Amin Renewable Power Generation Costs in 2012: An Overview

Description

IRENA, 2013. - 92 p.As the world embarks on the transition to a truly sustainable energy future, the world’s renewableresources and technologies increasingly offer the promise of cleaner, healthier and economically andtechnically feasible power solutions and sustainable energy access for all. With over 100 gigawatts ofrenewable power generation capacity added in 2011 alone, renewables have gone mainstream and arebeing supported by a “virtuous circle” of increasing deployment, fast learning rates and significant, oftenrapid, declines in costs. Given the central role that transparent and up‑to‑date cost and performance data for renewable powertechnologies play in the setting of policy support measures and investor decisions for renewables, thelack of this data in the public domain represents a significant barrier to the accelerated deploymentof renewables. This report provides the most current, comprehensive analysis of the costs and performance of renewablepower generation technologies available today. The results are largely based on new, original analysis ofaround 8 000 medium‑ to large‑scale commissioned or proposed renewable power generation projectsfrom a range of data sources. The analysis provides simple, clear metrics based on the latest reliableinformation, thereby helping to inform the current debate on renewable power generation and to assistgovernments and private sector investors in their decision‑making. The report highlights that renewables are increasingly becoming the most competitive option fornew grid supply and swift grid extension. Where electricity systems are dominated by oil‑fired plant,cheaper—sometimes significantly cheaper—renewable generation choices are available. For off‑gridpower supply, renewables are already the default economic solution.IRENA will extend its costing analysis in 2013 to include transport and stationary applications. It will alsolaunch the IRENA Renewable Costing Alliance to raise awareness of the importance of cost data. Thealliance will bring together government agencies, financial institutions, equipment manufacturers, projectdevelopers, utilities and research institutions to provide data and feedback in support of IRENA’s costanalyses of renewable energy technologies. By reducing the uncertainty that currently surrounds renewable energy costs and performance, IRENA’scost analysis is aimed at assisting governments and regulators in their efforts to adopt more ambitiouspolicies to promote renewables in an evolving investment environment. I hope that this report makesa valuable contribution in support of the global transition to a sustainable energy future.ContentsINTRODUCTION Rationale for IRENA’s cost analysis RENEWABLE POWER GENERATION COSTS: AN OVERVIEW Renewable power generation costs by technology Renewable power generation costs by region The declining costs of renewables: Implications GLOBAL RENEWABLE POWER MARKET TRENDS Total installed renewable power generation capacity at the end of 2011 Annual new renewable capacity additions WIND POWER Wind power capital costs Wind turbine costs Total installed costs onshore Total installed costs offshore Capacity factors for wind power Operations and maintenance costs The levelised cost of wind electricity HYDROPOWER Hydropower capital costs Hydropower electro-mechanical costs Total installed costs Capacity factors for hydropower Operations and maintenance costs The levelised cost of hydro electricity SOLAR PHOTOVOLTAICS Solar PV capital costs Solar PV module prices Balance of system costs Total installed costs Capacity factors for solar PV The levelised cost of solar PV CONCENTRATING SOLAR POWER CSP capital costs Operations and maintenance costs for CSP plants Capacity factors for CSP The levelised cost of CSP BIOMASS FOR POWER GENERATION Biomass feedstocks Biomass-fired power generation capital costs by technology Biomass-fired power generation operations and maintenance costs Biomass-fired power generation capacity factors and efficiency The levelised cost of electricity from biomass-fired power generation GEOTHERMAL POWER GENERATION Geothermal power generation installed costs The LCOE of geothermal power generation COST REDUCTIONS TO 2020