The production cost of solar power could be halved by 2013 given higher demand, improved technology and economies of scale, according to Suntech Power Holdings Co, the world’s largest thin-film solar cell manufacturer.
The production cost could fall to US$1 per watt from about $2 at present, said chief executive and founder Zhengrong Shi. “We are on track to hit that goal, as solar prices across the industry continue to decline at an average of 6% a year,” said Mr Shi.
Speaking yesterday in Bangkok at the Clean Power Asia Conference & Expo 2011, he said there was a natural trend for solar power to become an important part of the energy mix in Southeast Asia.
The cost of solar investment has dropped from $6 per watt in 2001 because of high demand and growth, he said.
In Thailand, Suntech has a contract to supply panels to Bangchak Petroleum Plc for the 44-Megawatt solar farm that it plans to open in Ayutthaya in October.
The company recently opened a regional office branch in Thailand.
Besides its work in Asean, the company is working on Israel’s largest solar farm of about 4.9 MW and is building a 150 MW solar farm in the US.
“Solar is becoming a mainstream power generation solution everywhere under the sun,” said chief commercial officer, Andrew Beebe.
Somboon Arayaskul, the governor of the Electricity Generating Authority of Thailand, agreed solar costs were poised to fall as more countries adopt the technology to reduce reliance on fossil fuels.
He said the production cost per watt electricity from traditional fuel was about $0.70, excluding fuel tariffs, so solar at $1 per watt would be quite competitive.
“Renewable energy technology costs will definitely decline due to the economies of scale in production and more efficiency of power generation,” said Mr Somboon.
The Department of Alternative Energy Development and Efficiency is studying home-roof solar cells and is considering a special tariff for a subsidy programme for private investment, according to deputy director-general Twarath Sutabutr.
Thailand has currently 26.5 MW of solar power from 64 projects sold through the grid, with another 205.2 MW from 412 projects under purchase agreements between state utilities and private producers. Purchase agreements are pending for another 257 MW from 83 projects.
