, Singapore

Onshore wind and solar are now cheaper than coal: report

Policy revisions in China have affected the costs of new PV installations.

Unsubsidised onshore wind and solar have replaced coal as the cheapest power sources in almost all of the world’s major economies, including India and China, but excluding Japan, BloombergNEF revealed.

The firm’s analysis of the levelised costs of electricity (LCOE) for H2 2018 showed that the benchmark global levelised cost for onshore wind sits at $52/MWh, down 6% from H1 2018. Moreover, onshore wind is now as cheap as $27/MWh in India and Texas, without subsidy.

Meanwhile, the benchmark global levelised cost of new PV (non-tracking) dropped 13% to $60/MWh. This was mostly due to policy revisions in China that caused the utility-scale PV market to contract in Q3.

In India, solar and wind plants are now half the cost of new coal plants, BNEF added.

Meanwhile, higher interest rates in China and the US over the past two years have raised financing costs for PV and wind, but these were offset by lower equipment costs.

Other power sources like gas could not match to the low costs of solar and gas, no thanks to expensive gas imports. The levelised cost of new-build combined-cycle gas plants at $70-117/MWh are less competitive than new coal-fired power costs at $59-81/MWh.

Notably, batteries that are co-located with either PV or wind are becoming more common. According to BNEF, new-build solar and wind paired with four-hour batteries present dispatchable generation sources in Australia and India that are cost competitive and without subsidy.

BNEF’s H2 2018 LCOE analysis covers nearly 7,000 projects across 20 technologies and 46 countries globally. 

Join Asian Power community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

India’s Rajasthan and Gujarat need policy reforms to fuel RE transition
Some steps they could take are implementing green tariffs and setting infrastructure funds.
Global clean energy tech market to hit $2t by 2035
This is fuelled by investments as countries aim to enhance energy security.The global clean energy technology market is projected to grow from $700b in 2023 to over $2t by 2035, nearing the scale of the crude oil market, according to the International Energy Agency (IEA).This growth is fuelled by significant investments in clean technology manufacturing as countries aim to enhance energy security, maintain economic competitiveness, and cut emissions. Investment is concentrated in regions with established positions in clean energy, particularly China, the European Union, the UK, and increasingly, India.Whilst the US, EU, and India have taken measures to support their clean energy sectors, China is expected to remain the world's manufacturing hub. By 2035, China's clean technology exports are forecasted to exceed $340b—comparable to projected oil export revenues from Saudi Arabia and the UAE.Southeast Asia, Latin America, and Africa contribute less than 5% of global cleantech production value, yet the IEA suggests that these areas still hold opportunities within the clean energy economy. Developing economies, for instance, could leverage competitive advantages to advance in the value chain beyond resource extraction.The IEA said Southeast Asia could become one of the most cost-effective regions for producing polysilicon and wafers for solar panels over the next decade.

Exclusives

Coal-dependent ASEAN told to scale up RE generation
A regional power grid could help governments in their renewable energy transition.
Indonesia told to tap communities in clean energy transition
Solar and wind power managed by villages could generate 96 million jobs over 25 years.
Indonesia to add 90 MW geothermal capacity
Three power plants in West and East Java and North Sumatra will start operating this year.