Wood Mackenzie: More competitive photovoltaics than gas units internationally from 2023

Posted on June 11, 2019

Photovoltaics will be more competitive than gas plants almost all over the world by 2023, based on flattened costs, according to Wood Mackenzie's analysis.

As the lead analyst, Tom Hegarty, speaking at greentechmedia.com, new combined cycle stations remain competitive with new PV parks in many major markets today, such as China, Britain and Korea. However, this will come to an end from the beginning of the next decade, as equipment costs continue to decline and auctions are rising.

At the same time, the company expects China's retreat to PV plants last year no longer the importance it would have had earlier, as the industry is strengthening its presence across the globe. China's share of the world market will be 27% from 35% last year on the basis of forecasts.

Beyond that, Australia is described as a "sleeping giant", while the European market is showing signs of recovery: "We expect to see new auctions and more support measures in Europe, and PVs from energy communities are a very interesting sector and the barriers to bilateral contracts will be removed, "he said.

Finally, on the auctions, Hegarty underlined that they have led to "very aggressive" bids and the barriers to entry of the contestants are low. Competition means that winners at auctions usually have returns of 5-7%, which affects everyone in the value chain of this technology.

 

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