Solar and wind power combined with battery storage can now supply electricity around the clock at a lower cost than fossil fuels, according to a new report from the International Renewable Energy Agency (IRENA). The study, titled «Renewable Energy 24/7: The Cost-Competitiveness of Solar and Wind Power», concludes that the economic case for round-the-clock renewables has reached a tipping point.
In sunny and windy regions, the cost of solar power with storage ranges from 54 to 82 US dollars per megawatt-hour (MWh). That is up to 36 percent less than the cost of a new coal plant in China, estimated at 70 to 85 dollars per MWh, and up to 46 percent less than a new gas plant globally, which can exceed 100 dollars per MWh.
UN Secretary-General António Guterres responded to the findings by saying that «the worst energy crisis in decades has exposed the true cost of dependence on fossil fuels. But now it is possible to take a different path.» He added that renewable energy is increasingly becoming «the most affordable, reliable and secure option» and called for accelerated investment in energy infrastructure and stronger international cooperation.
IRENA Director-General Francesco La Camera said that «24/7 renewable energy is now cost-competitive with fossil fuels. The old argument that renewables lack reliability is no longer valid.» He noted that oil and gas markets remain exposed to geopolitical shocks, such as current disruptions in the Strait of Hormuz, and recommended «protecting our economies with resilient renewable systems.» According to La Camera, the advantage of renewables is not only economic but also strategic, as it strengthens resilience, stability and energy security in times of crisis.
The IRENA analysis shows that since 2010 total costs have fallen by 87 percent for solar photovoltaics and 55 percent for onshore wind. Battery storage costs have dropped even more sharply, by 93 percent. Construction timelines are also shortening: projects are typically built within one or two years from obtaining permits and grid connection, well ahead of new gas alternatives in most markets.
The agency expects further cost reductions of about 30 percent by 2030 and around 40 percent by 2035. If its estimates hold, firm costs could fall below 50 dollars per MWh at the best-performing sites by 2035. The Al Dhafra complex in the United Arab Emirates, which combines solar PV with battery storage, already illustrates what this means in practice: it provides 1 gigawatt of clean electricity at around 70 dollars per MWh.
Wind power with storage is also becoming increasingly competitive. IRENA estimates for 2025 show costs ranging from about 59 dollars per MWh in Inner Mongolia to around 88–94 dollars per MWh in Brazil, Germany and Australia. As the report explains, «in several of the world's major economies, systems combining wind power and battery storage have already crossed a new threshold: their cost is lower than keeping existing coal and gas plants running.» IRENA insists that this means fossil fuels are no longer only being challenged by new renewable installations, but also by the cost of continuing to operate the existing fleet of power plants.
As with solar, the agency expects the costs of wind with storage to continue falling to between 49 and 75 dollars per MWh in leading markets by 2030. «Costs fall even further when wind is combined with solar PV, taking advantage of complementary generation profiles to reduce storage requirements and the total system cost,» IRENA notes.
Beyond lowering costs, this 24/7 renewable energy optimizes the use of limited grid connections, shifts electricity production to higher-value hours and reduces exposure to price volatility. According to IRENA, hybrid systems are especially well suited to supplying large consumers with continuous supply needs, such as data centers and artificial intelligence infrastructure, whose operation depends on permanent electricity availability. Renewables also facilitate the production of clean fuels for hard-to-decarbonize sectors, where profitability depends not only on costs but also on the ability to operate at high utilization rates.