Solar with battery in Germany now cheaper than conventional power

Ground-mounted solar PV and onshore wind energy are the most cost-effective technologies among all types of new power plants in Germany, with levelised cost of electricity (LCOE) ranging from EUR 41 (USD 44.75) to EUR 92 per MWh, according to a study by research institute Fraunhofer ISE.

The LCOE for new solar installations in combination with battery systems vary between EUR 60 and EUR 225 per MWh reflecting the high cost differences for battery and solar systems along with the different levels of solar radiation.

The latest edition of the study shows that new solar PV systems, even in combination with battery storage, now produce electricity much more cheaply than newly built coal or gas-fired power plants. The analysis calculates the LCOE for power plants that would be built potentially in 2024 and includes the electricity generation costs for agri-photovoltaics, hydrogen power plants and nuclear power plants for the first time.

The LCOE for potentially newly constructed coal power plants is above EUR 150 per MWh due to rising carbon certificate prices while combined cycle gas turbine (CCGT) plants have lower levelised costs, between EUR 109 and EUR 181 per MWh. Gas-fired power plants for short-term flexible use have levelised costs between EUR 154 and EUR 326 per MWh.

The levelised cost for gas turbines built in 2024 and converted to hydrogen in 2035 is between EUR 204 and EUR 356 per MWh while the cost of electricity for new nuclear power plants is between EUR 136 and EUR 490 per MWh.

"These calculations show that the large-scale projects currently underway in Germany, which combine ground-mounted PV systems, wind farms and stationary battery storage systems, are good investments," says Christoph Kost, head of the Energy System Analysis Department at Fraunhofer ISE and lead author of the study.

Choose your newsletter by Renewables Now. Join for free!