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Power Science Technology

World Energy Hits a Turning Point: Solar That's Cheaper Than Wind (bloomberg.com) 220

A transformation is happening in global energy markets that's worth noting as 2016 comes to an end: Solar power, for the first time, is becoming the cheapest form of new electricity. From a report on Bloomberg: This has happened in isolated projects in the past: an especially competitive auction in the Middle East, for example, resulting in record-cheap solar costs. But now unsubsidized solar is beginning to outcompete coal and natural gas on a larger scale, and notably, new solar projects in emerging markets are costing less to build than wind projects, according to fresh data from Bloomberg New Energy Finance. The chart shows the average cost of new wind and solar from 58 emerging-market economies, including China, India, and Brazil. While solar was bound to fall below wind eventually, given its steeper price declines, few predicted it would happen this soon.
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World Energy Hits a Turning Point: Solar That's Cheaper Than Wind

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  • A confused article (Score:3, Informative)

    by Mr D from 63 ( 3395377 ) on Friday December 16, 2016 @10:25AM (#53497207)
    Very confused author. He shows a chart of capacity costs, not actual production cost comparison, then he starts talking about contract prices, which are a very different thing altogether.
    • Re: (Score:2, Insightful)

      by tomhath ( 637240 )
      Exactly. Installed capacity doesn't mean anything. The article fails to mention actual cost per MWHr
      • Except where it mentions actual cost per MWHr. ' It started with a contract in January to produce electricity for $64 per megawatt-hour in India; then a deal in August pegging $29.10 per megawatt hour in Chile. '

        • by dj245 ( 732906 )

          Except where it mentions actual cost per MWHr. ' It started with a contract in January to produce electricity for $64 per megawatt-hour in India; then a deal in August pegging $29.10 per megawatt hour in Chile. '

          These production costs are huge. Prices in the Houston area wholesale are approximately $20-$25 per MW-h on any given day. And this is in a first world country with high labor costs and a high standard of safety.

          The google term you are looking for is "LMP map", which is a map showing the wholesale price of electricity. (LMP stands for Locational Marginal Pricing) Add the term "MISO" for the midwest, "ERCOT" for Texas, "PJM" for the eastern atlantic states, "ISO New England" for the northeast, etc.

          Ho

          • by Maury Markowitz ( 452832 ) on Friday December 16, 2016 @01:19PM (#53498545) Homepage

            > Wouldn't it make more sense to

            Ah yes, the "makes sense" clause, which in this case means "I have no clue but I'm going to post anyway".

            > shut the turbine down and spare the maintenance?

            No. The marginal production cost for wind is close to zero. As opposed to, say,a gas plant, where even at idle you're still burning fuel. This has been *repeatedly* covered here on Ars.

            > The answer is the subsidies.

            Maybe it's different in Texas, but everywhere I'm familiar with the subsidies are in the form of tax credits and are on the order of 20% of the LCoE. In comparison, something like the nuclear industry receives about 10 times that amount of money, all of it up-front, and still isn't competitive,

            Why is anyone surprised by this? A wind turbine is a generator, which all plants have, some blades, a steel pole, and a concrete base. Of course that is going to be able to compete once the learning curve kicks in. PV is even simpler, it's basically a storm window with some wiring. It doesn't even have moving parts. On a pure CAPEX basis there's no way anyone can compete.

          • by Muros ( 1167213 )

            Houston seems be benefitting from excess wind production in other areas of the state, many of which are at substantially negative cost. Why would anyone sell wind turbine power at negative cost? Wouldn't it make more sense to shut the turbine down and spare the maintenance? The answer is the subsidies. Many wind farms make much more from the subsidies than their actual function of providing power.

            Negative cost given the infrastructural investment, or negative cost compared to maintenance? If you've already paid for and built your turbines, some loss is still better than total loss.

      • by Rei ( 128717 )

        Are you picturing that solar plants have significantly non-capital costs for some reason?

        It's very easy to go from the capital costs and a capacity factor figure to the cost per MWh. And yes, ~$1.60/W is very competitive with fossil fuel generation. Just a fossil plant alone (which is a small fraction of the amortized costs - by far, most of the costs are fuel) costs nearly that much. They have higher capacity factors, and the ability to ramp makes their power more valuable, but it's not that much of a d

        • Also consider that wind has much higher O&M costs. Comparative lifespan & replacement cost is another key factor. Those are not insignificant differences.
  • Aren't emerging market needs by definition significantly less than highly-developed industrialized market needs?

    • by Muros ( 1167213 )

      I would guess the exact opposite. They have a much larger deficit in production, and need more both to bring them more inline with our consumption patterns, and also for construction of better infrastructure.

