24/7 Renewable Electricity: Firming Solar and Wind with Battery Storage
| Sector | Renewable Energy |
|---|---|
| Sub-sector | Power Generation and Energy Storage |
| Geographic Scope | Global |
| Technologies | Solar PV, Onshore Wind and Battery Energy Storage |
| Primary Source | International Renewable Energy Agency (IRENA) |
| Publication Year | 2026 |
| Related SDGs | SDG 7 • SDG 9 • SDG 13 |
Key Takeaways
- Solar and wind power have become among the most cost-competitive sources of new electricity generation, but their variable output creates challenges for electricity-system adequacy and flexibility.
- Combining renewable generation with battery energy storage can shift electricity from periods of high renewable production to periods of higher demand.
- Firm renewable electricity refers to renewable generation configured to provide a defined level of electricity supply with a specified degree of reliability.
- Firm levelised cost of electricity (firm LCOE) provides a way of assessing the cost of delivering electricity at a specified reliability level rather than measuring the cost of generation alone.
- IRENA's 2026 analysis shows that the cost of firm renewable electricity has declined significantly, particularly in locations with strong solar and wind resources.
- The economics of firm renewable electricity depend on resource quality, technology costs, system configuration, storage requirements, financing and the reliability level being targeted.
- Firm renewable systems do not necessarily need to operate as isolated power plants. Transmission, demand-side flexibility, diverse generation and other forms of storage can also contribute to system adequacy.
Introduction
Solar photovoltaic (PV) and wind power have become major components of the global electricity transition. Their rapid deployment has been supported by improvements in technology, economies of scale and substantial reductions in generation costs.
However, the electricity produced by solar and wind varies according to weather and time of day. Solar PV generates electricity during daylight hours, while wind generation depends on wind conditions. Electricity demand, meanwhile, continues throughout the day and night and does not necessarily coincide with periods of renewable generation.
As the share of variable renewable energy increases, electricity systems therefore require greater flexibility to ensure that supply remains available when needed.
One approach is to combine renewable generation with battery energy storage. Electricity generated when solar or wind resources are strong can be stored and subsequently delivered when renewable output falls or demand increases.
This creates the possibility of renewable electricity systems capable of supplying power for extended periods with a high degree of reliability.
The International Renewable Energy Agency (IRENA) examined this emerging model in its 2026 report 24/7 Renewables: The Economics of Firm Solar and Wind. The report evaluates co-located solar PV, onshore wind and battery energy storage systems and introduces firm levelised cost of electricity (firm LCOE) as a benchmark for assessing the cost of delivering reliable electricity from such systems.
Why 24/7 Renewable Electricity Matters
The central challenge in integrating high shares of solar and wind is not simply generating enough electricity over an entire year. It is ensuring that sufficient electricity is available at the right time.
A power system must continuously balance electricity supply and demand. Periods of high solar generation may coincide with relatively low demand, while electricity demand can remain high after sunset when solar generation falls.
Similarly, periods of low wind speeds can reduce wind generation for hours or, in some circumstances, longer periods.
These differences create a need for flexibility.
Flexibility can be provided through several approaches, including:
- battery energy storage;
- pumped-storage hydropower;
- flexible generation;
- transmission interconnections;
- demand-side management;
- electricity market mechanisms;
- sector coupling;
- overbuilding renewable generation;
- other forms of short- and long-duration energy storage.
Battery storage is particularly useful for shifting electricity over relatively short time periods. When combined with appropriately sized solar and wind generation, it can increase the amount of renewable electricity available during periods of high demand.
What Does "Firm" Renewable Electricity Mean?
In electricity planning, firm power generally refers to electricity supply that can be relied upon to meet a defined level of demand with a specified degree of reliability.
The term should not be interpreted as meaning that a renewable power plant can produce exactly the same amount of electricity under every condition without support. Instead, the concept describes the performance of a configured system that combines generation, storage and other resources to meet a defined reliability requirement.
For example, a solar PV plant produces electricity only when solar radiation is available. Adding battery storage allows part of that electricity to be shifted to later periods.
A combined solar, wind and storage system can provide an even broader generation profile because wind production may occur during periods when solar generation is unavailable.
The appropriate combination depends on:
- local solar resources;
- local wind resources;
- electricity demand patterns;
- storage duration;
- renewable generation capacity;
- desired reliability;
- transmission availability;
- system operating conditions.
