News & Updates

Falling costs earn solar a larger share of global energy mix

Falling costs earn solar a larger share of global energy mix

By 2040, the costs of solar PV generation per MWh will fall by a steep 60 percent, making solar one of the world’s cheapest forms of energy, according to a recent report by Bloomberg. The New Energy Outlook 2016 is Bloomberg New Energy Finance’s annual long-term view of the world’s power markets. According to the report, the increasing affordability of solar power in the coming years will lead to huge investments in renewable energy, accounting for 43 percent of all new power generation added between now and 2040. The result: by that year solar will have a 15 percent share of the entire global energy mix compared with 1.2 percent at the end of 2015.

“The renewable energy transition is well underway, with solar playing a key role,” commented Adnan Amin, Director General of the International Renewable Energy Agency. “Cost reductions, in combination with other enabling factors, can create a dramatic expansion of solar power globally.” Smart grids and innovative storage technologies will encourage further use of solar power, he added.

FIT 4 contract offers coming soon

Ontario’s Independent Electricity System Operator (IESO) is currently evaluating eligible FIT 4 applications. More than 96 percent of the complete and eligible applications are for Solar PV projects. In Q4 2015, a significant number of FIT 4 applications to the IESO were submitted by entities controlled by Solar Flow Through Limited Partnerships including the 2014 LP, 2013 LP, and the 2015 LP. The IESO expects to have contract offers in the coming weeks.

Concurrently, the IESO is also planning the upcoming FIT 5 procurement with a target of at least 150 MW. The FIT 5 application window will open in November 2016. In its latest 18 Month Outlook report, the IESO states renewable energy installations are having a positive impact on the province’s power grid.

“Growth in embedded solar and wind generation capacity and on-going conservation initiatives reduce the need for energy from the bulk power system, while also putting downward pressure on the peak electricity demands,” stated the report.