Renewable costs falling, solar to halve by 2020: Irena

Abu Dhabi: ADFD allocates USD25m for solar projects

Abu Dhabi: ADFD allocates USD25m for solar projects

The report also highlights that solar PV costs are expected to halve by 2020.

Already past year, the average costs of new onshore wind farms and solar power projects fluctuated between $60 and $100 per MWh, with several records below that average. It estimates onshore wind is now routinely commissioned for $4 cents per kilowatt-hour (kWh). The current cost spectrum for fossil fuel power generation ranges from United States dollars 5-17 cents per kWh.

New onshore wind and solar energy projects are set to deliver electricity more cheaply than fossil fuels plants, with other green technologies also rapidly gaining a cost advantage over dirty fuels, a report published yesterday said. "This new dynamic signals a significant shift in the energy paradigm", said IRENA's Director-General, Adnan Amin, in a statement.

Quoting from a report on renewable power generation costs, Amin said the cost of utility-scale solar PV electricity has fallen by 73 per cent since 2010, and record low prices in Chile, Mexico, Peru, Saudi Arabia and the UAE have made Dollars 3 cents/kWh the new benchmark. The best onshore wind and solar photovoltaic projects could be delivering electricity for an equivalent of $3 cents per kWh, or less within the next two years.

Competitive procurement practices together with the emergence of a large base of experienced medium-to-large project developers competing for global market opportunities are cited as new drivers of recent cost reductions, in addition to continued technology advancements. "These cost declines across technologies are unprecedented and representative of the degree to which renewable energy is disrupting the global energy system".

The report was released on the first day of the eighth assembly of IRENA, which aims to be a global hub for renewable energy cooperation and information exchange by its member countries.

"At ADFD, we believe that through the large-scale promotion of renewable energy projects in countries with huge clean energy potential, we can contribute to long-term economic prosperity across the word. 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". IRENA projects that all renewable energy technologies will compete with fossils on price by 2020. The study found that new bioenergy and geothermal projects commissioned in 2017 had global weighted average costs of around seven U.S. cents per kWh. The report highlights that: • The global weighted average levelised cost of electricity (LCOE) of utility-scale solar PV has fallen by 73% between 2010 and 2017 to United States dollars 10 cents/kWh. 26 additional countries are in the accession process and actively engaged.