Research shows price of solar electricity will drop by 2025
Studies found that solar and wind power could be the cheapest forms of energy production
A new study demonstrates that an energy system entirely based on renewable forms of energy will be economically practical in the future.
According to research at Lappeenranta University of Technology (LUT) it will be worthwhile for North-East Asia and China in particular to adopt a completely renewable energy system within 5-10 years.
Research completed by the Neo-Carbon Energy project finds that the price of solar electricity will drop by half between 2025−2030.
The study concluded that within ten years solar and wind power will be the cheapest forms of energy production for Asia's largest energy markets.
According to LUT Professor of Solar Economy Christian Breyer, this is because renewable energy is the cheapest way of producing energy in Asia.
Economic viability has been one of the challenges of making the transition to renewable energy sources while meeting the terms of the market. The research now performed shows that sun and wind will become viable sources of energy within 5-10 years as costs fall by 20% every time capacity is doubled.
Principal Scientist and LUT Adjunct Professor Pasi Vainikka says “This means, for example, that the price of solar electricity will be halved by 2025-2030. This will make them the cheapest forms of production for most of the world”.
Similar models of renewable energy have not been performed before. The Neo-Carbon Energy project will continue researching the opportunities and implementation of a similar energy systems in Finland.
The Neo-Carbon Energy research project is funded by Tekes and is being implemented as cooperation between LUT, VTT and the University of Turku. The research was recently selected as the best opening at a global solar energy conference in Japan.