Electricity from renewables will soon be consistently cheaper than from most fossil fuels, according to the International Renewable Energy Agency (Irena).
Its latest report, Renewable Power Generation Costs in 2017, said: “Already today, and increasingly in the future, many renewable power generation projects can undercut fossil fuel-fired electricity generation, without financial support. With the right regulatory and institutional frameworks in place, their competitiveness should only further improve.”
“Turning to renewables for new power generation is not simply an environmentally conscious decision, it is now – overwhelmingly – a smart economic one,” said Adnan Amin, Irena director-general.
The agency cited the £57.5/MWh strike price for offshore wind in the UK’s most recent Contracts for Difference auction as part of this trend. In a recent German auction, two offshore wind projects won with bids that did not ask for a subsidy over market rates.
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