Renewable energies can cost the same and even less than fossil options, points out the latest report from the UK’s Department of Industrial and Business Strategy (BEIS). The study highlights wind and solar energy as the best investment for the future.
For many years, it was said that such alternatives were sustainable, but much more expensive than fossil energy sources. However, its cost has been gradually reduced and this statement has now become obsolete. In 2016, renewable energies were 23% cheaper than in 2013; now the difference is even bigger: 47% compared to 2016.
To analyze different energy sources, BEIS used the average value per megawatt over the life of a project as a base. The results indicate that, for a wind farm, the estimated operating costs will reach 46 pounds per megawatt in 2025 against 65 pounds in the previous study.
For a large solar farm, the cost is 44 pounds. In the analysis carried out in 2016, this amount reached 67 pounds. When we bring gas and nuclear thermal plants to the conversation, the difference is stark: 102 pounds and 85 pounds per megawatt, respectively.
Energy matrix in Brazil
With these forecasts, in just 5 years, a wind or solar farm will be able to generate energy at half the cost of a gas thermal. “Renewable energies will be the most competitive going forward”, points out Antonio Bastos Filho, CEO of Omega Geração, the largest operator of wind farms in Brazil.
The executive also states that, in this scenario, the country has strategic advantages due to its predominantly hydraulic matrix and the best wind regime in the world. He explains that hydroelectric plants can be used as a kind of battery, storing the energy produced by the sun and the winds, enhancing the renewal of our energy matrix.