Cost of solar and wind energy to fall 50% by 2040 says BNEF report

RE 'to soar' in UK, Germany image

Renewables will account for more than half of electricity generation in Germany and the UK by the mid-2020s, according to a new report.

The study – ‘Beyond the tipping point: flexibility gaps in future high-renewable energy systems in the UK, Germany and the Nordics’– was carried out by Bloomberg New Energy Finance (BNEF) for Eaton and the Renewable Energy Association (REA).

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It also said that the cost of generating wind and solar power is expected to fall by more than half by 2040 from levels today.

But, it argued, that variable renewable energy generation must be complemented by flexible resources, such as storage, despite there being likely occasions when wind and solar generation could exceed total demand.

REA chief executive Nina Skorupska said: “The study shows that wind and solar power are now the cheapest form of new build generation in many cases, and costs will continue to fall dramatically.

“Massive increases in future renewable power generation mean that industry and government must start planning now to ensure low-carbon, cost-effective ways of balancing demand and supply.”

Image: Pixabay