Cost reduction potential for UK large-scale PV

This new Levelised Cost of Electricity (LCOE) analysis, developed based on member and stakeholder feedback and in consultation with leading renewable energy market observers, describes the cost reduction potential for large-scale solar PV in the UK commissioning in 2019-30.
The STA’s previous LCOE assessment, published in November 2014, had anticipated costs of around £80MWh in 2019. This updated analysis for 2019 shows that reductions in both operational and capital costs have far exceeded the STA’s earlier expectations, as well as BEIS’s 2016 Central Estimate of Electricity Generation Costs, demonstrating that LCOE of £50-60MWh are achievable in 2019. Although costs vary significantly on a site by site basis, the findings confirm that under a long-term power purchase contract or with the support of a subsidy-free CfD or similar mechanism, solar could soon be the cheapest electricity generation technology in the UK.

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