French consultancy sees solar power grid parity in 15 countries

Solar power has reached grid parity in Chile and fourteen other countries around the world, French innovation and new business consulting firm Alcimed says in a new publication.

Chile, where solar insolation hits 3400 kWh/m²/year, has already seen two large projects -- the 70 MW Salvador of SunPower Corp (NASDAQ:SPWR) and the 141 MW Luz del Norte of First Solar Inc (NASDAQ:FSLR), sign power purchase contracts at wholesale electricity prices.

The Latin American country is a bright example, but it is not alone. Morocco, Mexico and India are also quite close to solar grid-parity, Alcimed says.

Depending on insolation conditions, solar power around the world currently costs between EUR 70 and EUR 110 per MWh.

According to Alcimed, some projects larger than 5 MW in France have also achieved the EUR 70 per MWh mark, despite the country's more modest insolation level of 1400 kWh/m²/year.

The industrialisation of manufacturing processes, along with the drop in silicon, the technology behind 90% of the photovoltaic panels on the market, has enabled a rapid decrease in prices of solar modules, says Ronan Lucas from Alcimed. In 1980, photovoltaic power came with a price tag of EUR 24 per watt. At present, PV costs about EUR 0.56 per watt.

If solar power continues to develop at its current pace, it is set to reach much sooner the 16% share in the worldwide electricity mix that the International Energy Agency sees for solar in 2050.

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