By Abbas Nazil
A new analysis by the International Renewable Energy Agency shows that round-the-clock renewable energy systems combining solar, wind, and battery storage are now cheaper to operate than newly built fossil fuel power plants in many parts of the world.
The report highlights a major shift in global electricity economics, finding that “firm” renewable power—meaning energy that can be supplied continuously through storage integration—can now reliably compete with coal and gas on cost while also offering greater energy security and emissions reductions.
According to the study titled 24/7 renewables: The economics of firm solar and wind, the cost of delivering electricity from solar-plus-storage systems ranges between $54 and $82 per megawatt-hour in regions with strong renewable resources.
This compares favorably with new coal power in China, which costs between $70 and $85 per megawatt-hour, and new gas-fired electricity globally, which can exceed $100 per megawatt-hour, making renewables increasingly the lowest-cost option for new capacity.
The report also emphasizes that renewable energy is no longer seen as intermittent or unreliable when paired with storage technologies, noting that advances in battery systems have made it possible to deliver stable, 24-hour electricity supply from renewable sources.
Francesco La Camera, director general of the agency, stated that renewable power is now cost-competitive with fossil fuels and can provide stable electricity around the clock, challenging long-held assumptions about reliability in the energy transition.
He further explained that geopolitical risks affecting oil and gas markets, including supply disruptions in key regions, highlight the strategic importance of shifting toward renewable-based energy systems that are less exposed to global fuel volatility.
The report also documents dramatic cost reductions across clean energy technologies over the past decade, including an 87 percent fall in solar photovoltaic installation costs since 2010 and a 55 percent decline in onshore wind costs over the same period.
Battery storage technology has experienced even more significant cost reductions, dropping by approximately 93 percent, which has been a key driver in enabling round-the-clock renewable electricity systems at scale.
In addition, construction timelines for renewable projects have shortened significantly, with most installations now completed within one to two years after permitting and grid connection approvals, making them faster to deploy than many fossil fuel power plants.
Looking ahead, the report projects that renewable energy costs could fall by another 30 percent by 2030 and about 40 percent by 2035, with some systems expected to deliver electricity below $50 per megawatt-hour within the next decade.
United Nations Secretary-General António Guterres described the findings as evidence that renewable energy is now the most affordable and secure option for future electricity systems, emphasizing the need to accelerate investment in clean energy infrastructure globally.
He added that the ongoing global energy crisis has exposed the economic risks of continued fossil fuel dependence while reinforcing the opportunity to transition toward cleaner, locally produced energy sources that improve resilience and stability.
The findings suggest a structural transformation in global energy markets, where renewable systems supported by storage are increasingly replacing fossil fuels not only for environmental reasons but also for clear economic advantage.
