Round-the-clock renewable energy systems, combining solar, wind and battery storage, can deliver electricity at lower cost than new, fossil-fuel based systems, according to a report from the International Renewable Energy Agency (IRENA).

The report, entitled 24/7 renewables: The economics of firm solar and wind, examined the costs associated with hybrid renewable energy systems, and found that firm costs for solar plus storage range from $54 to $82 per MWh in high-quality resource regions.

This compares with $70 to $85 per MWh for new coal in China and more than $100 per MWh for new gas at a global level.

“24/7 renewable power is now cost-competitive with fossil fuels,” commented Francesco La Camera, director general, IRENA. “The long-standing argument that renewables lack reliability no longer holds. Today, renewables can deliver reliable, round‑the‑clock power.

“As oil and gas markets remain exposed to geopolitical shocks, including ongoing disruptions in the Strait of Hormuz, we must insulate our economies with resilient renewable systems. The economics of the entire energy system have shifted: the battery revolution has driven down costs while accelerating advances in storage.

“The advantage of renewables is not only economic but strategic, strengthening resilience, stability, and energy security in times of crisis.”

IRENA’s study also found that total installed costs for solar photovoltaic projects have fallen by 87% since 2010, while onshore wind has seen installed costs fall by 55% over the same period. Battery costs have seen an even more significant cost decline, of 93%.

It added that construction timelines are also shortening, with projects now typically completed within one or two years of securing permits and grid connection – faster than gas-powered equivalents.

Renewable energy costs could fall by a further 30% by 2030 and by approximately 40% by 2035, IRENA noted, with some projects expected to deliver electricity below $50 per megawatt-hour by the mid part of the next decade.

“The worst energy crisis in decades has exposed the true cost of fossil fuel dependence,” added António Guterres, secretary general of the United Nations. “But another path is now possible. Renewable power is increasingly the most affordable, reliable and secure option. Let us accelerate the transition, invest in energy infrastructure, and strengthen international cooperation to finally deliver clean, homegrown power to people everywhere.” Read more here.