The Australian Renewable Energy Agency (ARENA) has released a white paper on the potential of ultra low-cost solar (ULCS) for Australia and the world.
The white paper focuses on ARENA’s 30-30-30 goal for ULCS in Australia, which implies 30% solar module efficiency and an installed cost of 30 cents per watt by 2030.
ARENA regards ultra-low-cost solar as a critical aspect of Australia becoming a renewable energy superpower. While present solar PV technology is adequate for home energy usage, ARENA said ultra-low-cost solar would be required to dramatically cut the cost of renewable power for heavy industrial operations, including the ability to produce green hydrogen for less than $2 per kilogram.
‘The Incredible ULCS: How ultra low-cost solar can unlock Australia’s renewable energy superpower’ white paper’s main objectives are as follows:
- elevate solar photovoltaics (PV) in Australia’s national priorities by detailing the benefits that extremely cheap solar might unlock;
- communicate critical challenges and innovation objectives for ultra-low-cost solar to government, industry, and the Australian public.
ARENA said urgent action is required to expedite Australia’s path towards net zero, with solar serving as one of the story’s heroes. Solar, along with wind generation, is one of the most essential technologies for decarbonising the global energy system.
This is especially true in Australia, according to ARENA, where solar will be critical to reducing emissions from electricity, industry, transportation, and buildings.
ARENA has championed the power of solar energy since its creation, from funding Australia’s first large-scale solar farms to cutting-edge solar research through the Australian Centre for Advanced Photovoltaics (ACAP) and R&D funding rounds. To date, ARENA has contributed approximately $800 million in funding to solar PV projects.
Solar PV technology is already developed and cost-effective enough to be used at scale. ARENA noted that no substantial technology breakthroughs are required to accomplish Australia’s 2030 electrical system targets if the country progresses with essential enablers such as energy storage, flexible demand, transmission, and grid connectivity.
However, ULCS might result in significantly cheaper power for Australians, export prospects to adjacent nations, and help decarbonise hard-to-abate sectors like industry and transport.
According to ARENA, the vision requires a significant shift from Australia’s current levels of solar module efficiency installation cost. In terms of total levelised cost of energy (LCOE), ARENA’s vision calls for a reduction of about one-third of today’s solar LCOE, which is now less than $20 per megawatt hour.
ARENA CEO Darren Miller said realising the vision will not be easy, but Australia has a comparative advantage due to its huge land mass, strong solar resources, and abundance of minerals that may be utilised to produce green products.
“Innovation is key to reducing the cost of solar. Groundbreaking research has been taking place in Australia’s labs since the 1980s, and we have homegrown startups such as 5B and SunDrive doing exciting things in novel deployment methods and materials science. Now Australia needs to step up support so we can see even further cost reductions through increased module efficiencies, cheaper material costs and innovative ways to deploy and maintain solar out in the field,” Miller stated.
“We need a united front to tackle this task. We’re calling on Australia’s governments, market bodies, developers, investors and innovators across the entire supply chain to commit to these goals. I truly believe that Australia’s solar potential is huge and that we’re well positioned to become a renewable energy superpower,” he added.
