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PÖYRY POINT OF VIEW ARTICLE / 7 Sep 2014

Is the end in sight for renewable subsidies?

Wholesale grid parity of solar and wind

Our latest Point of View report explores when grid parity for solar and wind might happen and what the implications could be. Grid parity occurs where emerging technologies such as wind and solar produce electricity at the same levelised cost as buying power from the grid.

It has long been considered the ‘holy grail’ for renewables as it will usher in a new era of unsubsidised renewables where market forces, not subsidies, would drive large scale deployment. The revenues of any investment now undertaken with a defined economic life (e.g. 30 year) will be affected by the build of unsubsidised renewables (as typical subsidy regimes are 10-20 years in duration).  

With a focus on Europe, the analysis has been conducted by Poyry’s state-of-the-art electricity model BID3. The report defines grid parity, explores where and when it might happen first and the implication of it being reached.

Read the full report

Contact information

James Cox
Senior Principal, Pöyry Management Consulting
Anser Shakoor
Senior Consultant, Pöyry Management Consulting