Renewable Power Generation Costs in 2024
The latest cost analysis from the International Renewable Energy Agency (IRENA) shows that renewables continued to represent the most cost-competitive source of new electricity generation in 2024. Total installed costs for renewable power decreased by more than 10% for all technologies between 2023 and 2024, except for offshore wind, where they remained relatively stable, and bioenergy, where they increased by 16%. Nevertheless, the combination of capacity factors, market share, and financing costs led to a slight increase in the levelised cost of electricity (LCOE) for some technologies: solar PV by 0.6%, onshore wind by 3%, offshore wind by 4%, and bioenergy by 13%. Meanwhile, costs declined for CSP (-46%), geothermal (-16%), and hydropower (-2%).
Renewables continue to prove themselves as the most cost-competitive source of new electricity generation. On an LCOE basis, 91% of newly commissioned utility-scale renewable capacity delivered power at a lower cost than the cheapest new fossil fuel-based alternative. In 2024, renewables helped avoid USD 467 billion in fossil fuel costs, reinforcing their role in enhancing energy security, economic resilience, and long-term affordability.
As renewable capacity is expected to increase in the coming years to meet climate goals, enabling technologies such as battery storage, digitalisation, and hybrid systems are becoming increasingly vital for integrating variable renewable energy, enhancing asset performance, and improving grid responsiveness. Although challenges persist - including access to finance, permitting delays, supply chain bottlenecks, and geopolitical risks - greater alignment of policies, regulation, and investment is essential to accelerate the energy transition.
In a special address on 22 July 2025, the UN Secretary-General António Guterres outlined a compelling and evidence-backed case for why a just transition away from fossil fuels to renewable energy is inevitable – and the vast benefits it will bring for people and economies.