Paris, Jan 13 (AFP) New onshore wind and solar energyprojects are set to deliver electricity more cheaply thanfossil fuels plants, with other green technologies alsorapidly gaining a cost advantage over dirty fuels, a reportpublished today said.
According to a new cost analysis from the InternationalRenewable Energy Agency (IRENA), within two years "all therenewable power generation technologies that are now incommercial use are expected to fall within the fossil fuel-fired cost range, with most at the lower end or undercuttingfossil fuels".
It expects renewables will cost between three and 10 UScents per kilowatt hour (kWh) by 2020, while the current costspectrum for fossil fuel power generation ranges from five to17 US cents per kWh.
"This new dynamic signals a significant shift in theenergy paradigm," said IRENA's Director-General, Adnan Amin,in a statement.
"Turning to renewables for new power generation is notsimply an environmentally conscious decision, it is now --overwhelmingly -- a smart economic one," he added.
Continued technological advancements are not the onlyfactor helping drive down prices. The report found that themarket was becoming more competitive and a number ofexperienced project developers had emerged in the sector.
The best onshore wind and solar PV projects are expectedto deliver electricity for three US cents or less by nextyear.
But onshore wind and solar are not the only sectorsbecoming more competitive rapidly. The study found that newbioenergy and geothermal projects commissioned in 2017 hadglobal weighted average costs of around seven US cents perkWh.
IRENA said auction results suggest that two othertechnologies --concentrating solar power (CSP) and offshorewind -- will provide electricity for between 6-10 US cents perkWh by 2020.
"These cost declines across technologies areunprecedented and representative of the degree to whichrenewable energy is disrupting the global energy system," saidAmin.
The report was released on the first day of the eighthassembly of IRENA, which aims to be a global hub for renewableenergy cooperation and information exchange by its 154 membercountries. (AFP)CPS.
This is unedited, unformatted feed from the Press Trust of India wire.