The concept of firm power is therefore a system-design question rather than simply a property of an individual renewable technology.
From LCOE to Firm LCOE
The conventional levelised cost of electricity (LCOE) is widely used to compare the average cost of generating electricity from different technologies over the lifetime of a project.
However, conventional LCOE does not fully capture the value or cost of the timing of electricity production.
A solar plant may have a low LCOE because it produces electricity at a relatively low cost, but that electricity is concentrated during daylight hours. If the objective is to supply electricity continuously or at a specified reliability level, additional resources may be required.
Firm LCOE addresses this issue by incorporating the cost of configuring renewable generation and storage to deliver electricity according to a defined reliability requirement.
| Metric | Main Question |
|---|---|
| Conventional LCOE | How much does the electricity generated by a project cost on average over its lifetime? |
| Firm LCOE | How much does it cost to configure a renewable system to deliver electricity at a specified reliability level? |
Firm LCOE is therefore particularly useful when comparing renewable systems designed to provide more predictable electricity output with conventional generation options that are inherently dispatchable.
Components of a Firm Renewable System
A firm renewable electricity system can contain several components that work together to balance generation and demand.
Solar Photovoltaic Generation
Solar PV provides electricity during periods of solar availability. It is particularly valuable in regions with high solar irradiation, where large amounts of electricity can be generated at relatively low cost.
However, solar generation falls to zero at night and can also decline during periods of cloud cover or adverse weather.
Onshore Wind Generation
Wind power can complement solar generation because its production profile does not necessarily coincide with solar output.
In locations with good wind resources, combining wind and solar can reduce periods when both resources are simultaneously unavailable.
Battery Energy Storage
Battery energy storage systems (BESS) store electricity during periods of surplus generation and release it when generation falls or demand increases.
Battery storage can provide:
- intra-day energy shifting;
- evening electricity supply;
- short-term balancing;
- frequency and ancillary services;
- reduction of renewable curtailment;
- improved utilisation of renewable generation.
The required battery capacity depends on the generation profile, demand profile and reliability target.
Grid and Transmission Infrastructure
Firm renewable electricity does not necessarily require every project to operate independently.
Transmission networks can allow electricity to be exchanged between locations with different renewable resource conditions and demand patterns. A geographically diversified power system can therefore reduce dependence on storage at individual generation sites.
Interconnections can also allow surplus renewable electricity in one location to serve demand elsewhere.
How Solar, Wind and Storage Work Together
The value of combining solar, wind and storage comes from the different characteristics of each technology.
During periods of strong solar production, electricity can be used directly by consumers while excess generation is directed to storage.
When solar generation falls in the evening, stored electricity can be discharged.
Wind generation can provide additional electricity during periods when solar output is low. When wind and solar production are both strong, excess electricity can be stored or used by flexible loads.
A simplified operating pattern can therefore be represented as:
| Period | Renewable Generation | Battery Role |
|---|---|---|
| High solar production | Solar generation exceeds immediate demand. | Battery charges using surplus electricity. |
| Evening | Solar output declines while demand may remain high. | Battery discharges to support demand. |
| High wind production | Wind generation contributes additional electricity. | Surplus electricity can charge storage or serve flexible demand. |
| Low renewable output | Solar and wind generation are reduced. | Stored electricity provides additional supply, subject to available capacity. |
The actual operating strategy depends on system design, electricity prices, grid conditions and the required reliability level.
The Economics of Firm Renewable Electricity
The economic value of a firm renewable electricity system depends on the amount of generation and storage required to meet a specified reliability target.
A conventional solar or wind project can have a low levelised cost of electricity because it produces electricity at a relatively low average cost. However, making that electricity available during periods of low renewable output requires additional capacity, storage or other flexibility measures.
Firm LCOE incorporates these additional system requirements.
The resulting cost depends on the configuration of the project, the quality of the renewable resources, the cost and duration of energy storage, the reliability target and the financing conditions.
Reliability Targets
Firm renewable electricity is not associated with a single universal reliability level.
A system designed to provide electricity for most hours of the year will require less firming capacity than one designed to meet demand with extremely high reliability.
For this reason, IRENA's analysis evaluates firm LCOE at different reliability levels.
