Renewable Energy Achieves Cost Parity with Fossil Fuels Through 24/7 Supply Solutions
Renewable energy sources that can supply electricity around the clock are now competing directly with fossil fuels in terms of cost according to the International Renewable Energy Agency IRENA. The organisation highlights the potential of hybrid solutions that combine solar wind and battery storage to enable a reliable renewable power supply.
In its report titled 24 Hour Renewables The Economic Feasibility of Constant Solar and Wind Energy IRENA states that these technologies could provide a continuous energy supply at costs lower than traditional fossil fuel sources in regions rich in solar and wind resources. Fixed levelised costs of electricity for solar systems with storage are estimated to range between 54 and 82 US dollars 46 to 70 pounds per megawatt hour MWh compared to 70 to 85 dollars 60 to 72 pounds for new coal plants in China and over 100 dollars 85 pounds for new gas plants globally.
UN Secretary General Antonio Guterres emphasised that the current energy crisis has exposed the real costs of dependence on fossil fuels affirming that renewable energy is now the most affordable reliable and secure option. IRENA s Director General Francesco La Camera added that 24 7 renewable energy is now cost competitive with fossil fuels citing advances in storage technology that dispel previous reliability concerns.
The report underlines that these solutions optimise limited grid infrastructure reduce exposure to volatile fuel prices and can power sectors with high continuous demand such as data centres and artificial intelligence applications. Significant reductions in installation costs have also been achieved with decreases of up to 87 for solar photovoltaic 55 for onshore wind and 93 for battery storage since 2010.
Forecasts suggest further cost reductions of up to 30 by 2030 and around 40 by 2035 potentially bringing prices below 50 dollars 42 pounds per MWh in the most efficient locations. Construction times have also shortened generally between one to two years post permit approval placing these solutions ahead of new gas plants in many markets.
With 171 countries as members IRENA leads international efforts to accelerate renewable transition supporting sustainable development energy security and economic resilience across the globe.