The global solar headlines you need to know this week for your business decisions.
KPMG: Solar to be Cheaper Than Coal in India in 5 Years
A new report by KPMG India, a consultancy, assessing the country’s current solar push has concluded that PV will be 10% cheaper than coal in the country by 2020, with solar penetration rising to 5.7% of India’s energy mix by that date.
The report was commissioned by the Indian government ahead of an announcement that India will seek to spearhead a Global Solar Alliance of sun-rich countries. According to the KPMG report, with solar costs having reached a new low of INR 5/kWh ($0.08/kWh) in the latest rounds of the NTPC solar auction, India will see a levelized cost of electricity for solar dipping below costs for coal within five years. The report calculates that solar will cost an average of INR 4.20/kWh ($0.06/kWh) by 2020, and could cost as little as INR 3.59/kWh ($0.05/kWh) by 2025, reaching around 12.5 % of India’s energy generation mix by that date.
The bulk of this evolution will play out at utility scale, but disruption may arrive via the solar rooftop sector provided appropriately affordable storage technology is widely adopted and progressive solar policies are introduced.
Source: pv magazine
Brazil Approves 1.5 GW of New Solar and Wind Power
The construction of 53 new solar and wind farms has been approved by the Brazilian government in a clean energy push that will add around 1.5GW of renewable power capacity to the nation’s energy mix over the next few years. Contracts have been granted to clean energy developers to add 929.3MW of solar PV capacity between now and November 2018. Early estimations by the government reveal that companies involved in this clean power push will have to find investment of 6.8 billion reais (US$1.77 billion).
Brazil’s recent power auctions have been well received, and Friday’s auction saw contracts signed by many leading clean energy developers, including SunEdison and Portugal’s EDP Renovaveis. Solar power has been priced in the auction at between 290 Real (US$75.36) to 302 Real (US$78.48) per MWh. The ceiling price set at auction for solar was 381 Real/MWh. In August, the average winning price for solar projects at auction was 301.79 Real/MWh, which equated to $0.0842/kWh. This latest tender has lowered the price for solar once more, and is, according to officials, a realistic strike price.
Source: pv magazine
Honduras Adds 389MW of Solar So Far in 2015
Honduras has added 389MW of solar power projects so far in 2015 making it one of the biggest PV markets in Latin America. Plants commissioned include one larger than 100MW and another 61MW. Solar is the fastest growing power source in the nation, with less than 1MW connected in 2014, according to a report by the nation's National Electric Energy Company.
These completed PV plants in Honduras are part of 620MW of projects which are approved to begin operation by the end of next year. The biggest part of this capacity is located in the south of the nation, where there is better solar potential than in other regions. Among those which have been built is one project larger than 100 MW in the department of Nacaome. This also includes the 61 MW Aura Solar 2. The Honduran government introduced incentives for PV projects in 2013, including tax incentives.
Source: pv magazine
Australia’s Energy Storage Market to Hit 244MW Per Year by 2020
By 2020 Australia is forecast to be adding 244MW of storage capacity on a yearly basis, driven by its burgeoning PV industry, according to a new report from GTM Research. In monetary terms, the report predicts that what was an US$8 million market in 2013 will be worth US$448 million in five years’ time.
Of this total annual capacity figure, as much as 132MW is expected to be deployed behind the meter and paired with PV in homes. Residential storage will “explode” from 1.9MW deployed this year to 44MW in 2016, the report claims, with the above factors accelerated by big drops in the feed-in tariff (FiT) rates, or by FiT schemes closing early. The country has different FiT schemes for different regions.
The GTM report also said that commercial-scale storage, while not enjoying prospects for growth as strong as household, will nonetheless ramp up rapidly too. A combination of high demand charges and incentive schemes in South Australia would catalyse this market, from just 1.5MW this year to 23MW in 2016.