The cost of electricity from wind continues to fall, driven by declines in wind turbine prices - prices have fallen by between 44%-78% from their peaks between 2007 and 2010 – balance of plant cost reductions and wind turbine technology improvements, especially larger rotor diameters and higher hub-heights, that mean more energy can be harvested from sites with the same wind speeds.

The global weighted-average cost of electricity of new onshore wind farms in 2019 was USD 0.053/kWh with country/region values of between USD 0.051 and USD 0.099/kWh depending on the region. Costs for the most competitive projects are now as low USD 0.030/kWh, without financial support. Costs are set to continue to decline, with no slowing in wind turbine price declines yet in evidence; continuing advancements in wind turbine technology (resulting in higher energy yields and thus capacity factors), economies of scale and O&M cost reductions.

Offshore wind, with deployment of around 28 GW in 2019 compared to onshore wind with 594 GW,      was relatively more expensive than onshore wind but costs have declined from the peak in 2014 to          USD 0.115/kWh in 2019, although the weighted-average cost in 2019 in Denmark was USD 0.087/kWh. Cost reductions have been driven by the growing maturity of the industry; the growing competitiveness of the market driven by competitive auctions in both established and new markets; establishment of mature supply chains in regional hubs, economies of scale; and advancements in wind turbine technology driving higher capacity factors and reducing installation costs. These cost reductions have been achieved despite the increasing complexity of projects located farther offshore, in deeper waters with harsher meteorology and oceanography conditions.

Biodiesel

Bioethanol

Biomass

Biomethane

CSP

Electric vehicles

Geothermal

Hydropower

Plug-in hybrid electric vehicles (PHEVs)

Power Generation

Solar photovoltaic

Transport Section

Wind

The Power to Change: Solar and Wind Cost Reduction Potential to 2025

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.

• June 2016
• |
• Costs, Power
• |
• English

Recent Publications

Renewable Power Generation Costs in 2019

IRENA’s latest global cost study shows solar and wind power reaching new price lows. The r...

Energy subsidies: Evolution in the global energy transformation to 2050

The energy sector lacks a standard definition of subsidies. This paper contribut...

Renewable Power Generation Costs in 2018

IRENA’s latest global cost study shows solar and wind power reaching new price ...

Sugarcane bioenergy in Southern Africa: Economic potential for sustainable scale-up

This study reviews the bioenergy potential from sugarcane and associated develop...

More

Related Content

Making Green Hydrogen a Cost-Competitive Climate Solution

17 December 2020 | Press Releases

Countries Raise the Sails on Offshore Renewables Sector

18 October 2020 | Articles

IRENA’s Collaborative Framework to Prepare Countries for High-Shares of Renewables

01 October 2020 | Articles