Renewables costs to continue to fall

The cost of renewable energy technologies is set to fall further this year following last year’s record drop, according to new figures.

Research by BloombergNEF (BNEF) said the cost of wind, solar and battery technologies is predicted to fall by as much as 11% in 2025.

BNEF said new wind and solar farms are already undercutting new coal and gas plants on production cost in almost every market globally.

Although trade barriers could temporarily hinder cost falls, BNEF still expects the levelised cost of electricity for clean technologies to drop by between 22-49% by 2035.

BNEF’s report said global benchmark cost for battery storage projects fell by a third in 2024 to $104 per MWh, as a glut in supply due to slower electric vehicle sales led to cheaper prices for battery packs. Meanwhile, the cost of a typical fixed-axis solar farm fell by 21% globally last year.