Abu dhabi: Solar and wind energy paired with battery storage are reliable and already today deliver cost-effective, round-the-clock electricity, according to a new report by the International Renewable Energy Agency (IRENA).
According to Emirates News Agency, the report titled "24/7 Renewables: The Economics of Firm Solar and Wind" confirms that in prime solar and wind regions, hybrid solutions combined with storage deliver round-the-clock power at lower costs than fossil fuels. Firm levelised costs of electricity ('firm costs') for solar plus storage range from USD 54 to USD 82 per megawatt-hour (MWh) in high-quality resource regions, compared with USD 70-85 per MWh for new coal in China and more than USD 100 per MWh for new gas globally.
Ant³nio Guterres, Secretary-General of the United Nations, highlighted the shift in energy dynamics, stating that the current energy crisis underscores the high cost of fossil fuel dependence. He emphasized the potential of renewables as the most affordable, reliable, and secure energy option, urging accelerated transition and investment in energy infrastructure to deliver clean power globally.
Francesco La Camera, IRENA Director-General, pointed out that 24/7 renewable power is now cost-competitive with fossil fuels, dispelling the argument of renewables lacking reliability. He noted that renewables now deliver reliable, round-the-clock power, with their strategic advantage strengthening resilience and energy security amid geopolitical shocks.
The report highlights the economic shift in the energy system due to advancements in battery technology, which have driven down costs significantly. These hybrid renewable solutions optimize grid connections, shift electricity production to higher-value hours, and reduce exposure to price volatility. They are well-suited for demanding electricity users like AI and data centers that require uninterrupted supply.
IRENA's analysis shows a rapid decline in firm costs, attributed to falling costs for solar PV, wind power, and battery storage. Since 2010, total installed costs for solar PV have declined by 87%, for onshore wind by 55%, and for battery storage by 93%. Construction timelines are also shortening, with projects typically being completed within one to two years.
The report projects further cost reductions across all three technologies due to continued technology learning, manufacturing scale, and supply chain integration. By 2025, firm costs for solar-plus-battery configurations are expected to fall to USD 54-82 per MWh, with further reductions projected by 2030 and 2035. Similar trends are observed for wind-plus-storage systems, with costs projected to decrease significantly by 2030.
The report "24/7 Renewables: The Economics of Firm Solar and Wind" provides a benchmark for evaluating and comparing the costs of round-the-clock renewable power, analyzing cost trends, drivers, and regional variations in hybrid solar, wind, and storage systems.