Cost of key materials used in solar PV and wind turbine manufacturing has increased
IEA warns of commodity cost threat to renewables
Rising prices could delay wind and solar projects and add $100bn to costs, agency warns
Surging commodity and transport prices could counteract cost reductions achieved in onshore wind and solar since 2015 if they persist through next year, according to the IEA. Onshore wind and solar costs could rise by 25-30pc, adding about $100bn to the overall investment needed to complete projects that are already contracted, the IEA’s analysis shows. This cost inflation could delay the installation of about 100GW of planned capacity. “Renewables were on the deflation side of the picture, improving their competitiveness. However, there is a new challenge coming up,” says Heymi Bahar, senior analyst for renewable energy markets and policy at the IEA. “The prices of key materials that are
Also in this section
8 March 2025
Honouring the trailblazing women shaping the future of hydrogen
4 March 2025
Rising power demand has boosted the prospects for CCS as some more established transition technologies come under pressure
27 February 2025
Governments working at pace to create compliance and voluntary markets and carbon tax regimes, with Indonesia, Malaysia, Singapore among the frontrunners
18 February 2025
Demand for CCS to abate new gas-fired plants is rising as datacentres seek low-carbon power, Frederik Majkut, SVP of industrial decarbonisation, tells Carbon Economist
