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Abu Dhabi,
United Arab Emirates, 06 May 2026 - Solar and wind
energy paired with battery storage are reliable and already today deliver
cost-effective, round-the-clock electricity, according to a new report by
the International Renewable Energy Agency (IRENA).
24/7 renewables: The economics of firm solar and wind
confirms that in prime solar and wind regions, hybrid solutions combined
with storage deliver round-the-clock power at lower costs than fossil
fuels.
Firm levelised costs of electricity (‘firm costs’) for solar plus storage
range from USD 54 to USD 82 per megawatt-hour (MWh) in high-quality
resource regions, compared with USD 70–85 per MWh for new coal in China
and more than USD 100 per MWh for new gas globally.
Commenting on IRENA’s new report, United
Nations Secretary-General António Guterres said: “The
worst energy crisis in decades has exposed the true cost of fossil fuel
dependence. 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.”
IRENA
Director-General Francesco La Camera added: “24/7
renewable power is now cost-competitive with fossil fuels. 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.”
24/7 renewable power optimises the use of constrained grid connections,
shifts electricity production to higher-value hours and reduces exposure
to price volatility. These hybrid solutions are well positioned to serve
the most demanding electricity users, including artificial intelligence
(AI) and data centres that require uninterrupted supply as one of the key
commercial benchmarks. Firm renewables also enable the production of
clean fuels for hard-to-abate sectors, where economic viability depends
not only on costs but also on the ability to operate at high utilisation
rates.
IRENA’s analysis shows that firm costs have declined rapidly, driven by
falling costs for solar PV, wind power and battery storage. Since 2010,
total installed costs declined by 87% for solar PV and by 55% for onshore
wind. Battery storage costs fell even more sharply, declining by
93%.
Construction timelines are also shortening with projects typically being
built within one to two years of securing permits and grid connection,
well ahead of new gas-fired alternatives in most markets.
Continued technology learning, manufacturing scale and supply chain
integration are expected to drive further cost reductions across all
three technologies. As costs fall simultaneously across solar, wind and
batteries, their combined effect on hybrid systems is already
significant.
IRENA analysis of solar-plus-battery configurations across multiple
countries shows that firm costs have fallen from above USD 100 per MWh in
2020 to around USD 54-82 per MWh by 2025 at high-irradiance solar regions
and strong wind corridors.
Further cost reductions of roughly 30% by 2030 and around 40% by 2035 are
projected, bringing firm costs below USD 50 per MWh at the
best-performing sites by 2035. The United Arab Emirates' Al Dhafra
complex for example, that pairs solar PV with battery storage, already
illustrates what this means in practice: delivering a firm 1 gigawatt of
clean electricity at around USD 70 per MWh.
Firm wind‑plus‑storage systems are also becoming increasingly
competitive. IRENA’s estimates for 2025 show that firm wind-plus-storage
costs ranged from around USD 59 per MWh in Inner Mongolia to around USD
88-94 per MWh across Brazil, Germany, and Australia, with costs projected
to fall to roughly USD 49-75 per MWh across these markets by 2030.
Costs decline further when wind is combined with solar PV, leveraging
complementary generation profiles to reduce storage requirements and
overall system cost.
24/7 renewables: The economics of firm solar and wind
provides a robust benchmark for evaluating and comparing the costs of
round‑the‑clock renewable power, while analysing cost trends, cost
drivers and regional variations in hybrid, round-the-clock solar, wind
and storage systems.
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