The argument that renewables cannot deliver round-the-clock power has been losing ground for some time. Now, a new report from the International Renewable Energy Agency (IRENA) removes much of what remained of the case. 24/7 renewables: The economics of firm solar and wind concludes that hybrid plants pairing solar PV or wind with battery storage are now able to deliver firm electricity at lower cost than new fossil generation in most prime resource regions, with the gap set to widen further over the next decade.
The headline figure is the firm levelised cost of electricity, the cost of supplying power on a guaranteed basis rather than only when the sun shines or the wind blows. For solar plus storage in high-quality resource regions, IRENA puts firm costs at USD 54 to 82 per MWh in 2025, against USD 70 to 85 per MWh for new coal in China and more than USD 100 per MWh for new gas globally. Firm wind plus storage runs from around USD 59 per MWh in Inner Mongolia to USD 88 to 94 per MWh across Brazil, Germany and Australia, with projected reductions to USD 49 to 75 per MWh across the same markets by 2030.
Record levels for renewables as deployment falls behind
Since 2010, total installed costs for solar PV have fallen by 87 percent, onshore wind by 55 percent and battery storage by 93 percent, the report finds. The combined effect on hybrid systems is what now puts firm renewables ahead of new-build fossil capacity, with further reductions of around 30 percent by 2030 and 40 percent by 2035 projected at the best-performing sites. By 2035, firm costs at those sites could fall below USD 50 per MWh.
Construction timelines for solar, wind and storage projects are typically one to two years from securing permits and grid connection, well ahead of new gas-fired alternatives in most markets. With construction quick and costs falling, firm renewables are pulling ahead of fossil generation on both price and delivery risk.
"The long-standing argument that renewables lack reliability no longer holds," said IRENA Director-General Francesco La Camera. "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."
IRENA charts course from crisis to energy security
Commenting on the report, UN Secretary-General António Guterres was blunt: "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."
There are numerous commercial implications. Hybrid plants make better use of constrained grid connections by shifting output into higher-value hours, and reduce exposure to price volatility, both useful properties for project finance. They are also positioned to serve the most demanding electricity users, including AI and data centre operators that require power without interruption.
A working example sits in IRENA's own backyard. The United Arab Emirates' Al Dhafra complex, pairing solar PV with battery storage, is already delivering a firm gigawatt of clean electricity at around USD 70 per MWh – a figure the report cites as a real-world example of its cost analysis. (TF)
The full report is available from IRENA.
