Irena: cost of renewable energy plummets in 15 years and is expected to fall further
A survey carried out by Irena (International Agency for Renewable Energy) shows that total installed costs, that is, the value from start to finish of renewable energy generation projects, fell by 87% in a period of 15 years and should maintain the downward trend until 2035.
The research takes into account the period from 2010 to 2024 and, among its highlights, points out that photovoltaic solar energy fell 87% in the period, onshore wind energy fell 55% and battery storage systems became 93% less expensive.
The agency also indicates that, between 2020 and 2025, the average cost of firm renewable energy decreased from the level of US$100 per megawatt-hour to a range between US$54 and US$82/MWh in regions with high solar incidence and good wind corridors.
The organization also maintains good prospects for these types of electricity production in the next decade.
Irena's projection indicates a further reduction of around 30% by 2030 for the average price of energy from renewable sources and a potential drop of almost 40% by 2035, which could bring costs to the level of US$50 per megawatt-hour in the most efficient markets.
Competitive solution
The research draws attention to the discussion of renewable energy as an economically sustainable and competitive solution in the midst of the energy transition.
Daniel Maia, CEO of Athon, assesses that the data shows that "renewable energy is no longer just an environmentally sustainable alternative".
The executive points out that, given the reduction in costs and projections for an increasingly cheaper sustainable generation, these types of production "have also become an increasingly competitive solution from an economic point of view".
Still, technological challenges remain a point of attention for the sector.
"The next stage of the energy transition involves modernizing the operation of the electrical system, with smarter grids, battery storage and more advanced energy distribution management models", says Maia.
The CEO also highlights that this process is fundamental to increasing the flexibility and efficiency of the system and allowing the large-scale integration of renewable sources.
Maia also draws attention to Brazil's role in this scenario of advancing the energy transition and reducing costs for sustainable projects. "Brazil is capable of accelerating a new wave of expansion in the sector and consolidating its global leadership position in the energy transition", he states.
Source: CNN