Utility solar dethrones coal as the cheapest power source in Asia [Video]

Renewable energy costs in Asia last year were 13% cheaper than coal and are expected to be 32% cheaper by 2030, according to a new study.

Source: Wood Mackenzie Asia Pacific Power & Renewable Services 

According to Wood Mackenzie’s latest analysis of the levelized cost of electricity (LCOE) for the Asia Pacific (APAC) region, the LCOE from renewables reached a historic low in 2023. This is significant because it marks a shift toward making renewables increasingly competitive with coal, a mainstay in APAC’s energy mix. The driving force behind this trend is the substantial reduction in capital costs for renewable energy projects.

China leads the pack with a 40-70% cost reduction in utility-scale solar, onshore wind, and offshore wind compared to other Asia Pacific markets. China is expected to maintain a 50% cost advantage in renewable energy up to 2050.

The significant drop in solar power costs, by 23% in 2023, signals the end of supply chain disruptions and inflationary pressures. As a …