With the development of renewables sector and its popularization in developed and developing countries, the cost of electricity production from nontraditional sources is gradually reducing. Benefits for companies, which build renewable objects, have been encouraging business environment to invest in projects with a zero emissions for a long time. However, lower prime cost of “green” generation as of today encourages to invest more compared to recent years.
According to findings by the Bloomberg New Energy Finance international agency, since the first half of 2018, the Levelized Cost of Electricity (LCOE) for lithium-ion batteries fell by 35% to $187/MWh. At the same time, the LCOE for offshore wind farms declined by 24%. Onshore solar and wind power plants also reduced this figure to $50 for plamts that began to be constructed in 2019.
BloombergNEF’s data indicates that LCOE per MWH for wind farms, SPPs and offshore wind farms since 2010 has been reduced by 49%, 84% and 56%, respectively. Thus, this tendency points to stable improvement of competitiveness of alternative generation in comparatively to fossil energy sources.