As the reliability target increases, the system generally requires additional renewable generation, battery storage or other measures to cover increasingly rare periods of low renewable output.
This creates a trade-off:
- higher reliability generally requires greater investment;
- lower reliability requirements can reduce the amount of firming capacity required;
- the economically appropriate reliability level depends on the needs of the electricity system and the value placed on uninterrupted supply.
Reliability should therefore be defined explicitly when comparing the economics of firm renewable systems.
Cost Drivers of Firm Renewable Electricity
Several factors determine the cost of delivering firm electricity from solar, wind and storage.
Renewable Resource Quality
The quality and complementarity of solar and wind resources are among the most important determinants of system economics.
Locations with strong solar irradiation can generate more electricity from a given amount of installed PV capacity. Similarly, locations with strong and relatively consistent wind resources can achieve higher wind capacity factors.
The combination of resources is particularly important. If wind generation tends to increase during periods when solar output is low, combining the two technologies can reduce the amount of battery storage needed to achieve a given reliability target.
Battery Storage Costs
Battery storage represents an important component of many firm renewable configurations.
Storage costs depend on:
- battery technology;
- storage capacity;
- power rating;
- cycle life;
- efficiency;
- replacement requirements;
- financing costs.
The duration of storage is particularly important.
A battery designed to discharge for one or two hours has a different economic function from a battery designed to provide electricity for many hours. Longer-duration storage can help cover extended periods of low renewable generation but increases the investment required.
Renewable Overbuilding
One strategy for reducing the amount of storage required is to install more renewable generation capacity than would be needed to meet average electricity demand.
Additional solar or wind capacity can increase the probability that sufficient renewable electricity is available to charge batteries and serve demand during periods of lower resource availability.
However, overbuilding can also result in periods of surplus electricity. If this electricity cannot be stored, exported or consumed by flexible loads, it may be curtailed.
The economically optimal balance therefore involves a trade-off between:
- additional renewable generation;
- battery capacity;
- electricity curtailment;
- transmission;
- demand flexibility.
System Configuration
Firm LCOE depends strongly on how the system is configured.
Possible configurations include:
- solar PV with battery storage;
- wind with battery storage;
- solar PV and wind with battery storage;
- renewable generation combined with grid imports;
- renewable generation supported by other forms of storage;
- renewable generation supported by flexible generation.
Combining solar and wind can provide advantages where the two resources have complementary generation profiles.
Cost Trends
IRENA's 2026 analysis indicates that the cost of firm renewable electricity has declined substantially as solar PV, wind and battery technologies have become cheaper and more efficient.
The report finds that in high-quality solar and wind resource locations, co-located renewable systems can increasingly provide reliable electricity at costs that are competitive with new fossil-fuel generation.
For solar-plus-battery configurations, IRENA reports that firm LCOE in the assessed high-resource locations declined from levels above USD 100/MWh in 2020 to approximately USD 54–82/MWh in 2025, depending on the location and configuration.
The analysis also indicates that the lowest-cost projects can achieve substantially lower firm LCOEs.
These figures should not be interpreted as a universal price for 24/7 renewable electricity. Actual project costs vary according to resource quality, system design, financing, reliability requirements, land and infrastructure costs and local market conditions.
Why Costs Differ Between Countries
The cost of firm renewable electricity varies considerably between markets.
Important factors include:
- solar and wind resource quality;
- equipment costs;
- local construction costs;
- financing costs;
- interest rates;
- currency risk;
- taxes and import duties;
- grid connection costs;
- land availability;
- storage requirements;
- transmission infrastructure;
- market and regulatory conditions.
Financing conditions are particularly important in emerging and developing markets.
Two projects using identical technologies can therefore have significantly different costs if one is developed in a market with lower financing costs and stronger infrastructure while the other faces higher borrowing costs and greater project risks.
Solar Plus Storage
Solar PV combined with battery storage is one of the most straightforward approaches to firming renewable electricity.
Solar generation can charge batteries during periods of high solar output, while stored electricity can subsequently be discharged during the evening and other periods of low solar production.
The economics depend on the relationship between solar generation, electricity demand and battery capacity.
Increasing the amount of solar capacity can reduce the frequency and duration of periods in which the battery is unable to meet demand. However, additional solar capacity can also increase periods of surplus generation and curtailment.
The optimal configuration therefore depends on the reliability target and the specific resource and demand characteristics of the project location.
