Renewable Power Generation Costs in 2014 is one of the most comprehensive studies yet made on the renewable energy price revolution in the power sector. Its findings are striking. Solar photovoltaic (PV) modules in 2014 cost three-quarters less than in 2009, while wind turbine prices declined by almost a third over the same period. The cost of electricity from utility-scale PV systems has fallen by around half since 2010.
Still, wide price disparities remain among renewable energy technologies, as well as between different countries and regions. While such gaps sometimes relate to resource availability, they also reflect an array of market conditions, balance-of-system costs, regulations and risk perceptions. Major challenges remain to bring down the cost of finance , especially in developed countries, and the high transaction costs for small-scale projects.
Nonetheless, the trend is clear. Renewable power generation will keep getting cheaper over time, even in a period of falling oil prices, which history tells us will in all probability be transitory. Renewables development and deployment represents the most secure long-term hedge against fuel price volatility, the best route to reducing greenhouse gas emissions, and a sound financial investment. Their future is bright indeed.