The world is witnessing a quiet revolution in energy production, one that promises to reshape our reliance on fossil fuels. A new report by the International Renewable Energy Agency (IRENA) reveals that 24/7 renewable power, achieved through hybrid solutions of solar and wind with battery storage, is not just a possibility but a reality that is already outcompeting fossil fuels in terms of cost-effectiveness. This groundbreaking finding is set to accelerate the global transition to clean energy, offering a compelling alternative to traditional energy sources.
The Cost Advantage of 24/7 Renewables
The report, titled '24/7 renewables: The economics of firm solar and wind', highlights a significant cost advantage for renewable energy sources. In prime solar and wind regions, hybrid solutions combined with storage deliver round-the-clock power at lower costs than fossil fuels. For instance, firm levelised costs of electricity (firm costs) for solar plus storage range from USD 54 to USD 82 per megawatt-hour (MWh) in high-quality resource regions, compared with USD 70-85 per MWh for new coal in China and more than USD 100 per MWh for new gas globally.
This cost-competitiveness is a game-changer, especially for the most demanding electricity users, such as artificial intelligence (AI) and data centres, which require uninterrupted supply. Moreover, firm renewables enable the production of clean fuels for hard-to-abate sectors, where economic viability depends not only on costs but also on the ability to operate at high utilisation rates.
Rapid Cost Decline and Technological Advancements
The decline in firm costs is not just a trend but a rapid one. Since 2010, total installed costs have declined by 87% for solar PV and by 55% for onshore wind. Battery storage costs have fallen even more sharply, declining by 93%. This rapid cost reduction is driven by falling costs for solar PV, wind power, and battery storage, as well as shorter construction timelines. Projects are typically built within one to two years of securing permits and grid connection, well ahead of new gas-fired alternatives in most markets.
Future Projections and Global Impact
The future looks even brighter for 24/7 renewables. IRENA's analysis projects further cost reductions of roughly 30% by 2030 and around 40% by 2035, bringing firm costs below USD 50 per MWh at the best-performing sites by 2035. The United Arab Emirates' Al Dhafra complex, which pairs solar PV with battery storage, already delivers a firm 1 gigawatt of clean electricity at around USD 70 per MWh, showcasing the practical potential of this technology.
Wind-Plus-Storage Systems and Complementary Generation
Wind-plus-storage systems are also becoming increasingly competitive. IRENA's estimates for 2025 show that firm wind-plus-storage costs ranged from around USD 59 per MWh in Inner Mongolia to around USD 88-94 per MWh across Brazil, Germany, and Australia. When wind is combined with solar PV, the generation profiles complement each other, reducing storage requirements and overall system cost.
Conclusion: A Global Shift Towards Clean Energy
The IRENA report provides a robust benchmark for evaluating and comparing the costs of round-the-clock renewable power, while analysing cost trends, cost drivers, and regional variations in hybrid, round-the-clock solar, wind, and storage systems. As costs continue to fall and technology advances, the transition to 24/7 renewables is set to accelerate, offering a sustainable and cost-effective alternative to fossil fuels. This shift promises a cleaner, more resilient energy future, one that is increasingly within our reach.