Wind Plus Storage
Wind power combined with battery storage can also provide firm electricity.
Unlike solar PV, wind generation can occur throughout the day and night. In locations with favourable wind resources, this can reduce dependence on battery storage compared with a solar-only configuration.
However, wind output can also experience periods of low generation. Storage or complementary renewable generation may therefore still be required to achieve high reliability.
Solar-Wind Hybrid Systems
Combining solar PV and wind power can improve the overall utilisation of renewable resources when their generation patterns are complementary.
For example, solar generation may dominate during daylight hours while wind generation contributes during evening or nighttime periods.
A hybrid system can therefore reduce the duration of periods during which renewable generation is simultaneously low.
When combined with battery storage, this can reduce the amount of storage required for a particular reliability target compared with relying on a single variable renewable resource.
The benefits are location-specific and depend on the correlation between solar and wind generation profiles.
The Role of Battery Storage
Battery storage provides several functions within a firm renewable electricity system.
These include:
- shifting electricity from periods of high renewable generation to periods of high demand;
- reducing renewable-energy curtailment;
- providing short-term balancing;
- supporting system frequency;
- reducing periods of electricity shortage;
- improving the utilisation of renewable generation.
However, batteries are not a universal solution for every reliability challenge.
The economic value of a battery depends on its power capacity, energy capacity, duration, cycling requirements and expected lifetime.
A system requiring several days of backup may require a combination of technologies rather than batteries alone.
Beyond Batteries
Firm renewable electricity does not necessarily depend exclusively on battery storage.
Other flexibility resources can complement variable renewable generation.
These include:
- pumped-storage hydropower;
- thermal energy storage;
- hydrogen and other energy carriers;
- flexible hydropower;
- demand-response programmes;
- transmission interconnections;
- flexible electricity consumption;
- other long-duration energy storage technologies.
The appropriate combination depends on local resources, system characteristics and economic conditions.
In larger interconnected electricity systems, geographical diversification and transmission can be particularly important because renewable generation and electricity demand can vary across locations.
Curtailment and Overbuilding
Increasing renewable capacity can sometimes produce more electricity than can be consumed or stored at a particular moment.
This surplus electricity may be curtailed, meaning that renewable generation is deliberately reduced even though the resource is available.
Curtailment is not necessarily an indication of poor system design. Some degree of curtailment can be economically efficient if installing additional renewable capacity reduces the need for expensive storage or backup capacity.
The relevant question is therefore not whether curtailment can be eliminated completely, but whether the combined cost of generation, storage, curtailment and other flexibility resources is economically appropriate for the required reliability level.
Comparing Firm Renewables with Fossil Generation
Conventional fossil-fuel power plants have historically provided dispatchable electricity that can be generated when required, subject to fuel availability and plant operating constraints.
Firm renewable systems seek to provide a similar electricity-service characteristic through a combination of renewable generation and flexibility resources.
IRENA's 2026 analysis indicates that some solar, wind and storage configurations can already achieve firm electricity costs that are competitive with new fossil-fuel generation, particularly in locations with strong renewable resources.
However, comparisons should be made carefully.
A meaningful comparison should consider:
- the same reliability requirement;
- comparable project lifetimes;
- financing assumptions;
- fuel-price assumptions;
- grid connection costs;
- system integration costs;
- storage requirements;
- environmental and social externalities where relevant.
Comparing the conventional LCOE of a solar plant with the fuel and generation cost of a dispatchable fossil-fuel plant does not by itself provide a complete comparison of their ability to deliver electricity when required.
Implications for Developing Countries
Firm renewable electricity can be particularly relevant to developing countries seeking to expand electricity supply while reducing dependence on imported fossil fuels.
Countries with strong solar and wind resources may be able to combine renewable generation and storage to increase electricity supply while reducing exposure to fuel-price volatility.
Potential applications include:
- national electricity grids;
- regional power pools;
- isolated power systems;
- renewable-based mini-grids;
- industrial power supply;
- commercial electricity consumers;
- electricity supply for critical infrastructure.
However, the economic case will depend strongly on local financing costs, grid infrastructure, renewable resources and regulatory conditions.
For countries with weak grids, investments in transmission, distribution and system flexibility may need to accompany renewable generation and storage investments.
