A new study by Fraunhofer Institute for Solar Energy Systems (ISE) shows that photovoltaic (PV) systems now generate electricity at much lower costs than coal or gas-fired power plants, even when paired with battery storage. Ground-mounted PV systems and onshore wind turbines are the most cost-effective, with electricity generation costs ranging from 4.1 to 9.2 euro cents per KWh. By comparison, the levelized cost of electricity (LCOE) for PV battery systems varies between 6.0 and 22.5 euro cents per KWh, due to differences in battery costs and system location. The study also explores new technologies like agrivoltaics and hydrogen power plants, projecting significant cost reductions for wind and solar by 2045, with ground-mounted PV costs potentially falling as low as 3.1 euro cents. However, flexible power plants, such as hydrogen and biomass, remain costlier but essential for grid balancing in a renewable energy-dominated future.
Fraunhofer ISE: Solar outperforms fossil fuels
Ground-mounted PV systems and onshore wind turbines offer the lowest electricity generation costs, ranging from 4.1 to 9.2 euro cents per kWh. (Image Source: Fraunhofer ISE)
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Aiko and ACAP’s innovation addresses efficiency challenges in PV by transforming high-energy photons into multiple electrons. (Image Source: Aiko)
Pennsylvania’s solar pipeline includes 9 farms under construction and 480 queued projects, showcasing its renewable potential. (Image Source: Landgate)
CEC’s new assurance role includes forming a manufacturer working group and transparent reporting for industry progress. (Image Credit/Source: Kindel Media/Pexels)