The cost of generating power from
onshore wind has fallen by around a quarter since 2010, with solar PhotoVoltaic
(PV) electricity costs falling by 73 per cent in that time, according to new
cost analysis from the International Renewable Energy Agency (IRENA), reports NaijaAgroNet.
The IRENA study, NaijaAgroNet reports, highlighted
that solar PV costs are expected to halve by 2020, stressing that the best
onshore wind and solar PV projects could be delivering electricity for an
equivalent of USD 3 cents per kilowatt hour (kWh), or less within the next two
years.
Also, NaijaAgroNet reports that global
weighted average costs over the last 12 months for onshore wind and solar PV
now stand at USD 6 cents and USD 10 cents per kWh respectively, with
recent auction results suggesting future projects will significantly undercut
these averages.
According to the Executive Summary
of the study, onshore wind is now routinely commissioned for USD 4 cents per
kWh. The current cost spectrum for fossil fuel power generation ranges from
USD 5-17 cents per kWh.
The Director-General at IRENA, Adnan
Z. Amin, was quoted as saying, “This new dynamic signals a significant
shift in the energy paradigm. These cost declines across technologies are
unprecendented and representative of the degree to which renewable energy is
disrupting the global energy system."
The study, NaijaAgroNet gathered was recently released
on the first day of IRENA’s Eighth Assembly in Abu Dhabi on ‘Renewable Power Generation Costs in 2017’ highlights
that other forms of renewable power generation, such as bioenergy, geothermal
and hydropower projects in the last 12 months have competed head-to-head on
costs, with power from fossil fuels.
The findings, NaijaAgroNet reported, had noted
that by 2019, the best onshore wind and solar PV projects will be delivering
electricity for a USD 3 cents per kWh, significantly below the current cost of
power from fossil fuels.
NaijaAgroNet equally reports that for
IRENA, 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.
“Turning to renewables for new
power generation is not simply an environmentally conscious decision, it is now
– overwhelmingly – a smart economic one. 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,” Amin said.
Further, NaijaAgroNet reports that IRENA
study underscored that auction results are signaling that offshore wind and
concentrating solar power projects commissioned in the period between 2020-22
will cost in the range of USD 6-10 cents per kWh, supporting accelerated
deployment globally.
“IRENA projects that all renewable
energy technologies will compete with fossils on price by 2020,” he said.
Isaac Oyimah/GEE
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