Report finds all major renewable technologies to be cost competitive by 2020

• 6 years ago (2018-01-16)
• David Flin

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A new report from the International Renewable Energy Agency (IRENA) projects that all major renewable energy technologies will compete with fossil fuels on price by 2020.

The report, Renewable Power Generation Costs in 2017, highlights that onshore wind is now routinely commissioned for 4 cents per kWh. The current cost spectrum for fossil fuel power generation, according to the report, is between 5 and 17 cents per kWh.

According to IRENA, the cost of generation from onshore wind has fallen by around a quarter since 2010. PV electricity costs have fallen by 73 per cent in that same time, and the report said that solar PV costs are expected to further halve by 2020. It said that by 2019, the best onshore wind and solar PV projects will be delivering electricity at 3 cents per kWh.

Adnan Amin, Director General of IRENA, said: “This new dynamic signals a significant shift in the energy paradigm. These cost declines across technologies are unprecedented and representative of the degree to which renewable energy is disrupting the global energy system.”

The report says that the cost reductions have been driven by technology improvements, competitive procurement, and a large base of experienced, internationally active project developers. Amin said: “Turning to renewables for new power generation is not simply an environmentally conscious decision, it is now a smart economic one. Governments around the world are recognising this potential and forging ahead with low-carbon agendas underpinned by renewables-based energy systems. We expect the transition to gather further momentum, supporting jobs, growth, improved health, national resilience, and climate mitigation around the world in 2018 and beyond.”