IRENA: ‘Most renewables now cost less than cheapest fossil fuel options’

Concentrating solar power and onshore wind recorded the largest drops in costs last year, according to a new report

Big Zero Report 2022

Nearly 62% of total renewable power generation added last year had lower costs than the cheapest new fossil fuel options.

A new report by the International Renewable Energy Agency (IRENA) suggests costs of renewable energy technologies continued to fall year-on-year in 2020 with the global weighted-average levelised cost of electricity (LCOE) from new capacity additions of concentrating solar power declined by 16%.

Last year. new onshore wind installations recorded a 13% cost reduction compared to 2019, followed by offshore wind with a 9% fall and utility-scale solar PV by 7%.

IRENA also forecasts the new renewable projects installed last year would bring a saving of around $156 billion (£111bn) over their lifespan.

IRENA’s Director-General Francesco La Camera said: “Today, renewables are the cheapest source of power.

Renewables present countries tied to coal with an economically attractive phase-out agenda that ensures they meet growing energy demand, while saving costs, adding jobs, boosting growth and meeting climate ambition.”

If you enjoyed this story you can sign up to our weekly email for Energy Live News – and if you’re interested in hearing more about the journey to net zero by 2050, you can also sign up to the future Net Zero newsletter. 

Latest Podcast