Fossil Fuels blown away by wind in cost terms: study

New onshore wind and solar energy projects are set to deliver electricity more cheaply than fossil fuels plants, with other green technologies also rapidly gaining a cost advantage over dirty fuels, a report published Saturday said.

  • Published:
There is a bright future for wind and solar power as they are rapidly becoming cheaper than fossil fuel electricity plants, according to a new study. play

There is a bright future for wind and solar power as they are rapidly becoming cheaper than fossil fuel electricity plants, according to a new study.

(AFP/File)
24/7 Live - Subscribe to the Pulse Newsletter!

New onshore wind and solar energy projects are set to deliver electricity more cheaply than fossil fuels plants, with other green technologies also rapidly gaining a cost advantage over dirty fuels, a report published Saturday said.

According to a new cost analysis from the International Renewable Energy Agency (IRENA), within two years "all the renewable power generation technologies that are now in commercial use are expected to fall within the fossil fuel-fired cost range, with most at the lower end or undercutting fossil fuels".

It expects renewables will cost between three and 10 US cents per kilowatt hour (kWh) by 2020, while the current cost spectrum for fossil fuel power generation ranges from five to 17 US cents per kWh.

"This new dynamic signals a significant shift in the energy paradigm," said IRENA's Director-General, Adnan Amin, in a statement.

"Turning to renewables for new power generation is not simply an environmentally conscious decision, it is now -- overwhelmingly -- a smart economic one," he added.

Continued technological advancements are not the only factor helping drive down prices. The report found that the market was becoming more competitive and a number of experienced project developers had emerged in the sector.

The best onshore wind and solar PV projects are expected to deliver electricity for three US cents or less by next year.

But onshore wind and solar are not the only sectors becoming more competitive rapidly. The study found that new bioenergy and geothermal projects commissioned in 2017 had global weighted average costs of around seven US cents per kWh.

IRENA said auction results suggest that two other technologies --concentrating solar power (CSP) and offshore wind -- will provide electricity for between 6-10 US cents per kWh by 2020.

"These cost declines across technologies are unprecedented and representative of the degree to which renewable energy is disrupting the global energy system," said Amin.

The report was released on the first day of the eighth assembly of IRENA, which aims to be a global hub for renewable energy cooperation and information exchange by its 154 member countries.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 Silicon Valley Apple-Samsung iPhone design copying case goes to jurybullet
2 Video Ghanaian Harvard student openly ‘assaulted’ by Policebullet
3 In Berlin Hitler definitely died in 1945 according to new study of...bullet
4 Former Dictator Gambia selling Jammeh's luxury cars, planes to pay...bullet
5 Moon Jae-in Trump-Kim summit in play as South Korean President...bullet
6 European Union As EU privacy law looms, debate swirls on...bullet
7 In Miami-Dade Florida police shoot gunman at Trump-owned...bullet
8 Roman Abramovich Chelsea owner 'waiting for UK visa': reportbullet
9 Breaking News Winnie Mandela has diedbullet
10 North Korea Country demands Seoul return waitress...bullet

Top Videos

1 In Togo Women go topless to demand resignation of Presidentbullet
2 Video Ghanaian Harvard student openly ‘assaulted’ by Policebullet
3 Holy Fake News Pope says serpent temptation in Bible ‘first fake news’bullet
4 Shithole Comment US lawmakers wear Ghana's 'kente' to protest...bullet
5 Sex Robot Meet Solana, a sex robot with removable face and...bullet
6 Donald Trump Africans respond to President Trump after...bullet
7 Super Surprising Saddam Hussein wrote a romantic novel and...bullet
8 Olympics News Samsung unveils special edition Galaxy Note...bullet

World