Solar Delivers Cheapest Electricity ‘Ever, Anywhere, By Any Technology’
Half the price of coal!
Chile has just contracted for the cheapest unsubsidized power plant in the world, Bloomberg New Energy Finance (BNEF) reports.
In last week’s energy auction, Chile accepted a bid from Spanish developerSolarpack Corp. Tecnologica for 120 megawatts of solar at the stunning price of $29.10 per megawatt-hour (2.91 cents per kilowatt-hour or kwh). This beats the 2.99 cents/kwh bid Dubai received recently for 800 megawatts. For context, the average residential price for electricity in the United States is 12 cents per kilowatt-hour.
“Solar power delivers cheapest unsubsidised electricity ever, anywhere, by any technology,” BNEF Chair Michael Liebreich said on Twitter after this contract was announced.
Carlos Finat, head of the Chilean Renewable Energies Association (ACERA) told Bloomberg that the auction is “a strong warning sign that the energy business continues on the transition path to renewable power and that companies should adapt quickly to this transition process.” Indeed, in the same auction, the price of coal power was nearly twice as high!
Grid-connected solar power on Chile has quadrupled since 2013. Total installed capacity exceeded 1,000 megawatts this year — the most by far in South America. Another 2,000 megawatts is under construction, and there are over 11,000 megawatts that are “RCA Approved” (i.e. have environmental permits).
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