London/Houston/Singapore, 21 October 2024: According to the latest LCOE reports from Wood Mackenzie, 2024 continues to showcase major advancements in renewable energy technologies, with wind and solar power at the forefront, significantly shaping the global Levelized Cost of Electricity (LCOE) landscape.
“Across regions, the cost competitiveness of these technologies shows significant variation, but overall, renewables are on a steady path towards outcompeting traditional fossil fuel sources,” said Amhed Jameel Abdullah, senior research analyst at Wood Mackenzie.
For solar PV, fixed-axis systems average an LCOE of US$66/MWh globally, with a wide range from US$28/MWh to US$117/MWh, reflecting the influence of geography, technology advancements, and regional market conditions. Single-axis tracking PV systems fare slightly better, averaging $60/MWh, with a range from $31/MWh to $103/MWh, reinforcing their growing role in utility-scale projects.
In contrast, onshore wind technology reports a global average LCOE of US$75/MWh, spanning from US$23/MWh to US$139/MWh, demonstrating its competitiveness across a variety of terrains and markets. Offshore wind, particularly floating systems, remains expensive, with fixed installations averaging US$230/MWh and floating systems at US$320/MWh. These costs are expected to fall over time but remain higher than onshore options.
The Wood Mackenzie reports cover the regions of Europe, North America, Latin America, Asia Pacific and the Middle East and Africa.
