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News Article

Solar, Onshore Wind and Storage Get Cheaper: BNEF

By Cas Biekmann | Thu, 04/30/2020 - 16:09

Reports from BloombergNEF show that renewable energy keeps getting cheaper for a variety of reasons. Increased energy prices at home prove to be problematic in some countries, as CFE takes measures to ensure this is not the case in Mexico. Despite clearer skies being reported globally, Mexico City maintains high levels of air pollution. In other news, Iberdrola flaunts record investments and higher profits and options for renewable energy storage are examined.

Read it all in your weekly energy roundup!

 

Solar, Onshore Wind and Storage Costing less: BNEF

As reported by Renewable Energy Now, BloombergNEF analyzed that solar and onshore wind projects currently have the lowest levelized costs of electricity (LCOE) out of all newly built generation projects. This is the case for at least two-thirds of the world’s population. One factor is cheaper battery storage. Large-scale projects further add to a lower LCOE, said Tifenn Brandily: “Our analysis also suggests that since 2016, auctions are forcing developers to realize cost savings by scaling up project size and portfolios. Larger scale enables them to slash balance-of-plant, operations and maintenance expenses and have a stronger negotiating position when ordering equipment.” 

Could Higher Energy Use at Home Become a Problem?

Increased domestic energy use during COVID-19 times has several implications as working from home and seeking entertainment means constantly plugging in and charging laptops and cellphones, among other equipment. While an increase in energy use of around 6 percent in the domestic sector can increase the energy bill too much in financially stringent times, Mexico’s CFE is doing its best not to raise costs and keep energy users in their current bracket. 

Mexico City Stays Polluted

Improvement of air quality is one of the silver linings that COVID-19 lockdowns have had all over the world. Nevertheless, Mexico City has not seen air quality improvements, reports Reuters. Diesel generators, garbage dumps and forest fires contribute to the city’s air polluted state. Adding lower oil prices to the mix might push back the goal of clearer skies for the city in the near future. Nonetheless, fossil fuel companies are diversifying their portfolios with renewable energy projects and Mexico City is on its way to include solar panels to its energy mix. Even though Mexico City’s smog remains, clearer skies could still lie ahead. 

Options Needed for Renewable Energy Storage

Renewable energies such as wind and solar are the solution if the world wants to collectively lower its CO2 emissions. As sun and wind are simply not available 24/7, long term storage is needed to breach the gaps. Newer developments consist of various technologies, although the expensive standard of lithium-ion batteries is predicted to drop in costs over time, while increasing storage capabilities, reports Bloomberg.

 

The data used in this article was sourced from:  
Green Tech Media, El Universal, NREL, Reuters, BloombergNEF
Photo by:   Pixabay
Cas Biekmann Cas Biekmann Journalist and Industry Analyst