Dramatic recent and projected falls in the costs of renewable energy are making it competitive with fossil fuels in countries across the world, and the least cost option in a growing number of markets, according to IRENA, the International Renewable Energy Agency.
In it's latest report, IRENA demonstrates the cost trends of various of Renewable sources and according to IRENA, the levelised cost of electricity (LCOE) is declining for wind, solar PV, CSP and some biomass technologies, while hydro power and geothermal electricity produced at good sites are still the cheapest way to generate electricity.
Renewable technologies are now the most economic solution for new capacity in an increasing number of countries and regions. Where oil-fired generation is the predominant power generation source (e.g. on islands, off-grid and in some countries) a lower- cost renewable solution almost always exists. Renewables are also increasingly the most economic solution for new grid-connected capacity where good resources are available. As the cost of renewable power drops, the scope of economically viable applications will increase even further.
As an example, c‑Si PV module prices have fallen by over 65% over the last two years and Chinese c‑Si PV modules in September 2012 were selling for just USD 0.75/watt. This is driving reductions in installed costs for residential PV systems, with installed costs in Germany for sub <100 kW rooftop systems falling by 65% between 2006 and 2012 to USD 2.2/W, making solar PV competitive with current residential electricity tariffs.The increasing size of global renewable markets and the diversity of suppliers has produced more competitive markets for renewable technologies.
LCOE of Various Power Sources
For those regions with significant remaining small hydro power potential, the weighted average LCOE for new small hydro power projects is between USD 0.032 and USD 0.07/kWh depending on the region, while for large hydro power the weighted average for a region is between USD 0.03 and USD 0.06/kWh assuming a 10% cost of capital.
Others
- For biomass, the weighted average LCOE for non‑OECD regions varies between USD 0.05 and USD 0.06/kWh.
- For geothermal, the weighted average LCOE by region is between USD 0.05 and USD 0.09/kWh, For onshore wind the range is between USD 0.08 and USD 0.12/kWh. CSP
- For Utility‑scale solar PV the weighted average LCOE is varying between USD 0.15 and USD 0.31/kWh.
- The weighted average LCOE for CSP for a region varies between USD 0.22 and USD 0.25/kWh
Article Published by
Suresh Krishnan
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