Cost of key materials used in solar PV and wind turbine manufacturing has increased

Wind Solar IEA Energy transition

1 December 2021

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 a

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