07
2023
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08
The cost gap between solar and wind energy is gradually decreasing
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According to the Sydney Morning Herald, in terms of unit capacity, the cost of solar modules was lower than that of wind energy for the first time in certain global markets last year, and the gap in power generation costs between the two is gradually decreasing.
According to the Sydney Morning Herald, in terms of unit capacity, the cost of solar modules was lower than that of wind energy for the first time in certain global markets last year, and the gap in power generation costs between the two is gradually decreasing.
Except for a few countries such as Germany, where solar energy is widely developed, wind energy is still an alternative energy source beyond oil, coal, and natural gas. But this situation will change, considering the expected contraction in the wind power market, the global total installed capacity of solar energy is expected to surpass that of wind energy for the first time this year.
Due to the current higher production efficiency and lower installation costs of wind power, its overall cost is still lower than that of solar power generation. However, on the other hand, the continuous decline in the price of solar power generation equipment is rapidly narrowing the gap between the two.
In fact, both wind and solar industries are striving to overcome overcapacity, but the two industries have taken different approaches. In the field of solar power generation, overcapacity is largely caused by the global commodification of finished components, which has led to corporate bankruptcy and a significant decline in the prices of solar components. In the wind power sector, overcapacity is mainly caused by subsidy cuts and reduced demand in Western markets, coupled with competition from the United States for low-cost natural gas.
The sales of wind turbines rely on local services and have not yet been commercialized. The global market is mainly monopolized by Vestas, General Electric, and Siemens. Overcapacity has led to various companies launching cost reduction strategies, but wind power prices remain stable.
The latest manufacturing data shows that in some markets, the average selling price per watt of solar power is already lower than the price per watt of wind power. For example, a report from Vestas shows that the average selling price of wind power in the first quarter of this year was $1.34 per watt, compared to last year's solar power prices of $0.7 to $0.8 per watt. (1 USD is approximately 6.14 RMB)
The short-term price trajectory of wind and solar power indicates that although much slower than before, the prices of solar modules will continue to decline, while the prices of wind turbines will remain flat. Moreover, due to the much larger volume of wind turbines, their installation cost per watt is also lower than that of solar modules. The recent report of the Global Wind Energy Council states that the installation cost of wind turbines is approximately $1.61 per watt.
It is difficult to calculate the installation cost of solar projects on a public utility scale. The UK Department of Energy and Climate Change pointed out that as of March last year, the overall installation cost of a 250 kilowatt solar photovoltaic power project could be as low as $1.83 per watt.
Although the overall energy cost of wind energy is relatively low, solar energy is catching up and this year's new installed capacity of solar energy will surpass that of wind energy for the first time. Last year, the global installed capacity of wind energy was 48 billion watts, but due to a decrease in orders in 2012, independent research institutions in the industry predict that the installed capacity of wind energy will decrease to 39 billion watts this year.
According to the prediction of the European Photovoltaic Industry Association, the global solar installed capacity last year was 31.1 billion watts, and the association predicts that the installed capacity this year will be approximately 280-47 billion watts. However, regardless of the method used, the solar energy market is expected to surpass the wind energy market in the next decade. (People's Daily)
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