As the cost associated with onshore wind and solar photovoltaic (PV) has seen a reduction since 2010, a report by the International Renewable Energy Agency (IRENA) is forecasting an even more significant drop as 2020 approaches.
IRENA’s report claims that onshore wind costs could halve by 2020, with onshore wind dropping alongside it.
The report, released over the weekend, claims that as renewable energy has competed head-to-head on cost with fossil fuel energy, its new findings show renewables will out compete fossil fuel on cost and efficiency.
Adnan Z. Amin, IRENA director-general, said: “This new dynamic signals a significant shift in the energy paradigm. These cost declines across technologies are unprecedented and representative of the degree to which renewable energy is disrupting the global energy system.”
In a statement IRENA claim 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’.
IRENA estimate that ‘all renewable energy technologies’ will compete head on with fossil fuels by 2020.
Mr Amin added: “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.”
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