The Levelized Cost of Electricity (LCOE) of utility-scale solar PV and onshore wind have dropped down so extremely that they become the cheapest new-build power generation source for two-thirds of the world population, now. Those two-thirds live in locations that comprise 71% of gross domestic product and 85% of energy generation.
According to the latest analysis by Bloomberg NEF (BNEF), the LCOE of solar PV and Wind has fallen 4% and 9% since the second half of 2019 – to $50 and $44/MWh, respectively. The benchmark LCOE for battery storage has reached $150 per MWh.
The major contributors to the reduction of solar’s LCOE are the momentum of new PV manufacturing technologies, intense competition in auctions which resulted in the reduction of the balance of system (BOS) and the operating and maintenance (O&M) costs.
What is LCOE?
LCOE is a calculated measure of the costs of a power system that allows policymakers & researchers to compare various methods of electricity generation on a consistent basis. It is an economic assessment of the average total cost to build and operate a power-generating asset over its lifetime divided by the total energy output of the asset over that lifetime.
Source:@Blommbergnef & @Solar_Edition
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