Solar energy becomes cheaper than diesel generation

• 11 years ago (2013-01-17)
• David Flin

Renewables 776

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The cost of solar energy has dropped below the cost of diesel generation worldwide for communities living away from the electricity grid, according to a report from the International Renewable Energy Agency (Irena).

Adnan Ameen, Director General of Irena, said: “The past two years have seen a remarkable increase in the competitiveness of renewable energy.” The agency said that the latest study analysing 8000 medium- to large-scale renewable power generation projects will help to reverse an “outdated negative perception that renewable energy is not competitive and cost was a major hurdle.” The report claims that renewable energy has entered a new virtuous cycle of falling costs, increasing deployment, and accelerated technological progress.

According to Irena, renewables account for almost half of new electricity capacity installed and costs are continuing to fall. In 2011, additions included 41 GW of new wind power capacity, 30 GW of solar photovoltaic, 25 GW of hydropower, 6 GW of biomass, 0.5 GW of concentrated solar power, and 0.1 GW of geothermal power.

The levelised cost of electricity (LCOE) is declining for wind, solar PV, CSP, and some biomass technologies.