Slash Of Solar Costs To $20s/MWh

Recently, USanjeev Gupta, UK billionaire announced that the ACCC plan for the federal government to finance new “firming” capacity could help propel down the price of solar in Australia to rates as inexpensive as $20/MWh. 

On Wednesday he revealed the first of his proposed one gigawatts of “dispatchable” renewable energy output, to energize the  Whyalla steelworks and other important users, at a celebration at the site of the first project, a 280MW solar plant at Cultana near Whyalla.

This will be succeeded in the next year or two by yet further solar capacity, plus what would be the globe's biggest lithium-ion battery (120MW and 140MWh) close to Port Augusta and a pumped hydro facility near an old iron ore mine in the closeby Middleback Ranges.

Gupta’s Designs 

Gupta’s designs for solar go much farther,  and he has described a concept for up to 10GW of solar capacity across the country to rehabilitate Australia’s position as a cheap energy producer with a strong manufacturing authority.

“There is no doubt in my mind that Australia should be the cheapest solar energy producer in the world,” Gupta explained in an interview on Thursday.

He was guided to recent contracts into the Middle East and India in the mid $US20s/MWh and stated this was underpinned by an entrance to cheap land, affordable finance, and lower construction costs.

Ironically, he said his concept to “solarise” the Australian marketplace could be accelerated by the proposal from Australian Competition and Consumer Commission director Rod Sims for the federal government to “underwrite” new firming capability in the market.

The Turnbull government has designated that it will embrace this idea, although many critics, and many in the Coalition government, see this as a chance to bring in new coal-fired power stations, despite a practically universal view in the energy industry that new coal makes no economic or environmental reason.

Gupta Views 

On the other hand, Gupta views the auction as a chance to bring down the expense of solar, because the government underwriting commitment, contributing a minimum return of approximately $45-$50/MWh to a new project from years 5 onwards, would reduce the expense of finance.

“That would allow us to borrow at around government rates,” Gupta says. “We have seen similar programs in the UK …. and if construction costs can also be brought down, we can get solar to below the cost of the Middle East because Australia has a much better solar resource.”

Gupta states that even with firming capacity, the package of “reliable” and “dispatchable” solar should be led down to the $40-$50/MWh range. “That is half what we are paying now,” he states.

“We think solar is the cheapest energy option. It is not enough by itself, we need solutions for the nonsolar hours, but we are working on those” with the extension of battery storage, pumped hydro and financial contracts.

Gupta says that most businesses in Australia were not interested in political discussions around fossil fuels and renewables, they want access to the most affordable supply. It’s just that he has no doubts that renewables are the most economically reasonable.

Prices all over the world on solar are moving towards some exciting places and times.  The solar revolution is at hand. Just make sure, and promise us here at HahaSmart you will have a look at what we can offer you on the cost of solar panels and cost of solar installations. We will strive to find you the best prices available. Follow the solar experts. Try our price checker tool. It tells you how much solar power you need and how much you can save on your energy bills each month.