Renewables LCOE declines further in 2024 - Wood Mackenzie

The competitiveness of renewable energy technologies continued to accelerate in 2024, with the levelised cost of electricity (LCOE) of wind and solar showing significant advances, according to a recent report from Wood Mackenzie.

Solar PV fixed-axis systems have a global average LCOE of USD 66 (EUR 61) per MWh, varying from USD 28 per MWh to USD 117 per MWh. The average for single-axis tracking PV systems is slightly lower, at USD 60 per MWh.

Onshore wind averages USD 75 per MWh, with costs ranging from USD 23 per MWh to USD 139 per MWh. Offshore wind remains costlier, with fixed and floating systems averaging USD 230 per MWh and USD 320 per MWh, respectively.

“Across regions, the cost competitiveness of these technologies shows significant variation, but overall, renewables are on a steady path towards outcompeting traditional fossil fuel sources,” Amhed Jameel Abdullah, senior research analyst at Wood Mackenzie, said in an announcement earlier this week.

In Asia Pacific, the LCOE for renewable technologies like wind and solar fell by 16% in 2024, aided by a 21% decline in capital costs. Solar PV remains the cheapest generation option in the region.

In Europe, the average LCOE for renewables declined only slightly by 0.2% last year due to project funding challenges. Utility-scale solar PV in Southern Europe achieved the lowest LCOE in the region.
In North America, the renewable technologies LCOE declined by 4.6% on the back of a 4.2% drop in capital costs.

Significant cost reductions are expected across all regions by 2060.

(USD 1 = EUR 0.929)

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