Friday, March 14, 2014

Solar Power Is Now Malaysian Ringgit 16.5¢ Per kWh

SunEdison has just signed a 25-year power purchase agreement to sell solar power to Austin Energy at US 5¢ per kWh (about Malaysian Ringgit 16.5¢ per kWh), which is the cheapest solar power, for the moment, in U.S.A., or even in the world.

This beats natural gas, coal, and nuclear on price. If remove the ITC (a U.S.A. federal tax credit for solar), the cost would probably be about US 8¢/kWh, comparing to estimated about US 7¢/kWh for natural gas, US 10¢/kWh for coal and 13¢/kWh for nuclear in U.S.A.

Of course, this is not from a small solar farm. It’s from two solar power plants totaling 150MW.

Another important thing is that this is PEAK POWER! Solar power produces electricity at peak demand. That is very high-value electricity. SESB's peak power production cost is close to RM1 per kWh.

We can see that solar power is coming down in price very fast. Even without any subsidy and tax credit, solar power production cost has reached US 8¢/kWh (about Malaysian Ringgit 26¢/kWh). It is cheaper than what we pay in Malaysia for electricity.

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