Quantcast
Renewable Energy
Pixabay

All Renewables Will Be Cost Competitive With Fossil Fuels by 2020

Generating electricity from renewable energy sources is not only better for the environment compared to fossil fuels, but it will also be consistently cheaper in just a few years, according to a new report.

According to a cost analysis from the International Renewable Energy Agency (IRENA), the best onshore wind and solar photovoltaic (PV) projects could deliver electricity for $0.03 per kilowatt-hour (kWh) by 2019, much lower than the current cost of power from fossil fuels, which ranges from $0.05 to $0.17 per kWh.


The analysis highlights the dramatic dip in solar and wind prices over the last decade. Onshore wind has fallen by around a quarter since 2010, with solar PV electricity costs falling by 73 percent in that time. Additionally, solar PV costs are expected to halve by 2020.

In the last 12 months alone, the global weighted average costs of onshore wind and solar PV have stood at $0.06 and $0.10 per kWh, respectively. Recent auction results also suggest future projects will significantly undercut these averages—onshore wind is now routinely commissioned for $0.04 per kWh. Additionally, record low prices for solar PV in Abu Dhabi, Chile, Dubai, Mexico, Peru and Saudi Arabia have made $0.03 kWh (and below) the new benchmark.

Other types of renewable technologies—including hydropower ($0.05 per kWh), bioenergy and geothermal ($0.07 per kWh)—have also been cost competitive with fossil fuels over the last 12 months, the report found.

Remarkably, IRENA projects that all forms of renewables will compete with fossils on price by 2020.

"This new dynamic signals a significant shift in the energy paradigm," Adnan Z. Amin, IRENA director-general, said. "These cost declines across technologies are unprecedented and representative of the degree to which renewable energy is disrupting the global energy system."

According to the report, the cost reductions have been driven by a number of factors, including competitive procurement practices, the emergence of a large base of experienced medium-to-large project developers competing for global market opportunities, and continued technological advancements.

"Turning to renewables for new power generation is not simply an environmentally conscious decision, it is now—overwhelmingly—a smart economic one," Amin continued.

"Governments around the world are recognizing this potential and forging ahead with low-carbon economic agendas underpinned by renewables-based energy systems. We expect the transition to gather further momentum, supporting jobs, growth, improved health, national resilience and climate mitigation around the world in 2018 and beyond."

The report was released Saturday, the first day of IRENA's Eighth Assembly in Abu Dhabi, where more than 1,100 representatives of governments from 150 countries met to reaffirm the global renewable energy agenda and to make concrete steps to accelerate the global energy transition.

Here are highlights from the report:

  • The global weighted average levelized cost of electricity (LCOE) of utility-scale solar PV has fallen by 73 percent between 2010 and 2017 to $0.10/kWh.
  • The average cost of electricity from onshore wind fell by 23 percent between 2010 and 2017. Projects are now routinely commissioned at $0.04/kWh and the global weighted average is around $0.06/kWh.
  • By 2019, the best onshore wind and solar PV projects will be delivering electricity for an equivalent of $0.03/kWh, or less. New bioenergy and geothermal projects commissioned in 2017 had global weighted average costs of around $0.07/kWh.
  • Record low prices for solar PV in Abu Dhabi, Chile, Dubai, Mexico, Peru and Saudi Arabia have made $0.03 kWh (and below) the new benchmark.
  • By 2020, project and auction data suggest that all currently commercialized renewable power generation technologies will be competing, and even undercutting, fossil fuels by generating in the range $0.03 to $0.10/kWh range.
Show Comments ()

EcoWatch Daily Newsletter

Sponsored
Health
"From 1992 to 2016, heat killed 783 workers in the U.S. and seriously injured nearly 70,000, according to a new report on heat risks." InsideClimateNews / USDA

Protect Workers From Extreme Heat, Advocates Urge OSHA

A broad coalition of worker advocacy, public health and environmental groups on Tuesday called on the federal Occupational Safety and Health Administration (OSHA) to create a workplace standard for heat stress.

Keep reading... Show less
Animals
Emilie Chen / Flickr / CC BY-ND 2.0

Against All Odds, Mountain Gorilla Numbers Are on the Rise

By Jason Bittel

The news coming out of East Africa's Virunga Mountains these days would have made the late (and legendary) conservationist Dian Fossey very happy. According to the most recent census, the mountain gorillas introduced to the world in Gorillas in the Mist, Fossey's book and the film about her work, have grown their ranks from 480 animals in 2010 to 604 as of June 2016. Add another couple hundred apes living in scattered habitats to the south, and their population as a whole totals more than 1,000. Believe it or not, this makes the mountain gorilla subspecies the only great apes known to be increasing in number.

Keep reading... Show less
Health
San Cristóbal de las Casas, in the Mexican state of Chiapas. Tjeerd Wiersma from Amsterdam, The Netherlands / CC BY 2.0

How Coca-Cola and Climate Change Created a Public Health Crisis in a Mexican Town

A lack of drinking water and a surplus of Coca-Cola are causing a public health crisis in the Mexican town of San Cristóbal de las Casas, The New York Times reported Saturday.

Some neighborhoods in the town only get running water a few times a week, so residents turn to soda, drinking more than half a gallon a day on average.

Keep reading... Show less
Animals
Plastic trash isn't safe for kids, whether human or bear. Kevin Morgans Wildlife Photography

Even Polar Bear Cubs Can’t Escape Plastic Pollution

By Allison Guy

Plastic bags are often stamped with an all-caps warning: This bag is not a toy. Unfortunately, polar bear moms don't have much control over their kids' playthings.

Keep reading... Show less
Sponsored
Insights
Sea level rise is a natural consequence of the warming of our planet. NASA Goddard Space Flight Center

We Can’t Hide From Global Warming’s Consequences

Over the past few months, heat records have broken worldwide.

In early July, the temperature in Ouargla, Algeria, reached 51.3°C (124.34°F), the highest ever recorded in Africa! Temperatures in the eastern and southwestern U.S. and southeastern Canada have also hit record highs. In Montreal, people sweltered under temperatures of 36.6°C (97.88°F), the highest ever recorded there, as well as record-breaking extreme midnight heat and humidity, an unpleasant experience shared by people in Ottawa. Dozens of people have died from heat-related causes in Quebec alone.

Keep reading... Show less
Health
Stacey_newman / Getty Images

More Than a Third of Schools Tested Have ‘Elevated Levels’ of Lead in Drinking Water

A troubling new report by the U.S. Government Accountability Office (GAO) found that more than a third of the nation's schools that tested their water for lead found "elevated levels" of the neurotoxin. But despite heightened concern in recent years about lead in drinking water, more than 40 percent of schools surveyed conducted no lead testing in 2016.

Keep reading... Show less
Sponsored
Popular
Bill Pugliano / Stringer / Getty Images

Can Elon Musk Fix Flint’s Water?

By Fiona E. McNeill

The Michigan community of Flint has become a byword for lead poisoning. Elon Musk recently entered the fray. He tweeted a promise to pay to fix the water in any house in Flint that had water contamination above acceptable levels set by the U.S. Food and Drug Administration.

Keep reading... Show less
Popular
A researcher at Oregon State University examines creeping bentgrass. Oregon State University / Flickr / Tiffany Woods

You Need to Be Paying Attention to GMO Grass

By Dan Nosowitz

Creeping bentgrass doesn't get as much attention as other genetically modified plants. But this plant tells us an awful lot—emphasis on the "awful"—about how GMO plants are regulated and monitored.

Keep reading... Show less
Sponsored

mail-copy

The best of EcoWatch, right in your inbox. Sign up for our email newsletter!