Implications for Africa
Many African countries have substantial solar and wind resources, creating significant potential for renewable electricity generation.
The economics of firm renewable systems may be particularly relevant in countries where electricity systems face high fuel costs, supply shortages or dependence on imported fossil fuels.
However, renewable resource quality alone does not determine project viability.
African power systems may also face:
- high cost of capital;
- limited transmission infrastructure;
- foreign-exchange risk;
- limited access to long-term finance;
- weak or evolving electricity markets;
- difficulties integrating variable generation;
- limited local technical capacity.
Reducing these barriers can be as important as reducing technology costs.
Regional electricity interconnections and power pools can also improve the economics of renewable integration by allowing electricity to move between areas with different demand and renewable-generation profiles.
Key Considerations for Project Developers and Policymakers
When assessing a firm renewable electricity project, decision-makers should consider the entire system rather than evaluating generation and storage technologies independently.
Important questions include:
| Question | Relevance |
|---|---|
| What reliability level is required? | Determines how much firming capacity is necessary. |
| What are the local solar and wind resources? | Determines renewable generation potential. |
| How complementary are solar and wind profiles? | Influences storage requirements. |
| How much storage is required? | Strongly affects investment costs. |
| What level of renewable overbuild is economical? | Determines the trade-off between additional generation, storage and curtailment. |
| What is the cost of capital? | Influences the lifetime cost of the project. |
| Is adequate transmission available? | Determines how electricity can be moved between locations. |
| Can demand be shifted? | Reduces the amount of firm capacity required. |
| How will equipment be maintained and replaced? | Influences long-term project sustainability. |
The most economical solution will therefore differ from one electricity system to another.
Applications of Firm Renewable Electricity
The concept of firm renewable electricity can be applied at different scales, from individual facilities to interconnected national and regional power systems.
Utility-Scale Electricity Supply
At utility scale, solar PV, wind and battery storage can be combined to provide a predictable electricity supply to the grid.
Such systems can be used to:
- meet peak electricity demand;
- reduce dependence on fossil-fuel generation;
- provide energy during periods of low renewable generation;
- reduce renewable-energy curtailment;
- provide ancillary grid services;
- support the integration of higher shares of variable renewable energy.
The appropriate configuration depends on the characteristics of the electricity system and the reliability requirement.
Renewable-Based Mini-Grids
Firm renewable systems can also be applied to isolated and weak-grid mini-grids.
In rural areas, combining solar PV or wind with battery storage can extend electricity availability beyond periods of renewable generation.
This can be particularly valuable for:
- households;
- schools;
- health facilities;
- telecommunications infrastructure;
- water pumping;
- agricultural processing;
- refrigeration and cold storage;
- small businesses.
For mini-grids, system sizing should account for both current electricity demand and expected future growth.
Industrial and Commercial Electricity Supply
Industrial and commercial consumers often require predictable electricity supply to maintain production.
Firm renewable systems can provide an alternative or complement to grid electricity and conventional backup generation.
The economic attractiveness depends on factors such as electricity tariffs, diesel or gas prices, reliability of the existing grid, financing conditions and the customer's electricity demand profile.
Policy and Market Considerations
The falling cost of renewable generation and battery storage does not automatically result in rapid deployment of firm renewable systems. Policy and market conditions strongly influence whether projects can be financed and connected to electricity systems.
Electricity Market Design
Electricity markets need mechanisms that appropriately value flexibility, capacity and reliability.
A renewable project that provides electricity during periods of high system demand can have greater system value than a project that produces the same amount of electricity only during periods of low demand.
Market mechanisms may therefore need to recognise:
- capacity availability;
- flexibility;
- ancillary services;
- energy delivered during periods of system stress;
- storage services.
Grid Planning
Transmission and distribution infrastructure can significantly affect the economics of firm renewable electricity.
Strong transmission networks allow electricity to move between locations with different renewable-resource conditions and demand patterns.
This can reduce the amount of storage or backup capacity required at individual locations.
Grid planning should therefore consider renewable generation, storage and transmission as interconnected components of the electricity system.
Financing
The cost of capital is an important determinant of renewable electricity costs.
Renewable projects generally have high upfront capital requirements but relatively low operating and fuel costs. Higher financing costs can therefore significantly increase the lifetime cost of electricity.
