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

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Source:
International Renewable Energy Agency (IRENA)
Date:
1 June 2016

According to the authors of this this cost-analysis report, increasing economies of scale, more competitive supply chains and further technological improvements will continue reducing the costs of solar and wind power. They also argue the same factors will boost the availability of these key renewable power sources at night and in varying weather conditions. With the right policies in place, the cost of electricity from solar and wind power technologies could fall by 26 per cent to 59 per cent between 2015 and 2025. And, the global weighted average cost of electricity could fall by 26% from onshore wind, by 35% from offshore wind, by at least 37% from concentrating solar power (CSP) technologies, and by 59% from solar photovoltaics (PV) by 2025, according to the report. In energy markets around the world, rising competitive pressures that will drive continual innovation. While equipment costs will keep declining, reductions in balance-of-system, operation and maintenance and capital costs are becoming increasingly important drivers for overall cost reduction.