IRENA Report on Renewable Power Generation Costs in 2021

International Renewable Energy Agency (IRENA) has published this research report titled Renewable Power Generation Costs in 2021. In 2021, the cost-effectiveness of renewable energy increased further. Their crucial role in the transition to an economical and technically achievable net zero future is confirmed by data from the IRENA Renewable Cost Database and analysis of current trends in the electricity sector.

In 2021, the newly launched global weighted average costs of onshore and offshore wind power projects as well as solar photovoltaics (PV) decreased. The capacity factors increased in 2021 despite growing commodity and renewable equipment prices, especially for onshore wind, because there is a noticeable lag before these Renewable Power Generation Costs increases are reflected in project total installed costs.

The new utility-scale solar PV projects that were commissioned in 2021 had a 13% year-over-year decrease in their global weighted average levelized cost of electricity (LCOE), from USD 0.055/kWh to USD 0.048/kWh. The deployment of concentrating solar power (CSP) remains restricted, and cost fluctuations from year to year are unpredictable, with only one CSP plant coming online in 2021 and two in 2020. The average cost of electricity from the new CSP plant was almost 7% more than the average in 2020, with this disclaimer in mind.