Green hydrogen could reach cost parity in Australia, Germany and Japan by 2030, according to analysis by Wood Mackenzie.
Released at Wood Mackenzie’s Energy & Commodities Summit in Singapore, the analysis revealed the Asia Pacific region will become the leading market for new solar and wind installations in the world by 2040. It is forecast to add 1,528GW over the next two decades. Such an increase would see the levelised cost of solar, wind and storage projects fall over 3% annually over the next 10 years, substantially bolstering competitiveness with fossil fuel energy sources.
Solar will play a large part in the rise of green hydrogen with solar electrolysis noted as being its key driver. Prakash Sharma, Head of Markets and Transitions in Asia Pacific for Wood Mackenzie, told pv magazine that its 2030 forecast was based on $30/MWh (£23.14) renewable electricity and 50% utilisation hours for electrolysers. Sharma added that policy support was still needed to facilitate demand for green hydrogen.