Today, the European carbon price hit 20 Euros. Our analysis shows rising carbon, coal and gas prices mean that for the first time new onshore wind and solar can compete with the short-term costs of generating electricity from existing coal and gas plants. The cost of generating electricity from both coal and gas has surged since 2017. Since the start of 2017, year-ahead coal generation costs have increased by 72% to €46/MWh, and gas generation costs have increased by 43% to €49/MWh. Wind and solar prices, meanwhile, have been trending in the opposite direction. They fell massively through 2017, and remain low in 2018. In Germany’s renewable auctions, both wind and solar have had two auctions each where the lowest bids were around €38/MWh.
Renew Economy 27th Aug 2018 read more »