Solar power has now reached grid parity in China, according to BNEF.
The capital expenditure (capex) of utility-scale solar (PV) plants in China has dropped 11% to $570,000 per MW in the last six months due to lack of new projects, a report by BloombergNEF (BNEF) revealed.
This puts the levelized costs (LCOE) of new solar plants in China below the average regulated coal power price, which is the reference price tag in the country.
“Weak demand for new plants in China has left developers and engineering, procurement and construction firms eager for business, and this has put pressure on capex,” noted BNEF.
BNEF’s global benchmark levelized cost of energy (LCOE) figures for onshore wind and PV projects financed in the last six months are at $47 and $51/MWh, down 6% and 11% respectively compared to the first half of 2019. For wind, this was mainly attributed to the fall in the prices of wind turbines, which is currently 7% lower on average globally compared to the end-2018.
Offshore wind also saw the fastest cost declines, shrinking 32% from just a year ago and 12% compared to the first half of 2019. BNEF’s current global benchmark LCOE estimate for offshore wind stands at $78/MWh.
