The photo voltaic increase of current years is now displaying its darkish aspect. In Austria and Germany, the costs of electrical energy produced by PV techniques are at the moment falling considerably.
The first instance from Upper Austria: Energie AG Oberösterreich (EAG) terminated the photovoltaic provide contracts of practically 20,000 clients this week. These contracts beforehand assured a minimum of 15.73 cents per kWh. From now on, clients will obtain a brand new “Team Sonne Loyal Float” tariff, primarily based on the reference market. In April 2024 you’d have acquired solely 3.12 cents per kWh, which is barely a fifth of the outdated tariff. The legislation agency SCHEIBER LAW is now searching for to take authorized motion concerning this mass dismissal in collective proceedings.
The purpose for these falling costs is that extra photo voltaic vitality is produced in Upper Austria than is used. EAG administration says surpluses must be offered on the worldwide market at market costs, which is why they wish to reply with a versatile pricing mannequin that responds to market circumstances. Due to the warfare in Ukraine and the vitality disaster, there was an actual PV increase lately, which has additionally inspired the rise of Enpal, 1Komma5 °, Zolar and neoom.
Negative photo voltaic vitality costs in Germany
German solar energy producers needed to settle for a weighted electrical energy worth of solely EUR 9.1/MWh 10 days in the past. In comparability, the common worth of electrical energy with out solar energy hours was EUR 70.6/MWh. This corresponds to an 87% worth drop for solar energy producers, SEB Research has calculated.
The purpose for the value drop lies within the massive growth of photo voltaic vitality techniques in Germany by 2023. According to “PV Magazine International”, a file capability of 14,280 MW was put in final yr, nearly twice as a lot as in 2022. Total put in photo voltaic capability reached 81.7 GW by the top of 2023, as Renewables Now studies. In comparability, the common demand load in Germany was 52.2 GW.
Focusing on altering batteries
Falling photo voltaic costs imply falling revenues for photo voltaic producers until lined by subsidies or PPAs. The incomes potential of latest solar energy initiatives can also be declining considerably. The fast progress in new photo voltaic installations is prone to come to an abrupt halt.
The focus is now anticipated to shift from rising photo voltaic vitality manufacturing to grids, batteries, versatile demand and all alternatives to take advantage of “free electrical energy”. This, over time, will eradicate the provision of “free electrical energy” and drive up photo voltaic costs, in the end creating room for photo voltaic to develop once more.
Focusing photo voltaic vitality manufacturing as a problem
Another downside with photo voltaic vitality is the excessive focus of manufacturing. In 2023, 80% of Germany’s photo voltaic vitality manufacturing can be produced in simply 22.3% of the annual hours. Once photo voltaic vitality manufacturing reaches 22.3% of the overall electrical energy provide, the costs of photo voltaic vitality might lower. By 2023, solar energy technology has reached 55 TWh, which is substantial however nonetheless solely represents 12% of the overall demand of 458 TWh.