Historic-low interest rates will power ahead astonishing solar cost reductions

An Ieefa report has suggested the cost of generating electricity from solar will be near zero in the world’s sunniest regions by 2030-40 – despite what the naysayers at the International Energy Agency might think.

Solar would have displaced coal in India during the current crisis even without preferential treatment, according to the Ieefa report.

Image: gregroose/Pixabay

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From pv magazine International

U.S.-based energy transition thinktank the Institute for Energy Economics and Financial Analysis (Ieefa) has taken a swipe at intergovernmental peer the International Energy Agency (IEA) over the latter’s prediction the Covid-19 crisis will slow the dramatic cost reductions achieved by the solar industry.

Positing the argument that the final cost of solar energy depends on solar resource, the capital cost of generation facilities and the rate of return on finance, Ieefa’s Tim Buckley pointed out PV projects have continued to be deployed at scale during the global health crisis as finance interest rates have plunged to historic lows because central banks are attempting to propel all types of economic investment during the current shock.

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