The cost of generating electrical power from clean energy such as wind and solar has declined swiftly in the past half-decade, limited the reliance on electricity derived from fossil fuels and nuclear reactors, according to International Energy Agency.
“The costs of renewable technologies — in particular solar photovoltaic — have declined significantly over the past five years,” the Paris-based IEA stated in a report called Projected Costs of Generating Electricity. “These technologies are no longer cost outliers.”
The average cost of generating the said baseload power that is present anytime from coal, natural gas and nuclear plants was about $100 per MWh for 2015 compared with about $200 for solar, which declined from $500 in 2010.
Those costs comprise offinance, fuel, maintenance and dismantling of the installations over their lifetimes and different between countries and facilities. For example, large-scale rooftop solar installations produce electricity for $311.77 perMWh in Belgium and $166.70 in sunnier Spain, the analysis indicates.
The International Energy Agency analysis appear as over 190 countries prepare to broker a new climate consensus in Paris in December to reduce greenhouse gas emissions from fossil fuels and coal. According to the values from 181 power stations in 22 nations, the survey ended that “no single technology is the cheapest under all circumstances and costs depend highly on available resources, labor costs and local regulations”.