Farming News - Solar will be cheaper than gas by 2018
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Solar will be cheaper than gas by 2018
Earlier this month, renewables industry group Solar Trade Association (STA) published new analysis showing that the cost of generating electricity from a typical 10MW solar farm in the UK is set to fall faster than many think over the next few years.
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Based on a survey of solar providers, a report from STA suggested that – so long as there is still a supportive atmosphere in which solar can develop – green energy generation from solar power will be cheaper than burning gas as early as 2018.
The findings were published just days before a report to the government from the office of Chief Scientific Advisor Professor Sir Mark Walport, which suggested the government may be leading energy policy down an unsustainable and potentially dangerous path though its support for shale gas fracking.
Giving examples of other technologies which have been adopted too readily and have had devastating consequences, Prof Andrew Stirling of the University of Sussex, who wrote the fracking section of Prof Sir Walport's report – stated that that climate change could be effectively tackled with energy efficiency measures and a shift towards renewable technologies alone, but added that vested interests in the fossil fuel industry have consistently stood in the way of a smooth transition.
Commenting on the STA report, the Association's CEO Paul Barwell said, "A lot of people still don't realise just how close solar is to being competitive with gas-fired power generation. UK solar is on its way to becoming subsidy-free, but it is critical we maintain stable Government policy that supports grid connected utility-scale solar as opposed to fossil fuel power stations."
Whereas the cost of generating electricity from gas is forecast to rise in real terms, STA analysts claimed solar has the potential to become cheaper than the wholesale price of electricity in ten years' time (at some point between 2025 and 2028).
The estimates are more optimistic than the government's official figures – DECC doesn’t envisage solar becoming cheaper than gas before 2023 – though STA believes they are accurate, citing a report by the Centre for Economics and Business Research (Cebr), which found clear benefits of investing in solar in the UK.
However, the Government recently announced that it was going to close the current Renewables Obligation subsidy scheme for solar farms over 5 MW (about 25 acres), which STA claims will slow the falling cost of generating solar electricity on a big scale.
Paul Barwell continued, "It is clear that it makes political and economic sense for the Government to back large-scale solar, with the sector's track record in creating jobs, and producing ever cheaper zero carbon power. This report makes that case even more strongly - our updated costs forecast shows that solar is even cheaper than thought. We just need one final push from Government to get solar to being subsidy-free."
"It is in the interests of both energy bill payers and the planet to maintain stable support for good quality large-scale solar farms."