BAKU, Azerbaijan, July 14. The global average cost for newly commissioned hydropower projects in 2021 was $0.048 per kWh, which is an increase of 4 percent, compared to 2020 ($0.046 per kWh), Trend reports via the latest publication from the International Renewable Energy Agency (IRENA).
According to the report, this figure is also 23 percent higher than the projects commissioned in 2010.
“With the cost of the newly commissioned fossil-fuel fired capacity ranging between $0.054 per kWh and $0.167 per kWh, 97 percent of the hydropower projects commissioned in 2021 had a Levelized Cost of Electricity (LCOE) within or lower than this range. Moreover, 85 percent of the hydropower capacity commissioned in 2021 had an LCOE lower than the cheapest new fossil fuel-fired cost option,” the report noted.
As the IRENA explained, the increase in cost since 2010 has been driven by an increase in installed costs, especially in Asia, which were caused by an increase in the number of projects with more expensive development conditions compared to previous projects. This is likely due to an increase in the number of projects in places with more complex operating conditions.
Meanwhile, the global total installed cost of newly commissioned hydropower projects rose to $2,135 per kWh ($1,939 per kWh in 2020).
Also, the global weighted average capacity factor for hydropower projects commissioned from 2010 through 2021 varied between 44 percent in 2010 (the lowest index) to 51 percent in 2015 (the highest index), while for projects commissioned in 2021it was 45 percent.
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