Solar thermal moves fast towards becoming competitive

Costs per kWh are steadily declining. ESTELA predicts a 30% reduction by 2015 and 50% by 2025. By then, the capacity of solar thermal plants could reach 100,000 MW

By 2025, solar thermal electricity generation costs could decline by 50%, thus becoming cost-competitive. The latter is stated in a study released by the industrial association ESTELA (European Solar Thermal Electricity Association) jointly with the consulting firm A.T. Kearney, which assesses the growth potential of solar thermal electricity generation and how it will complement the renewable energy sources portfolio.

According to the study, within 10 years solar thermal electricity generation will have the same potential as other renewables as regards the substitution of fossil fuels. Specifically, the report considers a best case scenario in which, with the proper support, this technology could reach a global installed capacity of 100,000 MW by 2025, compared to the current 3,000 MW that have been or are being installed.

Under this scenario, 130,000 jobs could be created, of which 45,000 would be permanent in operation and maintenance. As for the electricity generation costs, they could be reduced by 30% already by 2015.

(July 2010)