BEIS forecasts show costs of renewables continues to fall

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Mark
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BEIS forecasts show costs of renewables continues to fall

Post by Mark »

https://www.current-news.co.uk/news/new ... es-to-fall
https://www.gov.uk/government/publicati ... costs-2020
Costs of deploying renewable electricity generators continue to fall as new government statistics show dramatic cost reductions for solar and wind out to 2040. The Electricity Generation Costs document details forecasts for the levelised cost of energy (LCOE) across a number of electricity generation technologies. The most recent iteration – published yesterday (24 August 2020) – shows that the government expects large-scale solar PV to be developed at a LCOE of £44/MWh in 2025 in its central cost scenario, a significant drop when compared to its 2016 forecast, which placed solar at £68/MWh. Likewise, onshore wind has seen reductions from the 2016 forecast - £65/MWh – and now comes in at £46/MWh in 2025. Offshore wind, meanwhile, has seen the biggest drop, going from £106/MWh in the 2016 forecast to £57/MWh.

CCGT, on the other hand, is expected to cost £85/MWh, significantly higher than the renewable technologies. BEIS also commissioned Europe Economcis to updated its hurdle rate - the minimum financial return that a project developer requires over a project’s lifetime on a pre-tax real basis - assumptions for projects starting development from 2018, with solar updated to 5%, onshore wind 5.2% and offshore wind 6.3% compared to 7.5% for CCGT. Tom Edwards, senior modeller at Cornwall Insight, explained how the figures also show that hurdle rates for solar and wind have come down since the 2016 report, “while hurdle rates for traditional thermal technologies remain fairly static�. “This gives us a good indication that investors are getting more comfortable with these assets classes and are more willing to put their money behind them.�
Little John
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Post by Little John »

Corrected for you
Costs of deploying renewable electricity generators continue to fall as new government statistics predict dramatic cost reductions for solar and wind out to 2040
fuzzy
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Post by fuzzy »

And those who argue the free market mantra eg in electricity, ignore the vast gov planning and sunk costs by the CCP to allow us to buy solar cells, semiconductors, inverters etc at very low cost.

We knew how to grow semiconductor crystals in the 1950s. Now it's long gone.
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clv101
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Post by clv101 »

fuzzy wrote:And those who argue the free market mantra eg in electricity,
Are generally talking rubbish, energy is a hugely manipulated area. Massive tax breaks, military and geopolitics interests, subsidiaries all over from direct cash handouts to ignoring environmental externalities, there is nothing 'free market' about fossil fuel, nuclear, wind or solar.
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Mark
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Post by Mark »

Little John wrote:Corrected for you
Costs of deploying renewable electricity generators continue to fall as new government statistics predict dramatic cost reductions for solar and wind out to 2040
BEIS forecasts show costs of renewables continues to fall
For a change, why don't you try being a 'lover' rather than a 'hater' ?
You might find that you enjoy it.

We know that renewables also have their issues, but this is good news.
Any indicator going in the right direction should be enjoyed/celebrated...
kenneal - lagger
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Post by kenneal - lagger »

To be absolutely pedantic about it for all concerned, renewables costs are falling now and are predicted/forecast to fall even further in the future.

Yes, this is a good thing, Mark and LJ, and I celebrate it even if the whole f*****g market is skewed to buggery by all sorts of subsidies for all sorts of providers!
Action is the antidote to despair - Joan Baez
fuzzy
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Post by fuzzy »

I think we have passed the era of minimum prices. Food has never been cheaper, but all technical things have stopped competing on price and are now using extra gimmicks [eg cars], deliberate incompatability [IT] or legal restrictions [construction] to force higher sales prices. Anyone looked at prices for cars, bicycles, PCs, hifi etc nowadays? Anything that requires gurus by law, eg power etc, is going to be gouged. Our corrupt to the core county council has just spent £780000 building a right turn junction into a tiny rural village with no through road.
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