Renewable energy technology becoming cheaper

Cost of gas- and coal-fired plants is rising.

The International Energy Agency’s “Renewable Energy Technology Deployment” report said the generation costs of new renewable energy technology are decreasing and approaching the costs of gas- and coal-fired plants.

It noted that the cost of gas- and coal-fired plants is increasing because of the higher capital costs of some new thermal plants and the rising cost of fuel.

IEA said it is necessary to maintain current incentives to provide business cases that would interest investors for now, however, noting that when incentives do not exist or are not appropriately defined, the business case of new generation does not hold.

New wind and solar power sources still require policy support to bridge the gap between the cost of generation and the market price of electricity. The report pointed out that policies and regulations can significantly affect the business cases of renewable and nonrenewable power sources.