Solar power will become cheaper than gas already by 2023

Experts from energy consulting company Wood Mackenzie assessed the prospects of the two most important balance energies. Unfortunately, the cheaper does not mean that the provision of solar energy will improve.

New power plant running on natural gas, can compete with solar in a number of major markets — China, USA or South Korea. But in the early 2020s, the situation will change when the cost of equipment will fall and increase the number of competitive bidding, says GTM with reference to the report of the experts Wood Mackenzie.

“We believe that by 2023, solar energy will cheaper gas worldwide,” said Tom Haggerty, a senior analyst at Wood Mackenzie Power & Renewables summit in the United States.

However, the forecast for solar energy is not straightforward. In 2018 the industry is not able to overcome a projected $ 100 GWh, mainly due to the reduction in the rate of development of the industry in China and India. Slip has led to the fact that at the end of last year for the first time the price of solar electricity at the auction is not decreased to the next record.

However, the slowdown of a single market — even the Chinese — are becoming less important, if the worldwide industry is growing. China’s share of global solar energy in 2018 was 35% but for the period from 2019 to 2024 will be reduced to 27%.

For Europe, 2019 will be an important year, when the EU formally approved plans to reduce emissions and transition to renewable energy, and will also need to develop a detailed program to achieve these goals. Analysts predict that the EU governments will facilitate corporate purchasing of renewable energy. In addition, significant growth is expected in Australia and Saudi Arabia.

At the beginning of the year, analysts IHS, Markit released a report that forecast to 2019 the growth of the total capacity of solar PV installations at 500 MW, compared with last year. “Solar Renaissance” will lead to upgrade outdated infrastructure, and the first to feel the effect Europe.

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