The cost of renewable energy fell be record amounts last year, according to a new report by the International Renewable Energy Agency (IRENA).
IRENA said in the ‘Renewable Power Generation Costs in 2018’ report that the global weighted-average cost of electricity from concentrating solar power declined by 26%, bioenergy by 14%, solar photovoltaics and onshore wind by 13%, hydropower by 12% and geothermal and offshore wind by 1%.
It added that cost reductions, particularly for solar and wind, are set to continue into the next decade.
Over three-quarters of the onshore wind and four-fifths of the solar PV capacity that is due to be commissioned next year will produce power at lower prices than the cheapest new coal, oil or natural gas options, IRENA said.
“Onshore wind and solar PV costs between three and four US cents per kilowatt hour are already possible in areas with good resources and enabling regulatory and institutional frameworks,” it added.
IRENA’s director-general Francesco La Camera said: “Renewable power is the backbone of any development that aims to be sustainable.
“We must do everything we can to accelerate renewables if we are to meet the climate objectives of the Paris Agreement.
“Today’s report sends a clear signal to the international community: Renewable energy provides countries with a low-cost climate solution that allows for scaling up action.
“To fully harness the economic opportunity of renewables, IRENA will work closely with our members and partners to facilitate on-the-ground solutions and concerted action that will result in renewable energy projects.”