The weighted average cost of new solar, onshore and offshore wind in 2021 fell globally, despite rising material and equipment costs, according to a new report published by the International Renewable Energy Agency (IRENA).

In particular, the report “Renewable Power Generation Costs in 2021”, states that the costs fell because there is a significant lag in passing through the total installation costs.

The global weighted average cost of electricity for new onshore wind added in 2021 fell 15% year-over-year to $0.033 per Kilowatt-hour, while for new large-scale PV the corresponding cost fell 13% year-over-year year, at 0.048 dollars per Kilowatt hour.

In the category of offshore wind, a 13% decrease was recorded, to 0.075 dollars/kWh.

IRENA reports: “In the period 2010 to 2021 there was a “seismic” improvement in the competitiveness of RES”.

“The global weighted average cost of electricity (LCOE) of new large-scale photovoltaics in operation has decreased by 88% between 2010 and 2021, while, correspondingly, for onshore wind by 68%.”