International Renewable Energy Agency: Solar LCOE Drops Significantly
Understanding Solar LCOE in 2023
The International Renewable Energy Agency (IRENA) has recently published reports detailing a significant drop in the levelised cost of electricity (LCOE) for solar energy. In 2023, the global weighted average LCOE for utility-scale photovoltaic (PV) plants reached US$0.044/kWh, representing a steep decline of 12% year-on-year from 2022.
Module Prices and Technological Advancements
- The decrease in LCOE can be attributed to lower module prices and advancements in technology.
- IRENA's data highlights the transformative impacts of innovation and scale in the solar sector.
- Since 2010, the LCOE has dropped 90%.
Implications for the Future of Energy Finance
The continued reduction in LCOE emphasizes the growing feasibility of solar energy as a cornerstone of the global energy transition. As financial models adapt to these new realities, stakeholders in the energy market must consider the implications of these changes on long-term investments and policy frameworks.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.