IEA, NEA study shows renewables LCOE keeps falling

A new study by the IEA and the NEA shows that the low-end levelised cost of electricity (LCOE) for some renewable energy technologies is the same or even below that for baseload power plants.

Of course, the high-end renewables LCOE remains far above the cost of nuclear, coal or natural gas power generation, but the progress green energy has made towards becoming more competitive is notable. The LCOE for nuclear, coal and gas has increased a bit since 2010, while for renewables such as wind and solar, it keeps falling.

The “Projected Costs of Generating Electricity” report again shows that onshore wind remains the cheapest renewable energy option. The IEA (International Energy Agency) and the NEA (Nuclear Energy Agency) say in the joint study that the cost of utility-scale solar photovoltaics (PV) and onshore wind is comparable and often lower in countries featuring plentiful resources and appropriate market and regulatory frameworks.

“No single technology proves the cheapest form of electricity generation under all circumstances,” the report says. It looks at over 180 renewable and non-renewable plants in 22 countries, including Brazil, China and South Africa.

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