Technical Classification
Definition
IRENA Global Renewables Cost Report — annual report on renewable energy generation costs worldwide, for the first time with systematic capture of storage LCOS by region. Europe at 0.080 USD/kWh for BESS.
Technical Background
IRENA aggregates data from 190 member states on LCOE and LCOS. Solar LCOE globally at 0.049 USD/kWh (weighted average), onshore wind at 0.033 USD/kWh. BESS LCOS regionally differentiated: Asia-Pacific 0.065, North America 0.075, Europe 0.080 USD/kWh. Financing costs identified as the dominant cost driver.
Risks
Global averages obscure project-specific reality. European financing costs in 2024/25 above historical levels (ECB interest rate pivot). Grid connection costs and permitting timelines not included in LCOS. Regional infrastructure costs vary considerably.
Standards & Regulations
IRENA proprietary methodology (LCOE/LCOS Methodology). IEA WEO methodology as a comparative framework. EU Taxonomy Regulation (sustainable investments). SFDR (Sustainable Finance Disclosure Regulation) for reporting.
Assessment Procedures
Aggregation of national statistics and project databases. Weighted average calculation by installed capacity. Annual validation by expert panel. Regionalization by IRENA subregions.
Typical Deficiencies
Aggregation level too high for project-specific decisions. Time lag in data collection (2024 data published in 2025). No consideration of system costs (integration, grid expansion). LCOS data still in early development.
Relevance for Investors, Insurers & Operators
Investors: macroeconomic framework for asset allocation and market entry decisions. Insurers: contextualizing loss values in a global context. Operators: assessing their own cost position in an international comparison.
Assessment by PV-BESS-Assessor
IRENA provides the most comprehensive global dataset on power generation costs. The 2024 edition documents LCOS values systematically by region for the first time. Europe stands at 0.080 USD/kWh, slightly above the global average.
Impact on Investors
Contextualizes BESS investments: Solar+Storage is cheaper than new gas capacity in many regions. Financing costs remain the decisive profitability factor.
Impact on Assessments
Provides the macroeconomic framework for valuation assessments: How does a BESS project compare to alternatives? PV-BESS-Assessor uses IRENA data to validate long-term price trends.
Technical Risks
Global averages mask regional differences. Financing costs in Europe in 2024/2025 above historical levels. Project-specific factors dominate.
Regulatory Significance
IRENA data is used as a reference by regulatory authorities. Relevant for auction volumes and subsidy levels.
Conclusion by PV-BESS-Assessor
PV-BESS-Assessor uses the IRENA study as a contextual framework. The global perspective helps with classification but does not replace site-specific analysis.
Last updated: 16 June 2026