Renewables Now Compete on Reliability

Why this is here: Battery storage costs have fallen by over 90% since 2010, and are expected to decline another 30% by 2030, accelerating the shift toward competitive renewable energy systems.

The International Renewable Energy Agency (IRENA) reports solar and wind power, paired with battery storage, can now deliver consistent electricity at costs matching—and often beating—fossil fuels. IRENA developed a benchmark, the Firm Levelized Cost of Electricity, to compare renewable and fossil fuel systems under similar reliability conditions.

Systems combining solar or wind with storage currently range from roughly $54 to $94 per megawatt-hour, while new coal ranges from $70 to $85. In China, some solar-plus-storage systems are nearing $30 per megawatt-hour. Francesco La Camera, IRENA’s Director-General, notes this shift isn’t theoretical, citing concrete examples of 24/7 renewable delivery.

However, integrating this growing renewable capacity requires modernizing existing electric grids, designed for centralized fossil fuel generation. Demand is also increasing rapidly due to electrification and new technologies, potentially outpacing even record renewable deployment. The agency continues to analyze how to best meet rising global energy needs.