Renewables remained the most cost-competitive option for new electricity generation in 2024, with 91 per cent of newly commissioned utility-scale capacity delivering power at a lower cost than the cheapest newly installed fossil fuel-based alternative, according to IRENA’s new report on Renewable Power Generation Costs in 2024.

In 2024, new utility-scale onshore wind projects remained the cheapest source of renewable electricity, with a global weighted average levelised cost of electricity (LCOE) of $0.034/per kWh.

Renewables helped avoid $467 billion in fossil fuel costs in 2024, reinforcing their role as the lowest-cost source of new power and a key driver of energy security, economic stability, and resilience in a volatile global energy landscape , the report said.

Between 2010 and 2024, total installed costs (TIC) declined sharply across major renewable technologies.

By 2024, TIC fell to $691/kW for solar PV, $1,041/kW for onshore wind, and $2,852/kW for offshore wind.

LCOE increased slightly for some technologies over 2023, but costs declined for concentrated solar power (CSP), geothermal, bioenergy, and hydropower. Battery storage costs declined by 93 per cent from 2010 to 2024.

Over the next five years, global total installed costs are expected to reach approximately $388/kW for solar PV, $861/kW for onshore wind, and $2,316/kW for offshore wind, it noted.

Financing costs remain a key determinant of renewable project viability, with capital costs shaped by factors such as revenue certainty, capital structure, and macroeconomic conditions.

In 2024, global renewable power capacity additions reached an unprecedented 582GW, representing a 19.8 per cent increase compared to the capacity additions delivered in 2023.

However, current deployment levels fall short of that required to triple renewable energy capacity by 2030.

Meeting this goal requires rapid scale-up in deployment and substantial investment in enabling infrastructure, particularly grid expansion and energy storage, the report said.