IRENA, 2013. - 92 p.As the world embarks on the transition to a truly sustainable energy future, the world’s renewable
resources and technologies increasingly offer the promise of cleaner, healthier and economically and
technically feasible power solutions and sustainable energy access for all. With over 100 gigawatts of
renewable power generation capacity added in 2011 alone, renewables have gone mainstream and are
being supported by a “virtuous circle” of increasing deployment, fast learning rates and significant, often
rapid, declines in costs.
Given the central role that transparent and up‑to‑date cost and performance data for renewable power
technologies play in the setting of policy support measures and investor decisions for renewables, the
lack of this data in the public domain represents a significant barrier to the accelerated deployment
of renewables.
This report provides the most current, comprehensive analysis of the costs and performance of renewable
power generation technologies available today. The results are largely based on new, original analysis of
around 8 000 medium‑ to large‑scale commissioned or proposed renewable power generation projects
from a range of data sources. The analysis provides simple, clear metrics based on the latest reliable
information, thereby helping to inform the current debate on renewable power generation and to assist
governments and private sector investors in their decision‑making.
The report highlights that renewables are increasingly becoming the most competitive option for
new grid supply and swift grid extension. Where electricity systems are dominated by oil‑fired plant,
cheaper—sometimes significantly cheaper—renewable generation choices are available. For off‑grid
power supply, renewables are already the default economic solution.
IRENA will extend its costing analysis in 2013 to include transport and stationary applications. It will also
launch the IRENA Renewable Costing Alliance to raise awareness of the importance of cost data. The
alliance will bring together government agencies, financial institutions, equipment manufacturers, project
developers, utilities and research institutions to provide data and feedback in support of IRENA’s cost
analyses of renewable energy technologies.
By reducing the uncertainty that currently surrounds renewable energy costs and performance, IRENA’s
cost analysis is aimed at assisting governments and regulators in their efforts to adopt more ambitious
policies to promote renewables in an evolving investment environment. I hope that this report makes
a valuable contribution in support of the global transition to a sustainable energy future.Contents
INTRODUCTION
Rationale for IRENA’s cost analysis
RENEWABLE POWER GENERATION COSTS: AN OVERVIEW
Renewable power generation costs by technology
Renewable power generation costs by region
The declining costs of renewables: Implications
GLOBAL RENEWABLE POWER MARKET TRENDS
Total installed renewable power generation capacity at the end of 2011
Annual new renewable capacity additions
WIND POWER
Wind power capital costs
Wind turbine costs
Total installed costs onshore
Total installed costs offshore
Capacity factors for wind power
Operations and maintenance costs
The levelised cost of wind electricity
HYDROPOWER
Hydropower capital costs
Hydropower electro-mechanical costs
Total installed costs
Capacity factors for hydropower
Operations and maintenance costs
The levelised cost of hydro electricity
SOLAR PHOTOVOLTAICS
Solar PV capital costs
Solar PV module prices
Balance of system costs
Total installed costs
Capacity factors for solar PV
The levelised cost of solar PV
CONCENTRATING SOLAR POWER
CSP capital costs
Operations and maintenance costs for CSP plants
Capacity factors for CSP
The levelised cost of CSP
BIOMASS FOR POWER GENERATION
Biomass feedstocks
Biomass-fired power generation capital costs by technology
Biomass-fired power generation operations and maintenance costs
Biomass-fired power generation capacity factors and efficiency
The levelised cost of electricity from biomass-fired power generation
GEOTHERMAL POWER GENERATION
Geothermal power generation installed costs
The LCOE of geothermal power generation
COST REDUCTIONS TO 2020
