Global weighted average costs over the last 12 months for onshore wind and solar PV now stand at United States dollars 6 cents and USD 10 cents per kWh respectively, with recent auction results suggesting future projects will significantly undercut these averages. It estimates onshore wind is now routinely commissioned for $4 cents per kilowatt-hour (kWh).
It expects renewables will cost between three and 10 U.S. cents per kilowatt hour (kWh) by 2020, while the current cost spectrum for fossil fuel power generation ranges from five to 17 U.S. cents per kWh.
The costs of wind and solar energy will decline further in the coming years to the point of being cheaper overall than fossil fuels (fuel, gas, coal), but other green energies are also growing rapidly, according to a study published Saturday. "Our continued partnership with ADFD will provide a stable, low-priced source of financing to help Mauritius and Rwanda achieve a sustainable energy future", IRENA director general Adnan Z. Amin stated.
The "best" terrestrial and solar wind projects could produce electricity at a cost of $30 per MWh, or less in the next two years.
Competitive procurement practices together with the emergence of a large base of experienced medium-to-large project developers competing for global market opportunities are cited as new drivers of recent cost reductions, in addition to continued technology advancements.
Quoting from a report on renewable power generation costs, Amin said the cost of utility-scale solar PV electricity has fallen by 73 per cent since 2010, and record low prices in Chile, Mexico, Peru, Saudi Arabia and the UAE have made United States dollars 3 cents/kWh the new benchmark.
As the transformation of the current energy system into renewables is gaining pace, Amin said falling costs and rapid innovation have spurred investments, transforming renewable energy from niche to an economically and technically preferred solution.
The IRENA report also highlights that auction results are signalling that offshore wind and concentrating solar power projects commissioned between 2020-22 will cost in the range of $6-10 cents per kWh, supporting accelerated deployment globally. The report highlights that: • The global weighted average levelised cost of electricity (LCOE) of utility-scale solar PV has fallen by 73% between 2010 and 2017 to Dollars 10 cents/kWh. The Assembly will be held over two days till January 14 and is being attended by more than 1,000 government representatives from 150 countries. You can find the full report here. 26 additional countries are in the accession process and actively engaged.