Grid parity
Matching the price of the electricity grid / From Wikipedia, the free encyclopedia
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Grid parity (or socket parity) occurs when an alternative energy source can generate power at a levelized cost of electricity (LCOE) that is less than or equal to the price of power from the electricity grid. The term is most commonly used when discussing renewable energy sources, notably solar power and wind power. Grid parity depends upon whether you are calculating from the point of view of a utility or of a retail consumer.[1]
This article needs to be updated. (March 2017) |
Reaching grid parity is considered to be the point at which an energy source becomes a contender for widespread development without subsidies or government support. It is widely believed that a wholesale shift in generation to these forms of energy will take place when they reach grid parity.
Germany was one of the first countries to reach parity for solar PV in 2011 and 2012 for utility-scale solar and rooftop solar PV, respectively.[2]:ā11ā By January 2014, grid parity for solar PV systems had already been reached in at least nineteen countries.[3]
Wind power reached grid parity in some places in Europe in the mid 2000s, and has continued to reduce in price.