Solar energy becomes more competitive than wind energy

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It was the first time that emerging market nations have invested more in solar energy than in developed nations, according to a report

The solar energy costs without subsidy are beginning to compete with coal and natural gas and new solar projects in emerging markets have shown cost less to build than wind turbines, according to new report from Bloomberg New Energy Finance ( BNEF) .

The study, which includes the average cost of wind and solar energy from 58 emerging economies, including Brazil, China and India, determined that even if the expectation for the cost of solar energy eventually dropped compared to wind power, the steeper declines Stimulated this to happen much faster than analysts thought was possible.

The  latest edition of the BNEF Climatescope concluded that falling costs of solar equipment are driving the growth in new solar installations. The investment in solar energy in the 58 emerging countries rose 43%, about $ 72 billion in 2015.

By the end of 2016, the amount of solar power plants globally must exceed the number of wind energy facilities for the first time, the report concluded. Projections estimate that 70 gigawatts of new photovoltaic solar energy will be installed in 2016 compared to 59GW of wind power. 

“Investments in solar energy have gone out of nowhere – literally nothing – for a long time,” said Ethan Zindler, a policy analyst at the BNEF in a statement. “A large part of this story is China, which has been devoting itself rapidly to solar energy,” and helping other countries finance their own projects. 

Climatescope is a clean energy competitiveness index supported by the governments of the United States and the United Kingdom. It provides a general picture of clean energy activity in 58 emerging markets in Africa, Asia, Latin America and the Caribbean. The group includes large developing nations such as China, India, Egypt, Pakistan, Brazil, Chile, Mexico, Kenya, Tanzania and South Africa, as well as dozens of other countries. 

By 2015, emerging economies in the Climascope report set a new record for clean energy installations with 69.8 GW of new energy, 30% more than the 48.4 GW added in 2014. The total for 2015 represents 10.6 GW more than the 59.2 GW of clean energy built in a group of countries that includes the richest nations in the world such as the US, UK and Germany. 

It was the first time that emerging-market nations have invested more in solar energy than in developed nations, the BNEF said.

Since 2010, photovoltaic investment in Climatescope countries has grown more than 11 times. And from 2014 to 2015, investment in solar energy in those countries grew 16% to reach $ 154 billion. In addition, investment in clean energy generation in Climatescope countries last year outpaced global investment in thermal power generation worldwide, as recorded by the International Energy Agency.

“Solar and wind energy have historically been responsible for most of the clean energy investment around the world and their actions have grown substantially in recent years. Together these technologies accounted for 65% of the new clean energy investment in 2011. By 2015 , This number has risen to 94%, “the BNEF said.

Solar energy saw the highest growth in investment, from 8% in 2011 to just over 46% in 2015, according to the report.

In all emerging markets, when private energy companies competed for massive contracts to provide electricity, new records were established for cheap solar energy.

In January, for example, a massive contract in India fixed the price per megawatt hour at $ 64. In August, another supply contract fixed the price at $ 29.10 per megawatt hour in Chile, according to BNEF.

“This is a record of cheap electricity – about half the price of competing coal power,” the BNEF said in a statement.

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