Marching towards global grid parity
Around the world, the march towards global grid parity will continue. Much progress has been made over a comparatively short period of time.
This is certainly one aspect of the renewable transition where the pace of progress has been very encouraging.
Out of time
Global and market-specific factors will then continue to determine if that pace of progress is sustained and where we ultimately find ourselves at the end of this decade.
This is a three-stage process. In phase one, new solar and wind get cheaper than new coal and gas plants on a cost-of-energy basis. In phase two, renewables reach parity with power prices. In phase three, they become even cheaper than running existing thermal plants. Our analysis shows that phase one has now been reached for two-thirds of the global population. Phase two started with California, China and parts of Europe. We expect phase three to be reached on a global scale by 2030.
Tifenn Brandily Energy Economist, Bloomberg NEF, 2019