Cheaper solar panels, batteries to expand renewables' role in power market, Scatec CEO says

Scatec ASA

13/02/2025 10:16

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      Solar panel prices dropped 66%, battery systems 58% in
past few
years
    

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      Price drop helps renewables growth, especially in emerging
markets, Scatec CEO says
    

  
    By Nora Buli
       OSLO, Feb 13 (Reuters) - Cheaper solar power and battery
storage are expanding the technologies' role in stabilising
energy systems and thus offering more opportunities for
renewables, the CEO of renewables developer Scatec  SCATC.OL 
told Reuters.
    Norway's Scatec builds, owns and operates renewable energy
plants. It operates 4.2 gigawatt (GW) of capacity, with another
0.8 GW under construction and a further 2 GW of near-term
prospects. Its top shareholder is oil company Equinor
 EQNR.OL .   
    Solar panel prices have dropped by 66% over the last two
years, and by 58% for battery systems over the last year, a
dramatic shift making renewable projects much cheaper, Scatec
CEO Terje Pilskog said in an interview this week.
    "What happens is that now renewables can be used in many
more situations and can take a larger, I would say,
responsibility in a power system," he added.
    Although the picture is different for Europe, solar is now
by far the cheapest source of energy in many countries globally,
he said.
    "Not only on a pay-as-produced or intermittent basis, but
also as baseload or capacity power," he said.     
    In South Africa, Scatec won out over other technologies in a
tender to provide firm system capacity, with its combined solar
and battery plant offering stable supply for 16.5 hours a day,
he said.
    Scatec mainly develops projects in emerging markets and
receives some form of subsidy or capacity payment in most
places, but says this still works out cheaper than countries
needing to rely on fossil fuel-based power instead.
    Cameroon has saved $35-40 million by leasing two battery
plus solar systems from Scatec, Pilskog said.
    Another example was Egypt, where the company is building a 
1-gigawatt project to help meet rising domestic demand.
    This would allow the country to sell the natural gas it
produces in the global market instead of consuming it for power
generation at home, he added.

 (Reporting by Nora Buli. Editing by Jane Merriman)
 ((mailto:Nora.Buli@thomsonreuters.com; (+47) 21 04 05 56;
Reuters Messaging:
rm://nora.buli.thomsonreuters.com@reuters.net/))