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I am pretty bullish about solar technology, as you might be able to tell from my posting history, but I'm a bit suspicious of those sub-$30 record breaking bids
by philipkglass 10y ago
I am pretty bullish about solar technology, as you might be able to tell from my posting history, but I'm a bit suspicious of those sub-$30 record breaking bids reported on this year. It looks like the companies making the bids are either gambling on continued aggressive cost reductions before the plants are scheduled to enter service or they're basically not making money on the contracts. Some of them could end up like SunEdison if they've left no margin for error.
That said, $150/MWh is certainly too high for a PV project entering service in 2018 in any reasonably sunny part of the world. American PPA prices this year, bid realistically by experienced companies, are such that they're still in the $70-$80 range after you back out the 30% Investment Tax Credit.