IBTimes – According to the report released by WEF (World Economic Forum), The cost of production of electricity through utilization of solar energy is outpacing other alternatives as the cost accrued in investing in the installation of solar panels is turning out to be comparatively cheaper than a comparable investment in coal, natural gas or other options.
In more than 30 countries, electricity produced through solar and wind energy is the same price or cheaper than any new fossil fuel capacity, the report noted.
“Renewable energy has reached a tipping point–it now constitutes the best chance to reverse global warming. … It is not only a commercially viable option, but an outright compelling investment opportunity with long-term, stable, inflation-protected returns,” Michael Drexler, who leads infrastructure and development investing at the WEF, said in a statement.
A major developmental milestone for this rapid breakthrough came earlier this year when it was concluded that solar energy is outpacing wind energy as the most competitive in terms of cost. The cost of solar energy in 58 lower-income countries — including China, Brazil and India — has fallen to about a third of their respective levels in 2010 and is now becoming cheaper than wind energy, according to data produced by Bloomberg New Energy Finance (BNEF).
The other major development was announced in a report by Lazard, an investment bank and research firm that assesses the total “levelized cost of energy” (LCOE) of various sources. LCOE is measured in $/MWh units.
The significant conclusion of the report notes that “utility-scale, thin-film solar PV plants produce cheaper power, on average, than new natural gas plants.”