Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on the day's biggest business stories
Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Sign up for Axios NW Arkansas
Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters
Illustration: Sarah Grillo/Axios
The downward march of solar and onshore wind power costs mean they're now the cheapest source of new power development for at least two-thirds of the global population, the research firm BloombergNEF said in a new analysis.
Why it matters: The annual survey of all-in costs for power projects underscores why analysts see the coronavirus pandemic slowing growth but not altering the fundamental trajectory of the technologies.
What they found: The levelized cost of electricity for utility-scale solar and onshore wind projects has fallen another 4% and 9% since just the second-half of 2019.
- Wind has seen the steepest decline since 2015, they note. "This is mainly due to a scale-up in turbine size, now averaging 4.1 megawatts, and priced at about $0.7 million per megawatt for recently financed projects," they said.
What they did: The analysis measures the all-in costs of creating power, which means "development, construction and equipment, financing, feedstock, operation and maintenance."
But, but, but: The growing cost-competitiveness and often outright advantage that is driving growth in the sectors doesn't mean there aren't big problems due to coronavirus.
- Multiple analysts have cut their forecasts for 2020 additions of new generating capacity.
- The pandemic is disrupting supply chains and some project financing, and developers fear missing out on deadlines to use incentives.
- The Financial Times reports today that in the wind sector, supply chain woes are "putting as much as 30 gigawatts of new capacity at risk in the US, China and Europe this year alone."
The intrigue: BloombergNEF notes that competing fuels are also seeing cost declines.
- "Coal and gas prices have weakened on world markets. If sustained, this could help shield fossil fuel generation for a while from the cost onslaught from renewables," chief economist Seb Henbest said.
What we're watching: Whether calls from the UN, International Energy Agency, EU officials and others for boosting clean energy via economic rescue packages come to fruition.