Renewable energy systems are now cost-competitive with fossil fuels in many parts of the world, according to a new report from the International Renewable Energy Association (IRENA).
The new report - "Renewable Power Generation Costs 2014" - which was launched during IRENA'S fifth Assembly in Abu Dhabi, found that the economic gains for the renewable energy sector are most likely a result of falling installation costs and maturing technology.
The research found that renewables in the form of biomass, onshore wind, geothermal, and hydropower can all produce electricity within the same cost range or even better than their fossil fuel counterparts.
Although the current industry leader for renewable power is onshore wind, the report also found that cost of solar power is falling faster than any other renewable technology.
Between 2010 and 2014, the cost of solar PV has halved, and the technology is proving especially popular with businesses because of its easy installation and maintenance.
The cost of fossil fuel generation is estimated between 0.07 and 0.19/kWh, factoring in environmental and health costs, while utility sized solar projects are able to produce power for prices as low as 0.06/kWh.
Some renewables, such as offshore wind and concentrated solar power are still more expensive than fossil fuel options. With these technologies still in their infancy, however, their prices are projected to drop in the future.
IRENA's report also finds that renewables are the best option for bringing power to the 1.3 billion people worldwide who are currently living without access to electricity, as well as isolated island populations that rely on diesel generators.
And the dramatic decline in oil prices - 60% since last summer - is unlikely to douse the success of renewables, with investments in the clean energy sector expected to continue, according to IRENA.
The report said:
Oil prices remain volatile, so for an investment with a lifetime of 25 years or more, today's oil prices are not an accurate measure on which to base an investment decision in electricity generation.
In addition to the report, IRENA and the Abu Dhabi Fund for Development announced 57 million in loans for renewable energy projects in developing countries.
Credit: cleanpowerlife.blogspot.com
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