Abu Dhabi – Mubasher: The cost of renewable power generated from onshore wind has become equivalent to the cost of other power resources, the International Renewable Energy Agency (IRENA) said in report on Sunday.
The cost of onshore wind electricity declined by almost a quarter since 2010, with an average cost of $0.06 per kilowatt-hour (kWh) in 2017, the report entitled “Renewable Power Generation Costs in 2017” showed.
Similarly, solar photovoltaic (PV) module prices fell around 73% between 2010 and 2017, the data added.
On the back of further price declines expected for these and other green energy options, IRENA - which has more than 150 member countries - says all renewable energy technologies should be competitive on price with fossil fuels by 2020.
At a global level, onshore wind systems are now costing an average of $0.06 per kWh, while the cost of solar PV is fallen to $0.10 per kWh, the report showed.
In comparison, the cost of fossil fuel-generated electricity typically drops in a range of $0.05 to $0.17 per KwH, IRENA said.
Moreover, the organization forecasts the cost of solar power to fall further in the coming few years, with a further halving of typical costs by 2020.
"That means onshore wind and solar PV projects could be consistently delivering electricity for as little as $0.03 per kWh within two years," Forbes said, citing the report.
The energy sector will see significant shift, said director-general of IRENA Adnan Amin.
“These cost declines across technologies are unprecendented and representative of the degree to which renewable energy is disrupting the global energy system,” he added.
“The expected price falls for green energy will provide a fresh challenge to the market position of legacy fuels and to the countries that rely on them for export earnings, such as many Miiddle East states which have long looked to oil and gas sales as the bedrock of their economies,” Forbes reported.
If renewable energy has become capable of undercutting the cost of legacy fuels, then governments and large companies setting up new power plants will almost certainly turn to green energy for any new capacity, which in return will slash demand for oil, natural gas and coal, the American business magazine concluded.