The global renewable energy market has been been undergoing a sort of upheaval. Well, not literally. It is actually going south. At this moment, Renewable Energy Generation Price has hit rock bottom due to the advent of several factors: better battery technology is one of them. That is the most important element for ensuring a continuity of supply drawn from weather dependent sources of energy like solar and wind. And it has of all a sudden Renewable Energy Generation Price become quite cost competitive in all senses.
The cost of building as well as operating an electricity plant has gone down by around 35 per cent since the first half of the year 2018, says an analysis by a well known research company BloombergNEF (BNEF). At around the same time, it has also dropped for offshore wind energy by 24 per cent. On shore wind as well as that of solar costs have fallen by 10 and 18 per cent, respectively, since the past year. Basically, over the past decade, there has been great improvement in the cost competitiveness of low carbon options. This has largely happened due to the advancements in technology and innovation, price competition, economies of scale, along with the manufacturing experience thus the lowering of Renewable Energy Generation Price.
Since the year 2010, the benchmark price for solar power generation has dropped by 84 per cent. On the other hand, offshore wind energy generation prices have gone south by more than half. Same with onshore wind energy, which has seen prices dropping by around 49 per cent. The price of lithium ion battery storage too has dropped by over three quarters since the year 2012.
Batteries have the ability to provide for covering peaks in demand and to bridge those periods when the wind is calm or when the sun is not that scorching. Till now, gas as well as coal fired power stations have largely filled the gaps. However, as battery storage increasingly gets added to solar and wind energy generation plants, it massively helps to maintain a continuous supply, helping lower the Renewable Energy Generation Price.