Solar parity by 2015

Courier Mail
Friday 16/4/2010 Page: 46

A SOLAR power plant developer investigating sites in Queensland says solar electricity generation costs could be similar to coal-fired power costs within five years. NSW-based Silex Systems recently completed its purchase of the assets and technology of Melbourne-based Solar Systems Group. SSG collapsed last year, taking with it plans to use Australian technology to build one of the world's largest and most efficient solar power stations - a 100-MW plant near Mildura in Victoria.

Silex Systems chief executive Michael Goldsworthy said yesterday that the company aimed to start building the Mildura plant next year and had separately lodged an application for federal funding for a solar plant of up to 180MW as part of the $1.5 billion Solar Flagships Program. "We've looked at sites in Queensland, NSW and Victoria and, hopefully, we'll make the candidate short-list and then get into the detail of site selection," Dr Goldsworthy said.

"No one could ignore the potential of a big solar installation in Queensland. It's the Sunshine State." Many governments are moving to slash planet-warming greenhouse gases from their electricity sector but need to provide policy support to help emerging, clean technologies compete against cheaper coal fired power until costs narrow. But Dr Goldsworthy said solar production costs were falling rapidly, largely as silicon wafer costs fell and efficiencies rose.

"Short-term government incentive is extremely important to allow the industry to gain the economies of scale and reduce costs down to grid parity," he said. "But the way it's tracking at the moment, you could reach grid parity in the cost between solar and baseload coal in the next few years, certainly within five years." A relative lack of government incentives for solar power in Australia had meant technology developers had struggled, while European, US and Asian solar companies had flourished under strong government policy settings.