Skip to main content

Renewables are becoming the cheapest source of new power generation

According to the International Renewable Energy Agency (IRENA), renewables are the cheapest energy sources for new power generation in most parts of the world. The cost of electricity generated from bioenergy, hydropower, geothermal, onshore and offshore wind power was estimated to be within the range of fossil-fuel-fired power generation costs over the 2010-2018 period. The global-weighted average cost of solar PV has also been competing with fossil power generation since 2014.

The global weighted-average cost of renewable electricity has been steadily declining since 2010 and this trend continued in 2018: costs fell by 11% for hydropower to an average US$4.7c/kWh, by 13% for solar PV and onshore wind (to US$8.5c/kWh and US$5.6c/kWh, respectively), by 14% for bioenergy (US$6.2c/kWh) and by 26% for CSP (US$18.5c/kWh).

This fall in costs is making onshore wind and solar PV power generation a cheaper source of new electricity than the least-cost fossil fuel alternative, without financial support: most of the solar PV projects and onshore wind projects expected to be commissioned in 2020 will generate power at lower prices than the cheapest new coal, oil or natural gas options. In addition, the IRENA estimates that the costs of new solar PV and onshore wind will drop below the marginal operating cost of existing coal-fired power plants in 2020.

Power plant tracker

Interested in Power Plants?

Enerdata has developed a market research service to screen, monitor and analyse the development of power generation assets.

Power Plant Tracker offers an interactive database and a powerful search engine covering power plants worldwide – including both installed and planned capacities for renewables and fossil fuels.

Request a free trial Contact us