2022-06-30-IRENA-Renewable_Power_Generation_Costs_in_2021_204页_44mb

Summary of Renewable Power Generation Costs in 2021

The IRENA report "Renewable Power Generation Costs in 2021" highlights significant cost reductions across major renewable technologies compared to fossil fuels, key trends in capacity growth, and their economic impact, especially in the context of the 2022 fossil fuel price crisis.

Key Cost Declines:

• Solar PV: The global weighted average Levelized Cost of Electricity (LCOE) fell by 13% year-on-year, from $0.055/kWh in 2020 to $0.048/kWh in 2021. Total installed costs dropped 6%, with China playing a dominant role in driving prices down. Capacity factors increased from 15.3% in 2020 to 17.2% in 2021, boosted by the adoption of higher-efficiency modules, trackers, and bifacial technology.
• Onshore Wind: Costs fell 15%, from $0.039/kWh to $0.033/kWh. Total installed costs decreased 5%, with China experiencing aggressive turbine price negotiations. Capacity factors rose from 38% in 2020 to 39% in 2021, driven by larger turbines (rotor diameters increased by 46% since 2010) and taller hub heights.
• Offshore Wind: The LCOE declined 13%, from $0.086/kWh to $0.075/kWh. Total installed costs fell 25%, with advancements like longer blades, larger rotors, and economies of scale leading to efficiency. However, development farther from shore increased logistical costs.
• Concentrating Solar Power (CSP): Despite only one project commissioned ($0.114/kWh vs. $0.107 in 2020), the technology advanced with longer storage durations (up to 17.5 hours in Chile’s Cerro Dominador), supporting capacity factor increases.
• Hydropower: Costs rose slightly (4% YoY to $0.048/kWh), reflecting project diversification into less ideal sites. Geothermal and biomass costs remain region-specific but competitive locally, with high LCOEs in OECD countries.

Deployment Growth:

• Solar PV led global capacity additions (133 GW in 2021), followed by wind power (93 GW). China dominated both solar and wind growth, contributing 74% of global deployment, while Europe and the US saw increased projects.
• Record-breaking offshore wind expansion (21 GW in 2021, driven primarily by China) marked the largest annual increase on record.

Competitiveness:

• Renewables consistently undercut fossil fuels globally, providing cheaper and more stable generation. In 2021, renewables supplied 163 GW with costs cheaper than the cheapest G20 coal or gas options. The competition gained urgency during 2022's fossil fuel crisis, where renewables shielded electricity systems from extreme price volatility. Projects from 2021 saved an