A new report by the International Renewable Energy Agency (IRENA) states that solar and wind energy combined with battery storage are now capable of delivering reliable, round-the-clock electricity at costs that are increasingly lower than fossil fuel-based power generation. The report, titled “24/7 Renewables: The Economics of Firm Solar and Wind,” highlights how rapid technological advancements and falling battery costs are transforming renewable energy into a dependable and economically competitive power source.

According to the report, hybrid renewable energy systems that combine solar, wind, and battery storage are already able to provide continuous electricity supply in regions with strong solar and wind resources. IRENA noted that the firm levelised cost of electricity for solar-plus-storage systems currently ranges between USD 54 and USD 82 per megawatt-hour (MWh) in high-quality renewable energy regions.

In comparison, the cost of new coal-fired power generation in China ranges from USD 70 to USD 85 per MWh, while new gas-based power projects globally often exceed USD 100 per MWh.The report underlines that renewable energy systems are no longer limited by concerns over reliability. With major improvements in battery storage technology, renewable power projects are increasingly capable of supplying stable electricity throughout the day and night.

This shift is particularly important as global energy markets continue to face volatility due to geopolitical tensions and disruptions in fossil fuel supply chains.United Nations Secretary-General António Guterres stated that the recent global energy crisis has exposed the long-term risks and costs associated with dependence on fossil fuels.

He emphasized that renewable power is emerging as the most affordable, secure, and reliable energy option available today and called for accelerated investments in clean energy infrastructure and stronger international cooperation to support the global energy transition.Similarly, Francesco La Camera noted that the long-standing argument that renewable energy cannot provide reliable power no longer holds true.

He highlighted that the economics of the energy sector have shifted significantly due to the rapid decline in battery costs and advancements in energy storage technologies. According to him, renewable energy now offers not only economic advantages but also strategic benefits by improving energy security, resilience, and stability during periods of market uncertainty.

The report also explains that renewable energy systems paired with battery storage help optimise the use of existing grid infrastructure by shifting electricity generation to periods of higher demand and reducing exposure to fuel price fluctuations. These systems are expected to play a key role in supporting energy-intensive sectors such as artificial intelligence and data centres, which require uninterrupted electricity supply for efficient operations. I

n addition, reliable renewable energy systems can support the production of clean fuels for hard-to-abate industries where high utilisation rates are essential for commercial viability.IRENA’s findings show that the costs of renewable energy technologies have fallen sharply over the past decade. Since 2010, the total installed cost of solar photovoltaic (PV) projects has declined by 87%, while onshore wind project costs have fallen by 55%.

Battery storage systems have witnessed an even steeper decline, with costs dropping by approximately 93% during the same period.Construction timelines for renewable energy projects have also become shorter, with many projects now being completed within one to two years after securing permits and grid connectivity.

This is significantly faster than the development timeline for many new gas-fired power plants in several markets.The report further states that continued advancements in manufacturing, supply chain integration, and technology development are expected to reduce costs even further over the coming years.

IRENA estimates that by 2030, firm renewable energy costs could decline by around 30%, while costs may fall by nearly 40% by 2035. In some of the best-performing renewable energy locations globally, firm renewable power could become available at costs below USD 50 per MWh by 2035.

One example highlighted in the report is the Al Dhafra project in the United Arab Emirates, where solar PV has been combined with battery storage to deliver around 1 gigawatt of firm clean electricity at an estimated cost of approximately USD 70 per MWh.

The report also found that wind-plus-storage systems are becoming increasingly competitive across several international markets. In 2025, firm wind-plus-storage costs are estimated to range from around USD 59 per MWh in Inner Mongolia to nearly USD 88–94 per MWh in markets such as Brazil, Germany, and Australia.

These costs are expected to decline further by 2030.IRENA additionally noted that combining wind and solar generation together further improves cost efficiency because the complementary nature of both energy sources reduces the need for large battery storage capacity.

Overall, the report presents firm renewable energy systems as an increasingly viable solution for delivering affordable, stable, and clean electricity on a large scale while supporting long-term global energy security and decarbonisation goals.