Solar

New gas generation capacity reaches 1.8 GW could be replaced by 1.7 GW of solar as part of a cleaner, 6.3 GW collection of renewables and energy storage facilities–and that alternative already comes in cheaper than the business-as-usual approach, according to the Carbon Tracker thinktank.

The cost of developing the 6.3 GW-capacity mix of clean energy assets Carbon Tracker estimated would be necessary to replace a 1.8 GW gas generation plant fell to the same price as the fossil fuel asset in 2020: £60/MWh (€69.93), according to a new report from the thinktank.

And solar would play a significant part in such a clean power portfolio at today’s prices, according to Carbon Tracker, with each 1.8 GW of new gas capacity planned by the U.K. government requiring 1.7 GW of solar panels as part of the alternative, non-fossil-fuel power mix. The clean energy portfolio modeled by Carbon Tracker included 1.7 GW of energy storage facilities–contributing half the overall cost, at today’s prices–with onshore wind generation, demand-response technology and energy efficiency investment completing the line-up.

The low, 11% capacity factor of solar the energy output actually delivered as a percentage of nameplate generation capacity–means PV would contribute around 26% of the electricity required to supplant a gas turbine, falling to 1% during periods of peak demand, based on an even mix of residential and industrial power consumers. During peak periods, the 27% year-round-average share of the burden provided by energy storage would rise to 39%, with demand-response’s contribution rising from 20% to 23%, as onshore wind falls from 18% to 10%. The energy efficiency investment opportunity offered by the U.K.’s aging housing stock means the contribution from that source–during the annual peak electricity demand periods, which occur in winter–would rise from 9% to 27%. However, the dismal failure of Westminster to deliver on its flagship green home improvement policy last year would cast significant doubt on the government’s ability to guide energy efficiency investment effectively.