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
14 May 2025
Deal with Calpine shows oil and gas major ExxonMobil has no intention of curbing its CCS ambitions, despite US policy risks and broader scepticism over the energy transition
13 May 2025
Volatile tariffs add new risks for a sector already struggling to achieve economies of scale
30 April 2025
State administrations are using a flawed metric to justify green energy projects
29 April 2025
Spain’s unprecedented blackout highlighted the risk for green hydrogen producers with exposure to Europe’s creaking power grids
