Solar Generation Costs on Track to Achieve Grid Parity

[ElectricGrid]

Levelized Capital Costs


The concept of levelized costs is a very simple premise. Since solar photovoltaic and thermal generation does not involve the use of any fuel other than sunlight, the cost of generation consists mostly of capital costs with minor operational and maintenance cost (Wikipedia.org, 2008). The property, plant, and equipment (PP&E) can be amortized over time to yield a fixed cost of generation, assuming the transmissions and distribution costs are the same for all forms of electrical generation.

For example, the levelized cost of solar photovoltaic generation is estimated to be $0.25-$0.35 per kilowatt-hour (kwh) (Sunpower, 2008). The cost of solar thermal generation is estimated to be less than $0.18 per kwh (CNET / Kanellos, 2007) today with estimates for future production at $0.10 / kwh (Khosla Ventures / Ausra, 2008).


On the other hand, the costs of fossil-fuel based electric generation derived from a coal-fired power plant or a natural gas fired turbine are unlevelized because they are dependent upon fluctuating, and mostly increasing coal and natural gas commodity costs.




http://seekingalpha.com/article/92708-solar-generation-costs-on-track-to-achieve-grid-parity

[FogerRox]

1. In NJ its been reported that a new nuclear plant would cost 15 to 20 Billion

At that point PV panels are more than competitive.

[Massacure]

2. Yes, but estimates are just that: estimates

The price of steel, concrete, other material prices, and even labor fluctuate.

[NNadir]

3. Really?

They have an economical way to store sunlight in New Jersey?

I live here, and I have the distinct impression that the sun goes down every night here.

I could be wrong about that, but it seems to be my impression.

Personally, I could do without 50 brazillion batteries littering the landscape here.

In any case, the 50 brazillion posts about how solar energy is going to be competitive with dangerous natural gas over the last half a decade or so on this site are all full of shit.

http://www.solarbuzz.com/

For the entire time this wishful thinking bullshit song has been going on on this website, the price of solar electricity has been well over it's historic lows from 5 years ago.

Solar PV electricity is very unlikely to be anything but a trivial source of energy - just as it has been through 50 years of hype. It is also extremely unreliable. And the fact that the solar waste problem - which is nearly identical with other forms of electronic waste - is missed has to do with the fact that the solar industry has never produced on an exajoule scale.

And speaking of price at $4.83 "watt" where the quotations refer to the fact that what is really being discussed is peak watts - given that solar cells operate at best at 20% of capacity utilization - the cost of a solar plant equivalent to a 1000 MWe nuclear plant in terms of energy produced is about $24 billion dollars - and that ain't counting the cost of batteries.

As for the 15 billion dollar figure for a nuclear plant - it's bullshit scare tactics. But even if it were true, for 30 billion dollars we could completely outstrip the entire solar energy capacity of the entire United States by building just two nuclear plants.