Aluminum vs solar energy cost analysis

What is solar technology cost analysis?

NREL’s solar technology cost analysis examines the technology costs and supply chain issues for solar photovoltaic (PV) technologies. This work informs research and development by identifying drivers of cost and competitiveness for solar technologies.

Why is aluminum important for solar power?

It is also essential for solar photovoltaic (PV) technologies. As technology now stands, there is—and will be—no solar power without aluminum, which accounts for over 85 percent of most solar PV components today. With the number of solar PVs set to increase to meet climate targets, so will the demand for aluminum.

Can aluminum be used as a solar energy source?

The World Bank estimates that under the International Energy Agency's 2-degree scenario, total emissions from aluminum for solar PV could be as much as 840 MtCO2e—more than Germany's total emissions in 2019. Aluminum is critical for the energy transition. Not only do we need more of it, it has to be cost-competitive and low-carbon.

How will carbon prices affect aluminum production?

When carbon prices are applied, opportunities for new and existing aluminum smelters are limited. This means that production will be restricted to existing producing countries such as China and India or that the price of aluminum will have to rise above historical levels, resulting in higher production costs of low-carbon technologies.

How does electricity affect aluminum production?

In the aluminum sector, nearly two-thirds of emissions relate to electricity used in aluminum production. Electricity costs can account for 40 percent of primary aluminum production operating costs and have led firms to relocate production facilities to countries with cheaper electricity, namely Canada and Iceland.

How much does it cost to power aluminum plants?

While onshore and solar energy generation has become even cheaper, with averaged levelized costs after tax credits of each at $36.93 and $30.43, respectively, limited deployment hinders their availability for powering aluminum plants.