  • The only way Trump is going to restore millions of coal miner jobs is to bomb this solar and wind installations out of existence. Coal can't exist with cheaper alternatives. Damn free market capitalism!
    • by Fire_Wraith ( 1460385 ) on Friday December 16, 2016 @10:56AM (#53497433)
      Cheap Natural Gas is what killed coal, not regulations. There's almost nowhere in the country now that some other form of generation won't be cheaper than coal.
    • You're missing so very much.

      It's more than jobs - but the approach taken by the Democratic Party and many slashdotters of "eff" them.

      Now that the Democratic Party has abandoned labor (we're not talking about gov't unions here but the New Deal labor coalition) they felt that nobody was listening. All the Dems were doing were offering them welfare and some worthless "retraing"program.

      The final straw was when the Dem Party went against the pipelines and opposed fracking. That's jobs. It's not sendin
      • All the Dems were doing were offering them welfare and some worthless "retraing" program.

        George W. signed a $3,000 tax credit for adults to retrain for a different career after 9/11. I went back to community college to learn computer programming on that tax credit while working 60 hours a week as a video game tester. After I graduated with 4.0 GPA in my major, I went in IT support and pay more in taxes than I would if I haven't changed careers. I guess a retraining program isn't worthless if a Republican signs it into law.

        Trump promises jobs. Wall Street jobs.

        FTFY

        Not necessarily coal jobs.

        Tell that to the coal miners.

        • >Trump promises

          Any promises from him are worthless.

          • Any promises from him are worthless.

            Unless you're a member of The Friends of Putin Club.

          • Oh for the love of god why don't you never Trumpers and snowflakes give it a rest already. Its over, Trump won. Time to make the best of the situation and work to make it a better place.

            • Its over, Trump won.

              The Electoral College haven't voted yet.

              Time to make the best of the situation and work to make it a better place.

              But you need people to constantly remind Trump — and the Republicans riding the hems of his pants — memento mori ("remember that you have to die").

              Memento mori ("remember that you have to die") is a Latin expression, originating from a practice common in Ancient Rome; as a general came back victorious from a battle, and during his parade ("Triumph") received compliments and honors from the crowd of citizens, he ran the risk of falling victim to haughtiness and delusions of grandeur; to avoid it, a slave stationed behind him would say "Respice post te. Hominem te memento" ( "Look after you [to the time after your death] and remember you're [only] a man.").

              https://en.wikipedia.org/wiki/Memento_mori [wikipedia.org]

              • Give it a rest. You say asinine things in threads that have nothing to do with Trump or the election. Take it over to cnn or yahoo. Some us are tired of the constant whining showing up in these technical treads. At least stick your bitch'n to the political topics.

                • Some us are tired of the constant whining showing up in these technical treads.

                  Slashdot exists to keep me amuse while I'm waiting for a script to finish running at work. Thank you for your participation.

                  At least stick your bitch'n to the political topics.

                  The topic is coal. Nothing is more political than King Coal is in America. Especially since so many coal miners believe that Trump will bring back millions of lost jobs for a dying — and unprofitable — industry.

      • by dywolf ( 2673597 )

        you are an idiot.

      • by Copid ( 137416 ) on Friday December 16, 2016 @04:24PM (#53499925)
        A large chunk of the "no jobs" complaints are about the world economy moving on and leaving some people behind. Stuff gets automated. Trade happens. It's rough, and unless somebody has a brilliant solution the the displacements caused by those changes, it seems like retraining and a social safety net are about the best we can do.

        The Democrats don't have a better solution and they're not good at pretending to listen and pretending to have a solution. The Republicans don't have a solution, but they're masters at pretending they care and that they have an answer. Trump is going to wave his hands and make human labor more efficient than robots. He'll stop all of the cheap imports competing with US products and still keep prices at Wal Mart low. Sure, if they can just build that wall, the manufacturing and mining jobs in places where there are no Mexicans will come back. The robots will be put out to pasture and we'll start relying on human labor in manufacturing again.

        Well, he's 100% in charge now, so it will be interesting to see what happens. I wouldn't bet against the fundamental rules of economics, though. Those have a pretty solid winning record, especially when you compare it to the record of politicians promising jobs.
  • Say thanks to communist party for subsidising 60% of your next solar panel purchase.

  • Comment removed based on user account deletion
  • Subsidies for archaic expensive outmoded fossil fuels are the problem.

    No cost for pollution.

    Exemptions for older less efficient fossil fuel plants.

    Subsidies for fossil fuel extraction on public and private lands at rates often 1/1000th what they would be in a capitalist non-taxpayer-subsidized market.

    Exemptions from costs for oil spills and the ability to go bankrupt and let the taxpayer pay for the cleanup.

    In the last three months the total solar generation of power in the US has literally DOUBLED. Because

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