Solar and wind energy paired with battery storage are reliable and deliver cost-effective, round-the-clock electricity, says intergovernmental agency the International Renewable Energy Agency (Irena).

Additionally, in prime solar and wind regions, hybrid solutions, combined with storage, provide round-the-clock power at lower costs than fossil fuels, Irena’s '24/7 renewables: The economics of firm solar and wind' report shows.

The firm levelised cost of electricity, or firm costs, for solar plus storage range from $54/MWh to $82/MWh in high-quality resource regions, compared with $70/MWh to $85/MWh for new coal-based generation in China and more than $100/MWh for new gas-based generation globally.

Costs decline further when wind is combined with solar PV, which leverages complementary generation profiles to reduce storage requirements and overall system cost, the report shows.

“24/7 renewable power is now cost-competitive with fossil fuels. As oil and gas markets remain exposed to geopolitical shocks, including ongoing disruptions in the Strait of Hormuz, we must insulate our economies with resilient renewable systems,” says Irena director-general Francesco La Camera.

“The economics of the entire energy system have shifted and the battery revolution has driven down costs while accelerating advances in storage. The advantage of renewables is not only economic but strategic, thereby strengthening resilience, stability and energy security in times of crisis,” he says.

Round-the-clock renewable power systems optimise the use of constrained grid connections, shift electricity production to higher-value hours and reduce exposure to price volatility.

These hybrid solutions are well positioned to serve the most demanding electricity users, including AI and data centres that require uninterrupted supply as one of the key commercial benchmarks, the report states.

Further, firm renewables also 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, it notes.

Additionally, Irena’s analysis shows that firm costs for renewables have declined rapidly, driven by falling costs for solar PV, wind power and battery storage.

Since 2010, total installed costs declined by 87% for solar PV and by 55% for onshore wind. Battery storage costs fell even more sharply, declining by 93%.

Construction timelines are also shortening, with projects typically being built within one to two years of securing permits and grid connection, which is well ahead of new gas-fired alternatives in most markets, Irena says.

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

As costs fall simultaneously across solar, wind and batteries, their combined effect on hybrid systems is already significant, the report says.

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

Further cost reductions of about 30% by 2030 and about 40% by 2035 are projected, which will bring firm costs below $50/MWh at the best-performing sites by 2035, it says.

For example, the Al Dhafra complex in the United Arab Emirates, which pairs solar PV with battery storage illustrates this in practice, and delivers a firm 1 GW of clean electricity at around $70/MWh.

Firm wind‑plus‑storage systems are also becoming increasingly competitive, the report states.

Irena’s estimates for 2025 show that firm wind-plus-storage costs ranged from around $59/MWh in Inner Mongolia to around $88/MWh to $94/MWh across Brazil, Germany, and Australia, with costs projected to fall to roughly $49/MWh to $75/MWh across these markets by 2030.

“The worst energy crisis in decades has exposed the true cost of fossil fuel dependence. But another path is now possible. Renewable power is increasingly the most affordable, reliable and secure option,” says UN secretary-general António Guterres.

“Let us accelerate the transition, invest in energy infrastructure, and strengthen international cooperation to finally deliver clean, homegrown power to people everywhere.”