The global energy elite gathered last week in Berlin to discuss progress and chart new direction in the ongoing global transition to renewable energy.
The two-day Berlin Energy Transition Dialogue – towards a global Energiewende brings together energy policy experts and representatives of politics, industry and civil society to shape new energy policy and drive future progress.
The Director-General of the International Renewable Energy Agency (IRENA) Adnan Z. Amin, delivered a keynote address at the event, highlighting the global impact of Germany’s early innovation and continuing commitment to the development and deployment of renewable energy technologies.
“Germany has long recognised technological innovation as a crucial component of its Energiewende,” said Mr. Amin. “This foresight and commitment has inspired the innovation and investment required for these technologies to become technically and commercially viable in developed and developing economies.”
According to IRENA’s recent report Renewable Power Generation Costs in 2014, the cost of generating power from renewable energy sources has reached parity or dropped below the cost of fossil fuels for many technologies in many parts of the world. This holds true even without financial support and despite falling oil prices. Solar photovoltaic (PV) is leading the cost decline, with solar PV module costs falling more than 75 per cent since the end of 2009 and the cost of electricity from utility-scale solar PV falling 50 per cent since 2010.
The report indicates that offshore wind is still typically more expensive than fossil fuel-fired power generation options, with the exception of offshore wind in tidal flats. The technology represents an important renewable power source that will play an increasing part in the future energy mix as costs come down.
Historically, offshore wind costs rose after 2005, but this was as projects shifted further offshore and into deeper water; those costs now appear to be stabilising.
The regional weighted average LCOE for offshore wind varied from a low of USD 0.10/kWh for near-shore projects in Asia, where development costs are lower, to USD 0.17/kWh for projects in Europe.
“Germany has one of the most ambitious renewable energy targets in the world under the Energiewende, promising 60 per cent of renewable energy in final energy consumption and 80 per cent of electricity generated from renewable sources by 2050,” said Mr. Amin “IRENA applauds Germany’s leadership in this sector.”