Fraunhofer ISE study shows the LCOE for PV is decreasing rapidly
Post date: 28/01/2014
A study from the Fraunhofer Institute for Solar Energy Systems ISE shows that the levelized cost of electricity (LCOE) for renewable energy power plants has decreased rapidly over the last few years and has even caught up with the generation costs from conventional power plants. Moreover, the researchers forecast that in Germany, the cost of producing electricity from PV and wind will be lower than the cost of producing electricity using fossil fuels by 2030.
For the study, researchers at Fraunhofer ISE compared the present costs for conversion of different energy forms into electricity and gave a prognosis for the further cost development up to 2030. The scientists analyzed both the LCOE from renewables as well as from conventional energy technologies.
With regard to PV, the scientists analyzed PV systems in Germany at locations with a global horizontal irradiance between 1,000 and 1,200 kWh/(m²a). The scientists found that cost-efficient open field PV plants installed during 2013 in southern Germany can achieve LCOE of about 0.08 euro per kWh (10.9¢). Even small rooftop PV systems in northern Germany produce electricity today for less than 0.14 euro per kWh and therefore lie well below the average electricity price of 0.29 euro per kWh for households.