IRENA Report Finds Renewable Power Costs at Parity or Below Fossil Fuels in Many Parts of World

The cost of generating power from renewable energy sources has reached parity or dropped below the cost of fossil fuels for many technologies in many parts of the world, according to a new report released by the International Renewable Energy Agency (IRENA).

The report, Renewable Power Generation Costs in 2014, concludes that biomass, hydropower, geothermal and onshore wind are all competitive with or cheaper than coal, oil and gas-fired power stations, even without financial support and despite falling oil prices.  Solar photovoltaic (PV) is leading the cost decline, with solar PV module costs falling 75% since the end of 2009 and the cost of electricity from utility-scale solar PV falling 50% since 2010.

However, the report notes, renewable energy price improvements are not universal, and costs range widely according to resources and the availability of financing.  Offshore wind and concentrated solar power (CSP) technologies are in earlier stages and deployment costs remain higher than those of fossil fuels.  These technologies will become more cost-competitive in future, especially where low-cost financing is available.

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