The high price of renewables relative to traditional fuel sources is their biggest drawback. Although the alternative-energy industry has made great strides in bringing down upfront costs, the perception remains that it is a long way from parity with fossil fuels.


A recent study comparing the costs of various fuel sources around the globe suggests that this historic price divide may finally be leveling off.


Published jointly in August by the International Energy Agency and the Nuclear Energy Agency, the 2015 edition of the annual study, “Projected Costs of Generating Electricity,” examines and compares the generating costs of electricity from more than 180 facilities across a range of fuel sources in 22 countries. The results could shatter some long-held perceptions about the generating costs for certain fuels.


For example, it shows that the cost of nuclear technology is “roughly on par” with the same costs shown in previous editions. According to the study, this undermines a “growing narrative” that the cost of nuclear power is trending upward on a global scale.


Perhaps more important, the study shows that the costs of renewable technologies have declined significantly over the past five years, demonstrating they are no longer what the study characterizes as “cost outliers.”


The study examines the costs of a number of different renewable technologies, including solar, wind, hydro, geothermal and biomass. Solar photovoltaics show the greatest price drop, while onshore wind remains the lowest cost renewable technology. The study also notes that the vast majority of the technologies included are low- or zero-carbon sources, suggesting that the countries participating in the study are showing a “clear shift” toward green power and away from fossil fuels.


The study acknowledges that prices can vary by country and market. With that in mind, it cautions that no one technology can be considered to be the cheapest under all circumstances. A variety of factors must always be considered when drawing conclusions about price. These include such varied factors as system costs, market structures, national policies and resource availability.