Falling renewable power costs opens door to healthy environment

Bengaluru. May 29: Whole world is now looking at the renewable sources of energy. Many countries including US, China, India have huge plans to expand the solar and wind power plants. The best thing is the cost of renewable power is falling and same is opening the doors to greater climate ambition.

International Renewable Energy Agency (IRENA) has released it's latest report on the cost factor of renewable energy. According to the report the costs for renewable energy technologies decreased to a record low last year. The global weighted-average cost of electricity from concentrating solar power (CSP) declined by 26%, bioenergy by 14%, solar photovoltaics (PV) and onshore wind by 13%, hydropower by 12% and geothermal and offshore wind by 1%, respectively.

Onshore wind and solar PV costs between three and four US cents per kilowatt hour are already possible in areas with good resources and enabling regulatory and institutional frameworks. For example, record-low auction prices for solar PV in Chile, Mexico, Peru, Saudi Arabia, and the United Arab Emirates have seen a levelised cost of electricity as low as three US cents per kilowatt hour (USD 0.03/kWh).

Electrification on the basis of cost-competitive renewables is the backbone of the energy transformation and a key low-cost decarbonisation solution in support of the climate goals set out in the Paris Agreement.

Renewable power is the cheapest source of electricity in many parts of the world already today. The report strengthen this fact and opened the doors to the international discussion on raising climate action worldwide. This could be a point of talk in Abu Dhabi's global preparatory meeting for the United Nations Climate Action Summit in September.

IRENA's Director-General Francesco La Camera has said, "renewable power is the backbone of any development that aims to be sustainable. We must do everything we can to accelerate renewables if we are to meet the climate objectives of the Paris Agreement. Today's report sends a clear signal to the international community: Renewable energy provides countries with a low-cost climate solution that allows for scaling up action. To fully harness the economic opportunity of renewables, IRENA will work closely with our members and partners to facilitate on-the-ground solutions and concerted action that will result in renewable energy projects."