New Energy Still The Best Buy
Solar PV, wind costs climbing, but still way cheaper than fossil fuel – report
Lameez Omarjee 12 May 2022 (FIN 24)
“Increasing commodity and freight prices are driving up the costs of solar PV and wind turbines, but these renewable energy generators are still more cost-competitive than fossil fuels like coal and gas…[According to the International Energy Agency (IEA) [Renewable Energy Market Update and outlook for 2022 and 2023,] prices of raw materials and freight costs have been rising since the start of 2021. By March 2022, the steel price increased by 50%, copper increased by 70% and aluminium doubled. Freight costs were five times higher than they were in 2021.
This means that the prices of wind turbines and solar PV modules or panels have had to increase - reversing the previous trend of declining prices…[Solar PV and wind prices are expected] to remain higher than pre-pandemic levels in 2022 and 2023…Rising freight costs are the main driver of higher wind prices, while solar PV increases are evenly split between freight and raw material costs…[But] higher prices of fossil fuels - natural gas, oil and coal - used in industrial processes and electricity supply to produce components in renewable energy technologies also drive costs…[and] renewable energy prices remain cost-competitive, as fossil fuel prices have risen at a much faster pace…
…[Also,] residential and commercial users of solar PV have managed to reduce their electricity bills…[Renewable energy capacity is expected] to increase by 8% in 2022 and reach almost 320 GW. Solar PV is projected to be the front-running technology, accounting for 60% of global renewable capacity…The outlook for renewable energy deployment in 2023 depends heavily on the policy environment…[Russia's invasion of Ukraine] sparked a new urgency among some countries - especially the EU - to secure energy by transitioning clean generation while reducing dependence on fossil fuels from Russia…” click here for more