Solar and wind power will be widespread by 2030 (II)
II. A new paradigm: green electricity is competitive
This breakthrough of renewable electricity can be explained by one factor: solar and wind energy are currently the cheapest energy sources in a rising number of countries. In the United States, the profitability threshold for photovoltaic projects has been cut by two thirds since 2011. For wind power, the profitability threshold has been lowered by more than one third over the same period. Also in China and India, green energy is becoming the cheapest form of electricity, ahead of coal. These two countries are the world’s largest coal consumers.
With regard to photovoltaic electricity, the rapid decrease in production cost is primarily the result of major investments which have been made in production capacity, which enable significant economies of scale to be achieved.