A cost-effective alternative to conventional power plants
The latest study by the Fraunhofer Institute for Solar Energy Systems ISE shows that photovoltaic systems with battery storage now produce electricity more cheaply than conventional coal and gas-fired power plants. The cost forecasts for renewable energies up to 2045 are also very promising.
According to the Fraunhofer ISE study, ground-mounted PV systems and onshore wind turbines are currently the most cost-effective technologies for generating electricity in Germany. The electricity generation costs for these systems are between 4.1 and 9.2 cents per kilowatt hour, undercutting not only other renewable energies but also all conventional power plant types.
Battery storage as a valuable addition
Photovoltaic battery systems have electricity production costs that vary between 6.0 and 22.5 cents per kilowatt hour, depending on the location and battery system. This shows the enormous potential of this technology, especially in combination with ground-mounted PV systems and wind farms. Dr Christoph Kost from Fraunhofer ISE emphasises the advantages of such combinations: “The combination allows grid capacities to be better utilised.”
Cost reductions expected by 2045
The study also provides a forecast for cost developments up to 2045. Small rooftop PV systems could then supply electricity for 4.9 to 10.4 cents per kilowatt hour, while ground-mounted PV systems could reach 3.1 to 5.0 cents per kilowatt hour. Significant cost reductions to between 7 and 19 cents per kilowatt hour are also expected for small PV battery systems, provided that storage prices fall as forecast.
Flexible power plants remain necessary
Despite the positive developments in renewable energies, flexibly controllable power plants remain indispensable as a back-up. Biogas and biomass power plants could take on this role to some extent, but at significantly higher costs. For example, the electricity generation costs for biogas are between 20.2 and 32.5 cents per kilowatt hour and for biomass plants between 11.5 and 23.5 cents per kilowatt hour.
Hydrogen power plants as a supplement
The study also shows the costs for hydrogen-fuelled gas and steam turbine power plants in 2030: they amount to between 23.6 and 43.3 cents per kilowatt hour. These costs result from the high expenses for CO2 and hydrogen procurement. Paul Müller from Fraunhofer ISE emphasises the necessity of these technologies as a supplement: “We need them as an important addition. However, their operation will be limited to the bare minimum.”
The results of the Fraunhofer study make it clear that photovoltaic systems with battery storage are not only a cost-efficient alternative to conventional power plants, but also a future-proof one. The expected cost reductions by 2045 make renewable energies an increasingly attractive option for power generation.