The cost of generating power from onshore wind has fallen by around a quarter since 2010 according to new cost analysis from the International Renewable Energy Agency (IRENA) published in the report, Renewable Power Generation Costs in 2017. The best onshore wind projects could be delivering electricity for an equivalent of USD 3 cents per kilowatt hour (kWh), or less within the next two years.
Global weighted average costs over the last 12 months for onshore wind now stand at USD 6 cents per kWh, with recent auction results suggesting future projects will significantly undercut these averages. The report highlights that onshore wind is now routinely commissioned for USD 4 cents per kWh. The current cost spectrum for fossil fuel power generation ranges from USD 5-17 cents per kWh. Competitive procurement practices together with the emergence of a large base of experienced medium-to-large project developers competing for global market opportunities, are cited as new drivers of recent cost reductions, in addition to continued technology advancements. The report was launched during the eighth IRENA Assembly, which welcomes more than 1,100 representatives of governments from 150 countries.
