Electricity

Falling costs reaffirm renewables as low-cost solution to boost global climate action – IRENA

Photo: Pixabay

Published

May 31, 2019

Country

Comments

0

Share

Published:

May 31, 2019

Country:

Comments:

0

Share

In most parts of the world today, renewables are the lowest-cost source of new power generation. As costs for solar and wind technologies continue falling, this will become the case in even more countries, the latest report from the International Renewable Energy Agency (IRENA) shows.

The cost of electricity from bioenergy, hydropower, geothermal, onshore and offshore wind was within the range of fossil fuel-fired power generation costs between 2010 and 2018. Since 2014, the global-weighted average cost of electricity of solar photovoltaics (PV) has also fallen into the fossil fuel cost range, according to IRENA’s Renewable Power Generation Costs in 2018 report.

Onshore wind and solar PV are set by 2020 to consistently offer a less expensive source of new electricity than the least-cost fossil fuel alternative, without financial assistance

“Renewable power is the backbone of any development that aims to be sustainable”, said IRENA’s Director-General Francesco La Camera. “We must do everything we can to accelerate renewables if we are to meet the climate objectives of the Paris Agreement. Today’s report sends a clear signal to the international community: Renewable energy provides countries with a low-cost climate solution that allows for scaling up action,” he said, according to a press release from IRENA.

Onshore wind and solar PV are set by 2020 to consistently offer a less expensive source of new electricity than the least-cost fossil fuel alternative, without financial assistance, the report reads. Among projects due to be commissioned in 2020, 77% of the onshore wind and 83% of the utility-scale solar PV project capacity in the IRENA Auction and PPA Database will produce power at lower prices than the cheapest new coal, oil or natural gas options.

Photo: Utility-scale solar PV: Total installed costs in 2018 by component and country (IRENA)

The costs for renewable energy technologies decreased to a record low last year. The global weighted-average cost of electricity from concentrated solar power (CSP) declined by 26%, bioenergy by 14%, solar photovoltaics (PV) and onshore wind by 13%, hydropower by 12% and geothermal and offshore wind by 1%, respectively.

Very low, and falling, costs of electricity for solar PV and onshore wind, as well as cost reductions for CSP and offshore wind until 2020 and beyond, make renewable power the competitive backbone of the global energy sector transformation, according to the report.

IRENA’s latest analysis of the world’s pathway to a sustainable energy sector  sees an increase in electrification, with the share of electricity growing from less than a fifth of final energy demand to nearly half in 2050, on the back of cost-competitive renewables.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

coal-power-generation-eu

Fossil fuels returned as top energy source in EU power generation in 2021

01 July 2022 - Among renewable sources, the biggest increase in 2021 was seen in electricity produced from solar energy, 13%,

Voltalia breaks ground Albania biggest solar park Western Balkans Karavasta

Voltalia breaks ground in Albania for biggest solar park in Western Balkans

01 July 2022 - The site for the Karavasta solar park spans 196 hectares in Fier county in Albania's west. The planned capacity is 140 MW.

net-loss-eps-q1

Serbia’s power utility EPS posts Q1 net loss of EUR 254 million

30 June 2022 - The state-owned power utility is blaming the poor result on a drop in output, electricity imports, and capped prices for end-consumers

EU agrees fossil fuel car ban as climate package talks are starting

EU agrees fossil fuel car ban as climate package talks are starting

29 June 2022 - The Council of the EU and European Parliament are set for talks on the Fit-for-55 package. Both agree new combustion engines should be banned by 2035.