LCOE for photovoltaics in different countries around the world towards convergence

AleaSoft Energy Forecasting highlights, using Irena data, that the global weighted average LCOE for large-scale photovoltaic systems decreased by 89% between 2010 and 2022.

Image: AleaSoft

Irena and AleaSoft Energy Forecasting have highlighted that the differences between LCOEs for photovoltaic energy in different countries around the world are decreasing year by year.

“By country, China and India had the lowest LCOE in 2022, with costs of $37/MWh, which is 24% lower than the global weighted average. Australia also recorded competitive costs, placing third with 41 dollars/MWh, followed by Chile with 42 dollars/MWh. Spain ranked fifth with 46 $/MWh, with a decrease of 8% in 2022 compared to 2021, after an increase of 8% between 2020 and 2021,” reported AleaSoft Energy Forecasting, referring to Irena data.

According to Irena, the global weighted average LCOE for large-scale PV systems decreased by 89% between 2010 and 2022, from $445/MWh to $49/MWh.

“One of the main factors contributing to this decline in LCOE is the cost of PV modules, which has decreased by 91% over the last decade, leading to a 91% decline in installation costs of PV projects. Installation costs for solar farms averaged $876/kW globally in 2022,” AleaSoft Energy Forecasting added.