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Scatec CEO: Cheaper solar panels and batteries will expand renewables' role on the power market

Scatec's CEO, who is a developer of renewables, said that cheaper solar power and batteries are increasing the role of these technologies in stabilising the energy system and offering more opportunities to renewables.

Scatec, a Norwegian company, builds and owns renewable energy plants. Scatec has 4.2 gigawatts (GW) in operation, another 0.8 GW is under construction and 2 GW are near-term projections. Equinor is its largest shareholder.

Scatec CEO Terje Piskog stated in an interview that solar panel prices had dropped by 66% and battery system prices by 58% over the past two years. This dramatic change has made renewable projects cheaper.

He added: "Now renewables are able to be used in more situations, and they can assume a greater, I would call it, responsibility within a power system."

Solar is the most cost-effective energy source in many countries, even though the situation is different in Europe.

He said that the power could be used as baseload, or in capacity.

He said that Scatec was the winner in South Africa over other technologies for a tender to supply a stable system capacity. Its combined solar and batteries plant offers a stable supply of 16.5 hours per day.

Scatec develops a majority of its projects in emerging markets, and in many cases receives a subsidy or a capacity payment. However, Scatec says that this is still cheaper than countries relying on fossil fuels.

Pilskog stated that Scatec has helped Cameroon save between $35 and $40 million by leasing solar plus battery systems.

Egypt is another example, where the company has built a 1 gigawatt project in order to meet domestic demand.

He added that this would allow the country's natural gas to be sold on the global market, instead of using it at home for the generation of electricity. Nora Buli reported. (Editing by Jane Merriman.)

(source: Reuters)