The average costs for electricity generated by solar and wind technologies could decrease by between 26% and 59% per cent by 2025, according to a report released today by the International Renewable Energy Agency (IRENA).
The report “The Power to Change: Solar and Wind Cost Reduction Potential to 2025” finds that with the right regulatory and policy frameworks in place, solar and wind technologies can continue to realise cost reductions to 2025 and beyond. The report also estimates that by 2025 average electricity costs could decrease 59% for PV, 35% for offshore wind, and 26% for onshore wind compared to 2015.
Electricity prices for CSP could also decrease as much as 43%, depending on the technology used. By 2025, the global average cost of electricity from solar PV and onshore wind will be roughly 5 to 6 US cents per kilowatt hour.
The report is the first of several solar-focused publications IRENA will release this summer. Future reports include “Letting in the Light: How Solar Photovoltaics Will Revolutionize the Electricity System” and a report on end-of-life management for solar PV panels. Both reports will launch at this year’s Intersolar Europe in Munich (21-24 June).