Solar and wind energy paired with battery storage are reliable and already can deliver cost-effective, round-the-clock electricity in prime regions, according to a new report by the International Renewable Energy Agency (IRENA).

In a report, 24/7 renewables: The economics of firm solar and wind, confirms that in some regions, hybrid solutions combined with storage deliver round-the-clock power at lower costs than fossil fuels.

IRENA’s analysis shows that firm costs have declined rapidly, driven by falling costs for solar PV, wind power and battery storage. Since 2010, total installed costs declined by 87 per cent for solar PV and by 55 per cent for onshore wind. Battery storage costs fell even more sharply, declining by 93 per cent. Construction timelines are also shortening with projects typically being built within one to two years of securing permits and grid connection, well ahead of new gas-fired alternatives in most markets.

24/7 renewable power also optimises the use of constrained grid connections, shifts electricity production to higher-value hours and reduces exposure to price volatility. These hybrid solutions are well positioned to serve the most demanding electricity users, including artificial intelligence (AI) and data centres that require uninterrupted supply as one of the key commercial benchmarks.

The report predicts that continued technology learning, manufacturing scale and supply chain integration are expected to drive further cost reductions across all three technologies.

IRENA analysis of solar-plus-battery configurations across multiple countries shows that firm costs have fallen from above $100 per MWh in 2020 to around $54-82 per MWh by 2025 at high-irradiance solar regions and strong wind corridors.

Further cost reductions of roughly 30 per cent by 2030 and around 40 per cent by 2035 are projected, bringing firm costs below $50 per MWh at the best-performing sites by 2035.

Firm wind‑plus‑storage systems are also becoming increasingly competitive. IRENA’s estimates for 2025 show that firm wind-plus-storage costs ranged from around $59 per MWh in Inner Mongolia to around $88-94 per MWh across Brazil, Germany, and Australia, with costs projected to fall to roughly $49-75 per MWh across these markets by 2030.

Costs decline further when wind is combined with solar PV, leveraging complementary generation profiles to reduce storage requirements and overall system cost.

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