Grid parity

Power parity ( engl. grid parity ) is a term used in the art of producing electrical energy from renewable energy sources.

The term refers to the condition of equal cost of self-generated compared to the purchased electrical energy. Grid parity is considered usually as reached when the view of the end-user self-produced electricity cost per kilowatt-hour, the same causes as the purchase of an electricity provider, so the current reference over the net. In this comparison, it should be noted that the cost of electricity purchases represent full costs ( ie in addition to the cost of electricity, the cost of the electricity grid and the taxes include ) while representing the cost of the end user only part costs.

Occasionally, the term is also used from the perspective of commercial power producers ( power companies ) and compared to the acquisition cost of electricity from renewable energy sources, eg in spot markets, with their own production or acquisition costs of conventionally generated electricity. Thus, grid parity is given only at a much lower price. Here the cost of electricity of both methods are compared.

Terms of grid parity

Usually the term is used in connection with certain renewable energies, which are suitable for production in small private installations and passed on the same line into the grid from which the current reference is provided. This is particularly the case with photovoltaic systems, but also in cogeneration plants. In these cases, a cost comparison is obvious since the self-generated the money made from the network physically replaced immediately.

The background is the fact that as a " cost-covering remuneration " of solar power originally a multiple of the private electricity costs was necessary, but at the same time a continuous regression of this ratio was due to lower production costs to a future " parity " expected (see electricity production costs ) in composite systems.

Deviating are stand-alone systems include other factors in the comparison, such as the cost of electricity storage in the production on the one hand and on the other hand, the cost for making a network connection to the electricity supply. The latter may result in the individual case to the conclusion that PV systems generate electricity despite storage costs at the same or cheaper prices. This is especially true in remote locations or very low consumption such as parking meters and similar facilities (see grid system, off-grid, off-grid system ). In particular, since the battery prices have fallen sharply in recent times, the pricing advantage today is more than a self-sufficient system (see example calculation ).

Time of grid parity

Household electricity (photovoltaics)

In countries and regions with favorable weather conditions and expensive conventionally generated electricity, grid parity has already been achieved in 2010 and 2011: Spain, Portugal, Italy, Malta, Cyprus, Denmark as well as in Hawaii and Northern California.

In Austria and Germany, grid parity was reached in early 2012. It is expected that the oil parity in Germany until 2016 achieved in the period 2015.

Australia, Belgium, Hungary, Luxembourg, the Netherlands, Croatia, Greece, Ireland, Slovenia, Slovakia: - originally for 2013 and 2014 expected - grid parity probably be achieved as early as 2012 due to the 2010 and 2011 a sharp decline in asset prices, a can in the following countries and Sweden. Australia in 2011 reached grid parity for PV. In some areas of Australia the production costs (including 8 percent profit ) per kilowatt-hour of a photovoltaic system are less than the retail price for the purchase of fossil electricity produced. The production price of electricity from photovoltaic systems in these areas was well below the reference prices of power.

By 2015, the countries Brazil, France, Japan, Turkey, and the U.S. state of California will reach grid parity, even if the household electricity prices in the future should not increase.

The German bank sees strong growth in photovoltaics, because in at least 19 markets is achieved grid parity (1/ 2014) worldwide. The prices of photovoltaic will continue to fall. It would prevail beyond feed-in tariffs increasingly business models. The continued growth is due to the fact that photovoltaics is becoming more competitive.

Industrial electricity (photovoltaics)

The purchase prices for electricity paid by industrial companies or business entities, are in all countries - sometimes very significantly - below those prices that are paid by private households. Compared to the prices of industrial power was the so-called "Industrial grid parity " is reached in Cyprus and in 2011 in Italy for the first time in 2010. Austria and Germany will reach that mark in 2014, for some, especially smaller businesses, there is but one grid parity already in 2012.

The "Industrial Grid Parity" is considered an important brand for the photovoltaic market, as industrial enterprises and commercial enterprises all through their often high and continuous self-consumption - use generated electricity itself and no profit-reducing surplus feed into the public grid - in its own photovoltaic systems need to make.

Commercial photovoltaic systems have, according to a study by Eclareon (Madrid, Spain) in Germany, Italy and Spain reached grid parity (03 /2014 ).

Effects of grid parity

It expressed the hope that if their electricity end-users are able to produce even cheaper than buying this, a self-sustaining growth of electricity production plants results from renewables. Since inexpensive storage technologies for electric power are missing, the profitability of PV systems, however, further depends heavily on the price at which the operator can sell their surplus electricity. For this reason, it is expected that the amount of subsidies by the EEG will determine in the coming years, the construction of new PV installations in Germany. However, battery prices have fallen sharply in recent times, so that in Germany even grid parity is achieved for photovoltaic plus storage in the battery (see electricity production costs, sample calculation for power storage ).

The profitability of own consumption of solar power is that the cost of electricity purchased from the grid full costs represent (ie in addition to the cost of electricity, the cost of the electricity grid and the taxes include ), while the costs for own consumption only represent part costs. Currently, the amount of eigenverbrauchten solar power is marginal. With an increasing proportion selbstverbrauchten solar electricity, the electricity price rises because the fixed costs of the power system must be allocated to a lower number of transported kWh. In order to avoid this, and a usage-based allocation of network costs is a network usage fee and a higher fee for those who suggested that feed both current as well as remove.

In an interview in March 2014, the E.ON CEO Johannes Teyssen said: "I do not expect that with the conventional power generation in the future, have any significant amount of money can be earned. "

Bloomberg New Energy Finance provides a so-called tipping point in wind and solar energy. The price of wind and solar power are fallen sharply in recent years and today would be (1/ 2014) are in some areas or parts of the world already below the prices of conventional electricity generation. The prices would continue to fall. The grids were greatly expanded worldwide, so that they could now receive and distribute electricity from renewable sources. In addition, the renewable energy would have caused worldwide ensure that electricity prices were come under strong pressure. In addition, the renewable energy would enthusiastically received by consumers. Already in 2014, this system change for many people to be obvious.