For the first time in history, the production cost of renewables is lower than that of fossil fuels, an industry asset manager has claimed.
In a recent note to its clients, Hamburg, Germany-based Kaiserwetter Energy Asset Management, wrote that its “internal analysis” – based on data from Bloomberg, The Frankfurt School, Renewable Cost Database of the International Agency for Renewable Energy (IRENA) and UN Environment – puts fossil fuels generated energy costs in the range of $49 and $174 per MWh (Megawatt hours) in G20 energy markets in 2017.
Over a comparable period, renewable energy production came in between $35 and $54 per MWh. Breaking the data down further, Kaiserwetter said the international average cost for hydroelectric projects were more than $50 per MWh, wind power was $51 per MWh, and photovoltaic solar energy was $54 per MWh on average. Furthermore, it also claimed that renewable energy presents the best alternative to the high cost of nuclear power as well, as governments attempt the decarbonization challenge.