Worldwide LCOE of utility-scale solar fell 13% in 2021, IRENA states

Jul 15, 2022 06:48 PM ET
  • Solar PV costs continued to decline internationally in 2021 as supply chain challenges and also climbing product costs have yet to show their complete effect on project expenses.
Worldwide LCOE of utility-scale solar fell 13% in 2021, IRENA states
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That is according to a new report from the International Renewable Energy Agency (IRENA), which revealed the global heavy ordinary levelised price of electrical power (LCOE) of new utility-scale solar PV projects commissioned in 2021 fell by 13% year-on-year to US$ 0.048/ kWh.

The quick decline in complete mounted prices, boosting capacity factors and also falling O&M expenses have added to an amazing reduction in the price of power from solar PV as well as to its enhancing financial competition, the report claimed.

Nevertheless, following a years of continuous decline, solar module prices in 2021 climbed as supply chain disruptions caused greater product expenses, or lower schedule. The report exposed that the rate of crystalline PV modules in Europe boosted between 4-- 7% in 2021 compared to 2020.

A systemic factor to this increase has actually been the climbing cost of polysilicon, which has jumped dramatically in current weeks.

Not all products boost have been passed through into equipment prices and also project prices yet, according to IRENA, which stated that depending upon products costs as well as various other supply chain stress over the rest of this year, solar module prices could average a fifth more than they did in 2020.

Despite existing supply chain concerns, IRENA stated solar and wind, with their reasonably brief project preparation, stand for "important planks" in nations' efforts to promptly minimize, as well as at some point terminate, fossil fuels and also limit the macroeconomic problems they trigger in search of net zero.

" 2022 is a plain example of just how economically practical new renewable power generation has become," claimed Francesco La Camera, director-general at IRENA. "Renewable power frees economies from unpredictable fossil fuel costs and also imports, curbs energy costs as well as boosts market durability-- much more so if today's power crunch continues."

High coal and also fossil gas costs in 2021 and also 2022 will certainly likewise greatly deteriorate the competitiveness of fossil fuels and also make solar and also wind much more attractive, the research study located.

IRENA claimed that fuel as well as carbon dioxide costs for existing gas plants in Europe may balance four to six times a lot more in 2022 than the lifetime expense of new solar PV as well as onshore wind commissioned in 2021.

A report published previously this year by power major bp forecasted that the LCOE of solar globally might fall by as much as 55% by 2030.

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