Onshore wind has fallen by 23 percent in the same timeframe. Based on projects that have been auctioned and will be in development over the coming years, renewable energy will end up being competitive or even cheaper than fossil fuels by 2020. Auction prices for solar photovoltaic and onshore wind projects have reached a record-low three pence per kWh in places like Dubai, Mexico, Chile, Brazil, Canada, and Germany.
“Electricity from renewables will soon be consistently cheaper than from most fossil fuels,” the agency noted in their executive summary
. “By 2020, all the renewable power generation technologies that are now in commercial use are expected to fall within the fossil fuel-fired cost range, with most at the lower end or undercutting fossil fuels.”
Bigger turbines will create more wind power, and the indeterminacy of both sources can be optimized with large-scale battery backup facilities. Competitive procurement through auctions has continued to lower the bar and set records throughout last year. While we’ll still see rates reach three pence per kWh, the average by 2020 is expected to be around five cents for onshore wind and six cents for solar photovoltaic auctions.
Even though much of the focus was on solar and wind, hydropower, bioenergy, and geothermal sources were all part of the ongoing process to make renewable energy a more viable option. According to the study, over £1 trillion
has been invested into this industry worldwide and it has created around 10 million job opportunities.