IRENA report, 24/7 Renewables: The Economics of Firm Solar and Wind, highlights that "firm" (round-the-clock) renewable energy systems combining solar, wind, and battery storage are becoming economically capable of delivering reliable electricity at costs increasingly competitive with fossil fuels.
The report shifts the focus from traditional renewable cost metrics such as the Levelised Cost of Electricity (LCOE) toward Firm Levelised Cost of Electricity (F-LCOE), which measures the cost of supplying electricity at high reliability by including storage, backup capacity, and system balancing requirements. IRENA benchmarks this reliability at 95% availability, bringing renewable systems closer to conventional “dispatchable” power sources.
According to the report, rapid technology cost declines have fundamentally changed the economics of clean energy. Since 2010, the global cost of solar PV has fallen by 87%, while Battery Energy Storage Systems (BESS) costs have declined by 93%. Hybrid systems combining solar and wind are also reducing supply variability and lowering the need for excessive overbuilding.
India is identified as one of the leading markets driving this transition. The report highlights India’s extremely low solar generation costs and its use of Round-the-Clock (RTC) renewable tenders as an emerging global benchmark for integrating renewable energy with storage and reliability obligations.
IRENA notes that in high-resource regions such as western India, firm renewable electricity is increasingly approaching fossil-fuel cost benchmarks while offering faster commissioning timelines and lower exposure to fuel-price volatility.
Key Strategic Benchmarks (IRENA 2026)
Technology Cost Declines (2010–2024): Solar PV (-87%), Onshore Wind (-55%), and BESS (-93%).
Reliability Standard: Benchmarked at 95% reliability to ensure parity with dispatchable sources.
F-LCOE Trends: In high-resource regions, firm solar-plus-storage is approaching or below USD 100/MWh.
Hybrid Efficiency: Combining solar and wind reduces the frequency of supply shortfalls and lowers overbuild costs.
Deployment Advantage: Hybrid systems offer faster commissioning (1–2 years) and enhanced energy security.
India Perspective: Cost Competitiveness and Procurement Leadership
India is highlighted as a primary driver of the global transition toward firm renewables, achieving some of the world's most competitive cost trajectories.
Market Competitiveness: In high-quality solar sites like the Thar Desert, the F-LCOE for solar-plus-storage is already approaching fossil fuel benchmarks. In 2025, India’s firm LCOEs are cited between USD 65 and USD 82/MWh, with further declines projected through 2035.
Lowest Global LCOEs: India has achieved some of the lowest global LCOEs for solar PV, ranging from USD 34–39/MWh, reflecting exceptional resource quality.
Best-Practice Tendering: India’s round-the-clock (RTC) renewable tenders are referenced as a global best practice. These tenders mandate minimum utilization thresholds across hybrid solar, wind, and storage portfolios.
High-Availability Outcomes: Recent Indian auctions have demonstrated that hybrid configurations can deliver near-continuous power at 95% availability at costs below USD 60–65/MWh.
Global Benchmark Leader: India is grouped with China, Brazil, and Australia as a leading market where natural resources enable cost-competitive, firm renewable electricity.
What is "Firm Levelised Cost of Electricity" (F-LCOE)?
F-LCOE is a project-level metric that includes the costs of energy storage and the additional generation capacity (overbuild) needed to deliver electricity with high reliability. While standard LCOE only measures the cost of generating power when resources are available, F-LCOE provides a transparent benchmark for comparing "firm" renewables to dispatchable fossil fuels. It essentially calculates the total price of making intermittent solar and wind energy available 24/7.
Policy Relevance
Validates RTC Procurement: The report confirms that India’s RTC tender model is the most effective commercial mechanism for procuring firm clean power at scale.
Supports Grid Decarbonization: Reaching a 95% availability threshold allows India to integrate higher shares of renewables without compromising the stability of the national grid.
Drives Resource-Centric Planning: The cost-competitiveness of the Thar Desert (USD 65–82/MWh) underscores the need for dedicated green energy corridors from high-irradiance zones.
Enhances Energy Security: Transitioning to firm renewables provides a long-term hedge against global commodity market volatility, as solar and wind costs are decoupled from fuel prices.
Incentivizes Hybridization: The findings encourage a shift from standalone solar or wind projects toward integrated "Solar-Wind-Storage" portfolios to minimize supply shortfalls.
Follow the Full Report Here: 24 / 7 RENEWABLES THE ECONOMICS OF FIRM SOLAR AND WIND