It is notable that when using renewable sources like solar and the wind to produce electric energy, the cost of production is reduced significantly.
As reported in the joint International Energy Agency- Nuclear Energy Agency, the production cost of renewable energy is comparable or even much lower than the traditional energy. The report was drawn from the assessment of many power plants and it also outlines the factors that make electricity production costly.
According to the report, it is cheap to produce energy using wind and solar more so in the solar photovoltaic space mainly due to its technological progress that is well sustained. When comparing coal and gas- fired plants, it is clear, that nuclear power is cheaper.
The zero cost of renewable sources and the flat rate of the new nuclear energy plant costs has solved the problem of cost inflation in electric power for the past five years.
However, according to IEA/NEA, there is no particular electricity generation technology, that is cheap in all aspects. Factors such as policy environment, resource endowments, and market structure are some of the local influences that spell out the cost of investment.
The report assessed the cost of power generation in over 180 plants in 22 countries including China and Brazil whose markets are fast growing in terms of economy and in turn consumption of electric energy .
The report further claims that utility-scale solar PV and onshore wind power is comparable or even cheaper than coal or gas-fired plants more especially in countries with regulatory frameworks, plentiful resources and appropriate market. However, the cost of production using renewable technologies can shoot higher than the use of coal or gas in markets that that higher priced.
Considering all factors, the cost of power generation using renewable sources is much cheaper than the use of traditional sources.