Blog
What is grid parity ?
- 25/06/2020
- Publié par : ARETA Academy
- Catégorie : Green finance SMART GRID
![](https://www.areta.ma/wp-content/uploads/2021/01/parity-800x430.jpg)
Grid parity is the situation in which the price of renewable electric energy (without subsidies or government support) falls below that of the conventional energy electricity market.
The cost of producing electricity are very different depending on the size of the installations: they are inversely proportional to the size of the power plant, due to scale gains.
The market prices for electricity are very different depending on the volume of the sales contract (retail prices are much higher than wholesale prices) and depending on the voltage level at which this production is delivered to the network (the higher the voltage is lower, the higher the price because it incorporates the cumulative costs of the different network levels used); the power of the installation determines the voltage level.
The question of grid parity does not therefore arise in the same terms depending on whether we consider a large installation, at low investment cost per kW and connected at high or medium voltage, or a small installation of a few m² of space. solar panels on the roof of an individual house, connected in low voltage.