Utility-scale solar power is poised to become cost competitive with natural gas by 2025, according to a new report by Lux Research.
The report, “Cheap Natural Gas: Fracturing Dreams of a Solar Future,” evaluated the levelized cost of energy (LCOE) for unsubsidized solar, natural gas, and hybrid solar/gas technologies through 2030 under a range of future natural gas price scenarios and across 10 different parts of the world.
The bottom-up cost model assumed a 39% decrease in utility-scale system costs by 2030 and a delay in shale gas production due to anti-fracking policies in Europe and high capital costs in South America.
The key take-away: the LCOE for unsubsidized utility-scale solar globally will be only about $0.02/kWh above the price of power produced by combined cycle gas turbines by 2025.
