IRENA report says solar, wind and battery storage can provide continuous power at lower cost than new fossil fuel plants in some regions
The Facts
- IRENA published a report saying solar and wind paired with battery storage can deliver reliable, continuous electricity.
- According to the report, in prime solar and wind regions, hybrid renewable systems with storage can provide round-the-clock power at lower cost than fossil fuels.
- IRENA said firm levelized electricity costs for solar-plus-storage are about $54 to $82 per MWh in high-quality resource regions.
- Those cost estimates were compared with about $70 to $85 per MWh for new coal in China and more than $100 per MWh for new gas globally.
- Multiple reports citing IRENA said installed costs have fallen sharply since 2010, including an 87% decline for solar PV and a 55% decline for onshore wind.
- Sources citing the IRENA report also said battery storage costs have fallen by about 93% since 2010, helping reduce the cost of firm renewable electricity.
- The report matters because it addresses the cost of dispatchable or firm electricity, not just intermittent generation, using a metric for continuous power from hybrid renewable systems.
- The findings are framed as applying to high-quality or prime solar and wind regions, leaving open how broadly the same cost advantage applies in areas with weaker renewable resources.
Context
What did IRENA compare in this report?
IRENA compared the cost of continuous, or firm, electricity from hybrid systems that combine solar PV or wind with battery storage against the cost of new fossil-fuel generation PV Tech,edie.net. Its cited benchmark for solar-plus-storage in strong resource regions was $54-$82 per MWh, versus $70-$85 per MWh for new coal in China and more than $100 per MWh for new gas globally Anadolu Ajansı,Engineering News.
Why are these renewable systems becoming cheaper?
Sources citing the report say the main driver is the long-term drop in technology costs: since 2010, installed costs fell 87% for solar PV, 55% for onshore wind, and about 93% for battery storage Ambito,pv magazine Interna…,edie.net. Those declines have lowered the cost of combining generation and storage into systems that can supply electricity more consistently Prensa latina,PV Tech.
Does the report say this is true everywhere?
No. The coverage consistently says the lowest-cost results apply in prime or high-quality solar and wind regions, where renewable resources are strongest Anadolu Ajansı,pv magazine Interna…,El Periódico de la …. The sources provided do not establish that the same cost relationship already holds in all markets or locations Anadolu Ajansı,El Periódico de la ….
Where Left and Right agree, and where they split
- Where Left and Right agree
- The meaningful shift is that the comparison is about firm, continuous electricity: in prime solar and wind regions, hybrid renewable systems with storage can now provide dependable power at costs that compete with or beat new fossil generation.
- Where Left and Right split
- Less a disagreement than a question of emphasis: the breakthrough that renewables can now pair affordability with reliability, versus the geographic limits on where that cost advantage for dispatchable power can confidently be assumed.
How left and right read it
What stands out here is that the report is about firm, continuous electricity, not just intermittent generation. If solar and wind paired with storage can deliver reliable power at lower cost than fossil fuels in prime regions, after steep cost declines since 2010, that strengthens the case for building around technologies that can provide both affordability and dependable service.
The key point is that this is a cost comparison for dispatchable power, but only in high-quality solar and wind regions. That makes the finding economically important without settling every market: if hybrid systems with storage are now cheaper there than new coal in China and new gas globally, planners still need to pay close attention to where that advantage actually holds.
The receipts — all 26 sources
Independent coverage (26)
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