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Cost of Clean Energy Seen Nosediving Into the Next Decade

The cost of renewables technology is set to keep falling into the next decade, boosting the economic case for clean energy, according to an industry group. The average cost of electricity from a photovoltaic system is forecast to plunge as much as 59 percent by 2025, according to a report Wednesday by the International Renewable Energy Agency. The technology last year produced energy that was already 58 percent cheaper than it was in 2010.  Government policy can also play a role in reducing borrowing costs for project developers. “Solar doesn’t need a subsidy anymore, but regulatory frameworks that back long-term power purchase agreements will reduce solar’s cost of capital and make it possible to build it for below the cost of other sources,” said Jenny Chase, head of solar analysis at Bloomberg New Energy Finance.

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Bloomberg
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