Solar photovoltaic energy has become in most parts of the world the most abundant and economically viable form of climate neutral energy. Even major utilities worldwide acknowledge now that solar photovoltaics and battery energy storage systems (BESS) are beginning to revolutionize the electricity system in many countries.
These technologies have the potential to decarbonize in short time key sectors of human economic activity and to power, in combination with “alternative” storage options such as building-as-storage, water heater-based storage, and other demand flexibility options, a new generation of interconnected and flexible utility systems.
Already, the levelized cost of energy (LCOE) for solar photovoltaic power stations in many places beats the price tags of new fossil fuel powered energy systems even without considering the enormous externalized costs weighting on our societies by fossil fuel combustion. Battery storage prices have declined so rapidly in the last years that new utility distribution PV + Storage arrangements coming online are able to deliver dispatchable solar power at 11 $cents per kWh (e.g. for the Kaua’i Island Utility Cooperative PPA announced in in the state of Hawai’i).
Nevertheless, positive and long-term reliable political and legal framework conditions are vital for fast and low cost solar photovoltaic and storage deployment as large fractions of LCOE and LCOS constitute financing costs which in turn depend primarily on risk perception concerning the repayment of investments. Another important key to realizing the entire value of storage to customers and the grid is the (regulatory) possibility to utilize it for multiple, stacked services.
Next Solar Concept and its partners are a reliable partner to bring PV + BESS solutions online and advise on the appropriate financing arrangements as well as possible integrations with other long-duration storage and demand flexibility options.