In 2024, the levelised cost of electricity (LCoE) for renewable energy technologies continues to improve, reflecting significant advancements, according to Wood Mackenzie. Wind and solar power lead the global energy transition, steadily outcompeting fossil fuel sources, despite regional differences in cost competitiveness.
For solar power, fixed-axis systems averaged $66/MWh globally, with costs ranging from $28/MWh to $117/MWh, depending on geography and market conditions. Single-axis tracking solar systems demonstrated a slight advantage, with an average LCoE of $60/MWh and a range of $31/MWh to $103/MWh, reinforcing their growing adoption in utility-scale projects.
Onshore wind technology showed a global average LCoE of $75/MWh, ranging from $23/MWh to $139/MWh, while offshore wind remains more expensive. Fixed offshore installations averaged $230/MWh, with floating systems at $320/MWh, though costs are expected to decrease over time.
In the Asia-Pacific region, LCoE for renewables dropped by 16% in 2024, driven by a 21% reduction in capital costs, with solar maintaining its position as the cheapest generation option. Europe saw a smaller decline, with a 0.2% reduction in LCoE, despite a 9% decrease in installation costs from 2020 to 2023, influenced by project funding challenges. Southern Europe leads in utility-scale solar PV, achieving the lowest LCoE due to capital cost declines.
In North America, LCoE for renewable technologies decreased by 4.6% in 2024, supported by a 4.2% drop in capital costs. These trends reflect the ongoing global shift towards cost-effective renewable energy solutions.
