Solar Power Generation Might Change Current Energy Industrial Structure
Presently, Lazard Company has described the cost change of many kinds of power generation in its report. Solar farm has appeared the most price reduction since 2009, it reaches up to 86%. The electric cost which produces 1MW is the standard method to measure the power generation. According to Lazard’s measure, now the electric cost for solar power to generate 1MW is US$50, by comparison, the coal to generate 1MW need US$102, its cost is double the cost of solar power.
The Average Energy Cost in North America.
The analysis of Lazard Company is basing on the method of Leveling Cost of Electricity (LCOE), it is a total cost calculation method to estimate establishment and operate a solar farm.
The fast decreasing of solar pv generation has indicated the world power supply would have a great change. The price reduction may accelerate us to reduce the utilization of fossil energy, such as oil and coal, shifting to mostly exploit renewable energy, such as Wind energy and Solar Energy.
To change energy system, paying attention to the exploitation of cleaning energy, it is the unique method to slow down climate change, because the emission of fossil oil would cause more energy remaining in the Earth. However, analyzer already pointed out, the transformation of energy utilization method would be truly accelerated only if the cost of renewable energy is lower than traditional energy. While the cost of renewable energy might be decreasing.
Let us check which type of newly power generation having been increasing spread the globe, which is obvious to view the emerging of renewable energy. United Nations Environment Programme (UNEP) has found in a report, the power generation increase of solar energy has surpassed others energy types in 2017.
The Increase Situation of Global Net Power Generation.
In last year, including wind energy, hydropower and solar power, these renewable power supply has been 12% of global energy demand, to create a new history. According to UNEP’s report, only in 2017, solar PV generation industry had attracted investment for 160.8 billion dollar, having increased 18% when comparing with 2016.
Lazard point out, although the cost of solar PV generation is decreasing, renewable energy can’t solve all of problems. The LCOE’s analysis method don’t consider some external cost, such as storing solar power to be backup for rainy days, which is the biggest block to develop large-scale solar energy. (While, other electric source, such as coal or natural gas, don’t have this problem.)
In addition, the problem that solar energy is difficult to store has caused the developing Countries difficultly to completely utilize renewable energy system. This report explains, Countries might need to utilize the combination energy system of traditional energy and renewable energy before the improvement of battery technology and energy storage ability.
According to the data of US Solar Industrial Association, in United States, solar power just can meet 2% of national electric demand. But California is striving to change this situation, to do best to ask most of new housing to match solar panels.
Bingsolar Power, 4th, June, 2018
