Renewable energy cost forecasts have fallen to all-time lows in 2020, driven by more affordable technologies for solar and wind power. These costs are predicted to continue decreasing rapidly over the coming two decades, creating unique possibilities for the energy transition.

1. Professional
Marcel Kooter
FALLING RENEWABLE
ENERGY COSTS IN 2020

2. Renewable energy cost forecasts have fallen to all-time
lows in 2020, driven by more affordable technologies for
solar and wind power. These costs are predicted to conti-
nue decreasing rapidly over the coming two decades,
creating unique possibilities for the energy transition.
Falling Renewable
Energy Costs
in 2020

3. Solar Energy Costs
Large-scale solar photovoltaics are expected
to be developed in 2025 at a levalised cost of
energy, or LCOE, of £44 per megawatt hour.
This compares to previous forecasts from
2016 of £68/MWh, a significant decrease.
Wind Energy Costs
Onshore wind forecasts for 2025 now stand
at £46/MWh, compared to the 2016 forecast
of £65/MWh. Offshore wind has seen the lar-
gest price decreases, with forecasts in 2020
suggesting a price of £57/MWh by 2025 com-
pared to a 2016 forecast of £106/MWh.
Hurdle Rate Updates
The hurdle rates for solar and wind – which
are the minimum financial returns required
by project developers over the lifecycle of a
project – have also been updated, reaching
5% for solar, 5.2% for onshore wind, and 6.3%
for offshore wind.

4. You can read
more about global
renewable energy
expansion plans over
the coming five years
by visiting the blog of
Marcel Kooter.
Marcel Kooter