Most Asia Pacific markets can expect to see cheaper levelised cost of electricity (LCOE) for renewables compared to coal by 2030, according to a report from Wood Mackenzie.

New investments in renewables power are expected to have 23% lower cost than coal power on average by the end of the decade. Renewable power currently costs about 16% more on average compared to coal power, but has been at a discount to gas-fired power since 2019.

According to Shrestha, India and Australia are the only markets in Asia Pacific with LCOE for renewables cheaper than new-build coal. By 2030, renewables power in India and Australia are expected to be 56% and 47% cheaper than new-build coal, respectively.

Wood Mackenzie expects a modest carbon price to impact the LCOE of coal and gas in Asia Pacific. In the region, carbon prices are pushing up LCOE by more than 4% for coal and gas today and could double by 2030.

Guest post from Asian Power