All RES to be Cost-Competitive by 2020

The International Renewable Energy Agency (IRENA) has released a report titled, ‘Renewable Power Generation Costs in 2017’ on the first day of its Eighth Assembly in Abu Dhabi. The comprehensive report states that onshore wind power is now cheaper than, or as expensive as, any other source of power. According to the report, current trends in technologies and prices will lead to the cost competitiveness of all renewable energy sources with fossil fuels by 2020.

The study is based on the latest available data of cost and prices established at auctions for power generation contracts. It provides an overview of the trends of all forms of renewable power technologies. The findings highlight that other forms of renewable power generation, such as bioenergy, geothermal and hydropower have - in the last twelve months - competed head-to-head on costs with power from fossil fuels. The projects that are commissioned in the period of 2020-2022 (in the range of USD 6-10 cents per kW/h), will be supporting international developments globally.

The report notes that global competition keeps contributing to making renewables more competitive. As installation accelerates, the cost equation improves. With every doubling of cumulative installed capacity for onshore wind, investment costs decrease by 9% and the resulting electricity becomes 15% cheaper. The levelised cost of electricity from solar photovoltaic was also decreasing by 69% between 2010 and 2016. As Adnan Z. Amin, the Director-General of IRENA has stated, “This new dynamic signals a significant shift in the energy paradigm”.

The growing competitiveness of renewables is also the reflection of the development of key competitiveness factors such as the favorable regulatory and institutional framework; low offtake and country risks; a strong, local civil engineering base; favorable taxation regimes; low project development costs and excellent resources.

The full report is available under the following link: http://irena.org/-/media/Files/IRENA/Agency/Publication/2018/Jan/IRENA_2017_Power_Costs_2018.pdf

To learn more about the Eighth Session of the Assembly of IRENA please follow this link: http://www.irena.org/events/2018/Jan/Eighth-Session-of-the-IRENA-Assembly