Global renewable energy costs fall to record lows in 2018: IRENA report

A new report from the International Renewable Energy Agency (IRENA) has found that renewable energy is the cheapest source of electricity in many parts of the world today, following another year of falling costs across the sector.

IRENA’s ‘Renewable Power Generation Costs in 2018’ report said that the global weighted average cost of electricity from solar photovoltaics (PV) and onshore wind fell by 13%, hydropower by 12% and geothermal and offshore wind dropped by 1%.

The report added that cost reductions, particularly for solar and wind, are set to continue into the next decade, strengthening the business case for renewables and solidifying its role as the engine of the global energy transformation.

IRENA’s global database also revealed that over 75% of onshore wind and 80% of solar PV that is due to be commissioned next year will produce electricity at lower prices than the cheapest new coal, oil or natural gas options.

“Renewable power is the backbone of any development that aims to be sustainable,” said IRENA’s director-general Francesco La Camera. “We must do everything we can to accelerate renewables if we are to meet the climate objectives of the Paris Agreement.

“Today’s report sends a clear signal to the international community: Renewable energy provides countries with a low cost climate solution that allows for scaling up action.”