The global weighted average cost of newly commissioned solar, onshore and offshore wind power projects fell in 2021, despite rising materials and equipment costs, according to a new report from the International Renewable Energy Agency (IRENA).
The report – ‘Renewable Power Generation Costs in 2021’ – said that costs fell because there is significant lag in the pass through to total installed costs.
The global weighted average levelised cost of electricity (LCOE) of new onshore wind projects added in 2021 fell by 15%, year‑on‑year, to $0.033/kWh, while that of new utility-scale solar fell by 13% year-on-year to $0.048/kWh.
Offshore wind declined 13% to $0.075/kWh.
IRENA said: “The period 2010 to 2021 has witnessed a seismic improvement in the competitiveness of renewables.
“The global weighted average LCOE of newly commissioned utility‑scale solar PV projects declined by 88% between 2010 and 2021, whilst that of onshore wind fell by 68%.”