The future of energy: Large-scale solar worldwide

Solar_Reserve_project

Not just good for the planet, large-scale solar is now often the cheapest option. Lance Turner looks at some of the impressive projects powering up right now.

As the world’s governments slowly wake up to the reality of climate change and the need to shift energy generation away from fossil fuels to renewables, the corporate world is just getting on and doing it.

Large-scale wind farms have become common, but large-scale solar farms are less so. However, this seems to be changing, with multi-megawatt and even gigawatt-scale solar generation plants being developed at a considerable pace.

Cheaper than the fossils
The main driver behind this seems to be that solar has actually become one of the cheapest forms of energy generation. In many cases, solar plants are proving to be cheaper than gas, nuclear and even coal-fired power plants, especially when the complete life cycle and environmental factors are taken into account. Indeed, recent tenders in both Chile and India for energy generation have been won by solar because it was the cheapest option. The Chilean auction was open to all technologies, yet solar won the majority of the generation contracts, with other renewables taking the rest. Not a single megawatt of generation capacity went to fossil fuel projects. Further, the auction produced the lowest ever price for unsubsidised solar at just US 6.5 c/kWh!

The huge US renewable energy development company SunEdison won the entire 500 MW of solar capacity on auction in the Indian state of Andhra Pradesh with a record low unsubsidised tariff for India of 4.63 rupee/kWh (US 7.1 c/kWh)—lower than new coal generation, particularly when using imported coal.

It’s not just in the developing world that solar is beating fossil fuels. In October, an auction in Austin, Texas, resulted in 300 MW of large-scale solar PV being contracted at less than US 4 c/kWh. Even before tax credits, the price is still under US 6 c/kWh—beating gas and new coal plants.

While many of these contracts involved photovoltaics, other forms of solar generation such as concentrated solar thermal systems also fared well, gaining some contracts and producing prices under US 10 c/kWh.

Read the full article in ReNew 134.

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