The PV levelized cost of energy (LCOE) continue to fall. According to a report by the International Renewable Energy Agency (IRENA), by 2022 they will have fallen by a further 3 % decreased and remain at a historic low despite a slight increase in component costs and ongoing inflation. In the period from 2010 to 2022, the respective LCOE for photovoltaic systems worldwide fell by 89 %, for solar thermal and onshore wind power systems by 69 % each and for offshore wind power systems by 59 %. The values of the current Investigation of IRENA confirm the trend that the Fraunhofer Institute had already identified in a 2021 study on the Power generation costs in Germany. The positive trend in renewables has also been accelerated by the fact that the price of electricity generated from fossil fuels has tripled in Europe since 2010.
Renewables are booming in Asia and Europe
Globally, the capacity of all renewable energy power plants increased by 9.6 % in 2022, representing a total increase of 295 gigawatts. As a result, global expenditure on electricity from fossil fuels was reduced by USD 521 billion. The Asian countries benefited the most from this with 199 billion US dollars, closely followed by Europe. Here it was possible to save 176 billion US dollars. This means that 86 % of all newly commissioned renewable energy power plants produce electricity more cheaply than fossil fuel plants. The economic expansion of renewables is clearly noticeable with lower production costs in the areas of PV, onshore wind, solar and geothermal energy. However, the costs of offshore wind and hydropower plants have risen slightly.
The year 2022 is considered a turning point in the energy industry
IRENA's Director General, Francesco La Camera, said: "IRENA sees 2022 as a real turning point in the development of renewables, as their competitiveness has never been greater, despite the continued inflation of feedstock and equipment costs around the world." It continues, "Today, the economic case for renewables is more compelling than ever, but the world needs to add an average of 1,000 GW of renewable energy every year until 2030 to stay within reach of the 1.5°C of global warming. That's more than three times the level of 2022."