renewable in the form of four pathways until 2040. 


Also, according to IEA, the expected solar output will be 43 percent more in 2040 than previously imagined in 2018. This calculation is made by assuming solar power being cheaper by 20-30 percent than previously thought.

Even with the systematic decline in coal usage and increased use of renewable, IEA believes that it is difficult to predict the peak usage of global oil. 


However, a lot depends on the climatic action. It is also believed that by 2040, the demand for gas could increase by 30 percent. 


However, for this to happen, global warming responses need to be stepped up accordingly.


According to CB, for solar to be a cheap energy form, a lot depends on the proportion of financial figures with the corresponding solar output. 


To put in simple terms, investors are likely to get excellent deals when the cost of basic solar panels keep falling while solar technology keeps on improving.


In an earlier assumption made by IEA, the solar capital was expected to be anywhere between 7 and 8 percent of the total capital cost. 


However, this figure could vary in different regions, like 4.4-5.5 percent in China, 2.6-5 percent in the US and Europe, and 8.8-10 percent in India.

Though the calculation of solar power being 20-50 percent cheaper applies to companies and agencies that are involved in solar projects, even homeowners and general consumers can be happy with this fact. 


The deal is quite noteworthy given that a large portion of the earth still relies on gas and coal.

Every autumn, IEA comes up with interesting observations that are scrutinized heavily. 


These observations are made after relying on IEA’s own World Energy Model and hundreds of data points. 


Policymakers can use these observations to chart out their plans and shift their focus on an energy path that is efficient and sustainable at the same time. 


According to IEA, the current pandemic will give rise to unprecedented fallout that could see a sharp decline in the energy demand, with the largest hit reserved for fossil fuels.


With the cost of solar capital falling, investment confidence among people grows. 


And when you add low-cost financing options and tax incentives to the scheme, the deal sweetens considerably.

The calculations and projections made by IEA hold well not just for solar but also for other renewable forms, like nuclear. 

If increased availability and low cost continue, then solar could be in an excellent position in another 10 years!

 

Solar Power Is Now The Cheapest Electricity In History, report by IEA (the International Energy Agency) says Solar Power Is Now The Cheapest Electricity In History, report by IEA (the International Energy Agency) says Reviewed by Tim on December 01, 2020 Rating: 5

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