Solar trounces coal as cheapest form of power

London

SOLAR power is now cheaper than coal in some parts of the world. In less than a decade, it's likely to be the lowest-cost option almost everywhere.

In 2016, countries from Chile to the United Arab Emirates broke records with deals to generate electricity from sunshine for less than three cents a kilowatt-hour, half the average global cost of coal power. Now, Saudi Arabia, Jordan and Mexico are planning auctions and tenders for this year, aiming to drop prices even further.

Taking advantage: Companies such as Italy's Enel SpA and Dublin's Mainstream Renewable Power, that gained experience in Europe and now seek new markets abroad as subsidies dry up at home.

Since 2009, solar prices are down 62 per cent, with every part of the supply chain trimming costs. That's helped cut risk premiums on bank loans, and pushed manufacturing capacity to record levels. By 2025, solar may be cheaper than using coal on average globally, according t…