The rapid deployment of renewable power generation technologies, combined with high learning rates, has driven down costs. This trend is projected to continue making renewables increasingly competitive with fossil fuels in countries across the world, and the least-cost option in a growing number of markets. The cost competitiveness is reflected in deployments in 2019 where renewables accounted for 72% of new capacity additions worldwide and have been between 173 GW – 178 GW in 2017, 2018 and 2019. The new installations in 2019 included 97 GW of solar photovoltaics (PV); 54 GW of onshore wind;        12 GW of hydropower; 6 GW of bioenergy for power; up to 5 GW of offshore wind; 0.7 GW of geothermal power; and 0.6 GW of concentrating solar power (CSP).

The cost competitiveness of renewable power has reached historic levels, with 56% of utility-scale capacity of renewables added in 2019 costing less than the cheapest new coal option. Utility-scale solar PV, biomass for power, hydropower, geothermal and onshore wind can all now provide electricity competitively compared to fossil fuels. Concentrating solar power and onshore wind are the much less deployed, but already auction results show they will also be competitive in the coming 2-4 years. Cost reductions for solar and wind power technologies will continue into the future, as further equipment and balance of plant cost reductions and performance improvements can be expected, which will lower the weighted-average levelized cost of electricity (LCOE) of renewables.

Consequently, renewable energy technologies now represent the most economical solution for new capacity in a growing number of countries and regions and are typically the most economical solution for new grid connected capacity, where suitable resources are available.

For more details on power generation developments and technology specific costs, performance and future trends, click on the applicable link below or to your right.

Power Generation:

Biomass | Solar Power | Geothermal | Hydropower | Wind | Battery Storage

Recent Publications

Renewable Energy Prospects for Central and South-Eastern Europe Energy Connectivity (CESEC)

Renewables could meet more than one-third of energy demand across Cent...

Reduce: Non-bio renewables

G20 countries can work together to step up renewable energy development and drive an accel...

Recycle: Bioenergy

Sustainable bioenergy could even out solar and wind variability and replace fossil fuels f...

Renewable Energy Outlook: Lebanon

This study examines the policy, regulatory, financial and capacity-related challenges to o...

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The Power to Change: Solar and Wind Cost Reduction Potential to 2025

Increasing economies of scale, more competitive supply chains and further technological improvements will continue reducing the costs of solar and wind power. The same factors will also boost the availability of these key renewable power sources at night and in varying weather conditions.

• June 2016
• |
• Costs, Power
• |
• English

Recent Publications

Renewable Power Generation Costs in 2019

IRENA’s latest global cost study shows solar and wind power reaching new price lows. The r...

Energy subsidies: Evolution in the global energy transformation to 2050

The energy sector lacks a standard definition of subsidies. This paper contribut...

Renewable Power Generation Costs in 2018

IRENA’s latest global cost study shows solar and wind power reaching new price ...

Sugarcane bioenergy in Southern Africa: Economic potential for sustainable scale-up

This study reviews the bioenergy potential from sugarcane and associated develop...

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