A4 Conference proceedings

Impact of Financing Cost on Global Grid-Parity Dynamics till 2030

Open Access publication

Publication Details
Authors: Gerlach Alexander, Werner Chris, Breyer Christian
Publication year: 2014
Language: English
Title of parent publication: EU PVSEC Proceedings
ISBN: 3-936338-34-5
JUFO-Level of this publication:
Open Access: Open Access publication

Grid-parity is a very important milestone for further photovoltaic (PV) diffusion. An updated grid-parity model is presented, which is based on levelized cost of electricity (LCOE) coupled with the experience curve approach. Relevant assumptions for the model are given and its key driving forces are discussed in detail. Results of the analysis are shown for 215 countries/ islands and a total of 645 market segments all over the world. High PV industry growth rates have enabled a fast reduction of LCOE. Depletion of fossil fuel resources and climate change mitigation forces societies to internalize these effects and pave the way for sustainable energy technologies. First grid-parity events have already occurred. The 2010s are characterized by ongoing grid-parity events throughout the most regions in the world, reaching an addressable market of up to 96% of total global electricity market till 2030. In consequence, new political frameworks for maximizing social benefits will be required. In parallel, PV industry tackle its next milestone, fuel-parity. In conclusion, PV is on the pathway to become a highly competitive energy technology.

Research Areas

Last updated on 2018-14-09 at 12:21