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Wednesday, 17 August 2016 17:00

Solar and wind electricity costs could fall 59% by 2025

Solar and wind electricity costs could fall 59% by 2025

The average costs for electricity generated by solar and wind technologies could decrease by up to 59 percent by 2025, according to the International Renewable Energy Agency's (IRENA) Wednesday report, Caspian Energy News (www.caspianenergy.net) reports.

The report finds that cost reductions in solar and wind technologies can continue with the right regulatory and policy frameworks as well as technology and market drivers in place.

“It estimates that by 2025, average electricity costs could decrease 59 percent for solar photovoltaics (PV), 35 percent for offshore wind, and 26 percent for onshore wind compared to 2015,” the report says.

 Additionally by 2025, the global average cost of electricity from solar PV and onshore wind will drop to roughly US$0.05 to $0.06 per kilowatt hour, IRENA estimates.

“Historically, cost has been cited as one of the primary barriers to switching from fossil-based energy sources to renewable energy sources, but the narrative has now changed,” IRENA Director-General Adnan Z. Amin said.

 Further cost reductions in solar and wind energy "will strengthen the compelling business case to switch from fossil fuels to renewables,” Amin added.

 Since 2009, prices for solar PV modules have fallen roughly 80 percent and by 30 to 40 percent in wind turbines, according to the report.

“Importantly for policy makers, cost reductions to 2025 will depend increasingly on balance of system costs, technology innovations, operations and maintenance costs and quality project management,” IRENA believes.

“The focus in many countries must therefore shift to adopting policies that can reduce costs in these areas,” IRENA argues.

Tags: IRENA / electricity /wind / solar

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