In 2021, the global cost of renewable energy generation will decline despite price increases. IRENA Report
IRENA has released a report on the levelized cost of electricity (LCOE) for renewable energy in 2021. According to the report, LCOE decreased from the previous year for both solar and onshore/offshore wind, despite rising prices.
13% reduction in solar power generation costs
Some are below the cost of coal-fired power
According to the report "Renewable Power Generation Costs in 2021" released in July by the International Renewable Energy Agency (IRENA), the levelized cost of electricity (LCOE) of renewable energy in the world is , compared to 2020, solar PV fell by 13%, onshore wind by 15% and offshore wind by 13%. This means that the LCOE fell despite the supply chain and price increases.
The addition of 257 GW of renewable energy in 2021 is expected to reduce global power generation costs by approximately US$55 billion (approximately ¥7.48 trillion) in 2022. Notably, the cost of generating 163 GW of newly installed renewable energy in 2021, about two-thirds, will be below the cost of the cheapest coal-fired power plants in G20 countries and regions. It's a dot.
IRENA notes that the relatively short lead times for solar and wind power generation make them “an important part of countries' efforts to minimize macroeconomic damage” in achieving carbon neutrality. pillars,” he pointed out.
As global resource prices continue to soar
The advantage of renewable energy increases
From 2021 to 2022, the prices of resources such as coal and gas soared globally. This has made fossil fuels much less competitive than renewables, IRENA said, giving the advantage of solar and wind power. Especially in Europe, where natural gas prices have skyrocketed to unprecedented levels, the construction of new natural gas-fired power plants could become more uneconomical over the life cycle, leading to stranded assets. argue that there is an increased risk of
However, the IRENA report does not reflect all the rising costs of raw materials in the supply chain. Therefore, if the cost of raw materials continues to rise in the future, it is thought that the power generation cost of renewable energy in 2022 will also be affected. However, compared to soaring fossil fuel prices, the cost competitiveness of renewable energy is increasing, so there is a possibility that the increase in the LCOE of renewable energy will be suppressed.
