More Countries Are Turning To Solar Energy As It Is Cheaper Than Coal
The world has been depending on fossil fuel for too long. However, solar energy is now seen as an affordable alternative energy source to replace coal.
More and more countries are turning to this green energy source. Countries such as Saudi Arabia, Mexico are planning to have tenders for solar energy projects this year, while Chile and United Arab Emirates won tenders to develop power from the sunshine for less than 3 cents a kilowatt-hour.
Solar prices have been dropping 62 percent since 2009. This leads to lower risk premiums on a bank loan and drive manufacturing capacity to double capacity.The good news in solar may be cheaper than coal globally by 2025, as stated by Bloomberg New Energy Finance. Even sun-based energy is more affordable than wind energy.
According to Adnan Amin, director general of International Renewable Energy Agency, an Abu Dhabi-based intergovernmental group, the situation is becoming normal in many markets. He added that every time the capacity is doubled, the price is lower 20 percent.
Solar energy is not yet the cheapest energy source. However, seeing the progress is a good sign. Solar power has reached a record low. Solar cost dropped from US$ 600 ten years ago to US$ 300 five years later, and now US$ 100.
Meanwhile, in the U.S, all alternative energy sources are predicted to contribute 8 percent of power capacity in the U.S in 2017, based on the Department of Energy as quoted by Green reports. Solar energy accounts for most of the growth.
Costa Rica proved to be able to rely on renewable energy. In 2016, the tiny Central American nation used 98.12 percent of alternative energy sources for electricity for 250 days.
China, one of the main coal importing countries, has started to reduce emissions by being the country with the most installed solar capacity, beating Germany.
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