Wood Mackenzie: "Han Renewable Energy Generation Costs to Become Cheaper Than Coal Next Year"

[Asia Economy Reporter Kim Bo-kyung] It is forecasted that South Korea's renewable energy generation costs will become cheaper than coal power generation costs by next year.

According to the energy industry on the 28th, energy consulting firm Wood Mackenzie stated in a recently released report that "South Korea, China, Thailand, and Vietnam will see the levelized cost of electricity (LCOE) for renewable energy become lower than coal power generation costs next year."

LCOE is the estimated cost of electricity production that considers direct costs such as initial capital investment, capital costs, fuel costs, operation and maintenance costs, carbon pricing, and discount rates to compare the economic feasibility of different power sources.

Wood Mackenzie predicted that next year, South Korea's renewable energy generation costs will reverse with coal power costs for the first time, and by 2030, renewable energy generation costs will be about 30% cheaper than coal power.

Wood Mackenzie also forecasted that in most Asia-Pacific countries, renewable energy generation costs will be on average about 23% lower than coal power costs by 2030.

Currently, renewable energy generation costs are about 16% higher than coal power costs. In the Asia-Pacific region, only India and Australia have renewable energy generation costs cheaper than coal power.

By country, by 2030, Taiwan's renewable energy generation costs are expected to decrease by about 30% compared to coal power costs, and China's by about 40%. India and Australia are analyzed to be 56% and 47% lower, respectively.

Wood Mackenzie stated, "The renewable energy market in the Asia-Pacific will grow rapidly due to the decline in generation costs," adding, "However, government policies remain important to attract more investors and manage the intermittency (generation variability) of renewable energy."

This content was produced with the assistance of AI translation services.