Context: International Renewable Energy Agency (IRENA) has released a report titled ‘Renewable Power Generation Costs in 2018’.

For the study, IRENA analysed eight major solar PV markets from 2010 to 2018. These countries include China, France, Germany, India, Italy, Japan, the UK and the US.

Key findings:

India is now the lowest-cost producer of solar power globally. total installed costs of utility-scale solar PV in India is as low as $793 per kilowatt (kW) in 2018 which is 27 per cent lower than for projects commissioned in 2017. Costs have dropped by 80 per cent in India.

Canada has the highest cost at $2,427 per kW.

Renewable energy sources have witnessed cost decline globally. 

Reasons behind the low cost:

• India has high solar potential that leads to improved asset utilization.
• The country imports majority of hardware for installation from China which is cheaper and helps cut the cost by a huge margin.
• As the cost of land and labor is cheaper than the rest of the world, it also contributes to low-cost production of solar power in India.

About IRENA:

It is an intergovernmental organisation mandated to facilitate cooperation, advance knowledge, and promote the adoption and sustainable use of renewable energy.

It is the first international organisation to focus exclusively on renewable energy, addressing needs in both industrialized and developing countries.

It was founded in 2009 & its statute entered into force on 8 July 2010 and is headquartered in Masdar City, Abu Dhabi.

IRENA is an official United Nations observer.