While the energy mix in many countries is shifting towards low-carbon fuels, about 3600 island nations continue to rely on imported oil for power generation. Historically, oil-fired power generation was the most economic way of providing reliable electricity to remote communities.
A new report from Wood Mackenzie and sister company GTM Research, ‘LNG versus Solar: What is the best option for island power markets’, shows the economics of power generation is changing. Our research finds that by 2025, a range of solar, storage and hybrid alternatives will have a lower levelised cost of energy (LCOE) than oil.
Tom Heggarty, senior analyst in global solar markets at GTM Research and co-author of the report, said: “We think there’s an opportunity for island markets to take a lead in transitioning to a low-carbon supply.”
The report assessed the economics of several lifetime scenarios, including existing standalone LNG, solar and diesel; a solar and LNG hybrid; solar with lithium-ion storage and diesel; solar with lithium-ion storage and LNG; and solar with a lithium-ion battery. The projections included construction costs for infrastructure.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/25102017/lng-vs-solar-power/