New collaborative research between Lawrence Berkeley National Laboratory and Stony Brook University researchers shines a light on how dramatically renewable energy and storage prices have fallen recently. The figures are quite shocking. Between 2010 and 2018, the global weighted-average levelized costs of electricity regarding utility-scale onshore wind, solar panels, and battery storage have fallen by 35%, 77%, and 85%, respectively.
The reduction has happened so quickly that even analysis by widely cited references – such as the U.S. government’s International Energy Outlook and the International Energy Agency’s World Energy Outlook – are outdated because everyone has underestimated clean energy development. Meaning, there is a mismatch between real-world project economics and projections – hence why the new research. The team instead used SWITCH-China – an optimization model originally developed at the University of California-Berkeley – in their analysis to determine how different renewable energy cost scenarios affect future deployment.
China was the focus of the study because it’s the largest greenhouse gas emitter, naturally so, seeing as it’s building more power plants than any other country on the planet. Its decarbonization is, therefore, of the utmost importance in our fight against climate change. Fortunately for the nation, the plummeting prices of wind, solar, and energy storage have reached a point that building clean power is now a lot cheaper than building fossil fuels.
The research shows that China could reliably run its grid on at least 62% non-fossil electricity generation, while cutting costs 11% compared to a business-as-usual approach, by as soon as 2030! Although, the only smart policy will make the grand transition to a low-carbon electricity future possible. But what’s holding the government back now? Clean air and long-term sustainable economic growth are right around the corner at a bargain price!
This trend mirrors a widely reported modeling – issued by the Goldman School of Public Policy at the University of California, Berkeley – showing the United States can reach 90% clean energy by 2035. The transition wouldn’t raise customer costs at all from today’s levels, and would even decrease wholesale power costs 10%. Furthermore, about 9 million new jobs would be created in the energy sector during the period – which is 530,000 more jobs per year compared to business-as-usual. Government policy will be necessary here, too, however.
And let’s not forget that clean electricity would provide massive public health benefits alongside all the sustained economic growth, wherever it happens in the world. Thousands of lives would be saved. Decarbonization is paramount for our well-being and safety. Human-induced climate change is already destroying communities through excessive heat and extreme weather. The brighter, cleaner future lies in what we let happen next.
