According to the World Economic Forum, solar power has officially become the cheapest source for new energy, beating fossil fuel.

The Bloomberg New Energy Finance (BNEF) also shows a drop in prices for solar power. According to the report, the mean price for solar power in around 60 countries dropped to $1.65 million per megawatt.

Closely following it is wind as the source of power, at $1.66 million per megawatt.

Remarks

According to Michael Drexler, Head of Long Term Investing, Infrastructure and Development at the World Economic Forum, the drop in prices are an encouraging sign:

“Renewable energy has reached a tipping point—it now constitutes the best chance to reverse global warming. Solar and wind have just become very competitive, and costs continue to fall. It is not only a commercially viable option, but an outright compelling investment opportunity with long-term, stable, inflation-protected returns.”

According to the US Energy Information Administration, approximately “9.5 gigawatts of solar capacity was added to the country’s grid,” which means it is the top energy source for the country in 2016.

“Solar investment has gone from nothing…five years ago to quite a lot,” Ethan Zindler, analyst for BNEF, told Bloomberg in an interview.

Zindler attributed the decrease of prices to China’s massive deployment of solar projects and its assistance to help other countries finance their own solar projects.

Cleaner Energy

“Solar and onshore wind have historically accounted for the majority of clean energy investment globally and their shares have grown substantially in recent years. Together, these technologies accounted for 65% of new clean energy investment in 2011. By 2015, that had risen to 94%,” BNEF said.

Solar has seen increasingly large investments, from 8% in 2011 to over 46% in 2015, according to the BNEF report.

In January, one contract in India set the price at $64 per megawatt hour. In Chile, another contract set the price at just $29.10 per megawatt hour.

“That’s record-cheap electricity — roughly half the price of competing coal power,” BNEF stated.

SHARE
Previous articleStates are beginning to file for a Recount
Next articleStudy Discovers Link between Expensive and Cheap Placebos to Effectivenes
Ann McDonald
Ann McDonald is a journalist who has worked for some of the reputed print and electronic media house in the country. She is a regular contributor to us and her articles are informative and uphold the view pint of contending parties. She specializes in issues about social justice, race and faith and has reported about the sectarian violence which has erupted regularly around the world. Humanitarian issues and cases of human rights violation are close to her heart and she has a tenacity to follow up all her news stories to their logical end. She has been awarded with various awards for her reporting.

LEAVE A REPLY