IRENA says solar and wind paired with battery storage can now provide cost-competitive 24/7 electricity in many regions
Firm solar-plus-storage electricity costs are estimated at $54-82 per MWh, lower than new gas-fired power in most markets
The agency expects costs for firm renewable electricity to decline by up to 40% by 2035 as solar, wind, and battery storage technologies continue to improve
Hybrid renewable systems paired with storage can often be built within 1 to 2 years, helping meet rising electricity demand from AI, data centers, and industry faster than new fossil fuel plants
Solar and wind projects combined with battery storage can already provide reliable 24/7 electricity at competitive costs, according to a new report from the International Renewable Energy Agency (IRENA).
The report, titled 24/7 renewables: The economics of firm solar and wind, says hybrid renewable systems in regions with strong solar and wind resources can generate round-the-clock (RTC) power more cheaply than new coal and gas plants.
IRENA estimates firm solar-plus-storage electricity costs fell from above $100/MWh in 2020 to between $54 and $82 per MWh in high-irradiance solar regions, compared with $70 to $85 per MWh for new coal projects in China and more than $100 per MWh for new gas plants globally.
The agency said falling costs for solar PV, wind power, and battery storage have driven rapid declines in renewable electricity costs over the past decade. Since 2010, solar PV installation costs have fallen by 87%, onshore wind by 55%, and battery storage costs by 93%.
Analysts point out that combining wind, solar, and storage can reduce overall system costs by balancing electricity generation profiles and lowering storage needs.
According to the analysis, firm renewable electricity costs could decline by another 30% by 2030 and around 40% by 2035 (projected under current technology and cost assumptions), with some projects expected to deliver power for less than $50 per MWh by 2035. Firm costs may fall to a range of $44 to $58 per MWh at most sites globally for solar-plus-storage, barring the US – a market that experiences higher financing costs, interconnection charges, and permitting complexities.
They refer to the UAE’s Al Dhafra complex, which plans to deliver a firm 1 GW of clean electricity at around $70/MWh by pairing solar PV with battery storage (see UAE To Host World’s ‘1st’ Facility To Provide RE 24x7, At Scale).
Project-level firming is already taking shape in practice, says IRENA, citing India’s RTC renewable energy tenders, the growing popularity of co-located solar-plus-storage in the US, and the coupling of solar with BESS and complementary wind generation in Australia and Portugal. Recently, a SolarPower Europe study said that solar and storage could cut down power costs by 49% by 2030 in the EU (see EU Solar + Storage Could Cut Power Costs By 49% By 2030).
IRENA Director-General Francesco La Camera said, “24/7 renewable power is now cost-competitive with fossil fuels.” He added, “The economics of the entire energy system have shifted: the battery revolution has driven down costs while accelerating advances in storage.”
IRENA notes that rising electricity demand from data centers, AI, industry, and electrification is increasing the importance of fast-to-build energy solutions. A significant advantage of renewable-plus-storage projects is that they can typically be built within 1 to 2 years after securing permits and grid connections, often faster than new gas-fired power projects in most markets.
Battery storage can also help add more renewable capacity using existing grid connections, reducing delays and avoiding costly grid upgrades.
“Today, renewables can deliver reliable, round‑the‑clock power. As oil and gas markets remain exposed to geopolitical shocks, including ongoing disruptions in the Strait of Hormuz, we must insulate our economies with resilient renewable systems,” added Camera.
The report adds that renewables-based hybrid systems can improve energy security by reducing dependence on imported fossil fuels and exposure to fuel price volatility. However, IRENA says supportive policies, market reforms, and grid planning will be needed to fully unlock the benefits of firm renewable energy systems.
The complete report is available for free download on IRENA’s website.
