Increasing economies of scale, more competitive supply chains and further technological improvements will continue reducing the costs of solar and wind power. The same factors will also boost the availability of these key renewable power sources at night and in varying weather conditions.
With the right policies in place, the cost of electricity from solar and wind power technologies could fall by at least 26% and as much as 59% between 2015 and 2025, finds this cost-analysis report from the International Renewable Energy Agency (IRENA).
The global weighted average cost of electricity could fall by 26% from onshore wind, by 35% from offshore wind, by at least 37% from concentrating solar power (CSP) technologies, and by 59% from solar photovoltaics (PV) by 2025, the report finds.
In energy markets around the world, rising competitive pressures that will drive continual innovation. While equipment costs will keep declining, reductions in balance-of-system, operation and maintenance and capital costs are becoming increasingly important drivers for overall cost reduction.