Image Source: International Renewable Energy Agency (IRENA )

A new report shows that round-the-clock renewable energy is now cost-competitive with fossil fuels in several regions. The study by International Renewable Energy Agency highlights falling costs for solar, wind, and battery storage systems. These hybrid systems can deliver continuous electricity supply at competitive prices.

Renewable Power Becomes Cost-Effective Alternative

According to the report, firm electricity costs for solar combined with battery storage range between USD 54 and USD 82 per megawatt-hour (MWh) in high-resource regions. This compares with USD 70–85 per MWh for new coal projects in China and over USD 100 per MWh for new gas plants globally. The findings indicate that renewable energy can now provide stable power at lower costs than traditional fossil fuels.

The report also notes that combining wind, solar, and storage reduces system costs further. Complementary energy generation lowers the need for extensive storage and improves efficiency. This trend is expected to continue as technology advances.

Image Source: International Renewable Energy Agency (IRENA) | LCOE and Firm LCOE at 95% reliability

Rapid Decline in Technology Costs Drives Shift

IRENA data shows significant cost reductions since 2010. Solar photovoltaic costs have fallen by 87 percent, while onshore wind costs dropped by 55 percent. Battery storage costs saw the sharpest decline at 93 percent. These reductions have enabled the development of reliable 24/7 renewable systems.

Construction timelines for renewable projects are also shorter. Most projects are completed within one to two years after approvals. This is faster than many fossil fuel-based power plants.

Future Projections Indicate Further Cost Reductions

The report projects that renewable energy costs will continue to decline. Firm renewable energy costs could fall by around 30 percent by 2030 and up to 40 percent by 2035. In optimal locations, costs may drop below USD 50 per MWh.

The study also highlights the role of renewable energy in supporting energy-intensive sectors such as data centers and artificial intelligence operations. These sectors require uninterrupted power supply, which hybrid renewable systems can provide.