Reducing investment risk through stable regulation, credible policies, appropriate contractual arrangements and access to long-term finance can improve the competitiveness of firm renewable projects.
This issue is particularly important in emerging and developing markets where financing costs can be significantly higher than in mature electricity markets.
Policy Support
Governments can support the development of firm renewable electricity through measures such as:
- competitive procurement;
- auctions;
- long-term power purchase agreements;
- contracts for difference;
- capacity mechanisms;
- storage incentives;
- grid investment;
- concessional finance;
- risk-mitigation instruments.
The appropriate policy instrument depends on the structure and maturity of the electricity market.
Challenges and Limitations
Although firm renewable electricity is becoming increasingly competitive, several challenges remain.
Resource Variability
Solar and wind generation remain dependent on weather conditions. Even when combined, there can be periods when renewable output is lower than expected.
System design must therefore account for periods of low renewable availability rather than relying solely on average annual generation.
Storage Duration
Battery storage is particularly effective for shifting electricity over relatively short periods. Longer periods of low renewable generation may require larger storage systems or complementary technologies.
The appropriate storage duration depends on the reliability requirement and local renewable-resource characteristics.
Cost of Capital
Technology costs are only one component of the total cost of a renewable project.
High financing costs can significantly affect the economics of capital-intensive solar, wind and storage projects.
This can create a particular challenge for developing countries, where access to affordable long-term finance may be limited.
Grid Constraints
A renewable project may have strong economic potential but still face difficulties if transmission capacity is insufficient.
Grid congestion can restrict the amount of renewable electricity that can be delivered to consumers and may increase curtailment.
Investment in transmission and distribution infrastructure is therefore an important component of large-scale renewable deployment.
Technology Replacement
Battery storage systems have finite operating lives and may require augmentation or replacement during the lifetime of a renewable project.
Financial models should therefore account for battery degradation, replacement costs and changes in technology costs over time.
System-Level Optimisation
Optimising a firm renewable system requires consideration of multiple variables simultaneously.
Installing more renewable generation may reduce storage requirements but increase curtailment. Installing additional storage may reduce the need for overbuilding but increase capital costs.
The optimal solution is therefore determined by the interaction between:
- renewable generation capacity;
- storage capacity;
- storage duration;
- transmission;
- demand flexibility;
- electricity prices;
- reliability requirements.
Future Outlook
The economics of firm renewable electricity are expected to continue evolving as the costs and performance of solar PV, wind turbines and battery storage improve.
Several developments could influence future deployment.
Continued Decline in Technology Costs
Further improvements in manufacturing, efficiency, supply chains and battery technology could reduce the cost of firm renewable electricity.
Longer-duration storage technologies could also expand the range of applications in which renewable systems can provide reliable electricity.
Increasing Electricity Demand
Electrification of transport, industry, buildings and other sectors is expected to increase electricity demand in many countries.
This creates additional opportunities for renewable generation while increasing the importance of reliable and flexible electricity supply.
Digitalisation and Advanced System Management
Digital monitoring, forecasting and automated control can improve the operation of renewable and storage systems.
Better forecasting of solar and wind output can allow operators to optimise battery charging and discharging while reducing the need for conventional backup generation.
Regional Electricity Integration
Greater interconnection between electricity systems can allow countries and regions to share renewable resources and balance variations in generation and demand.
This can be particularly important in regions with substantial differences in renewable-resource availability and electricity demand.
Emerging Storage Technologies
Lithium-ion batteries currently dominate many stationary storage applications, but other technologies are being developed for longer-duration storage.
These include:
- flow batteries;
- thermal energy storage;
- compressed-air energy storage;
- pumped-storage hydropower;
- hydrogen-based storage;
- other emerging long-duration technologies.
The increasing availability of storage options could provide additional flexibility for renewable-heavy electricity systems.
Considerations for Africa
Africa has some of the world's strongest solar resources and significant wind potential. At the same time, many African electricity systems face electricity shortages, high generation costs, limited grid infrastructure and dependence on imported fossil fuels.
Firm renewable electricity could therefore contribute to both energy security and decarbonisation.
Potential applications include:
- utility-scale renewable power plants;
- renewable-based mini-grids;
- industrial captive power;
- commercial electricity supply;
- rural electrification;
- regional electricity trade;
- replacement of diesel-based generation.
However, deployment will depend on more than resource availability.
Important enabling conditions include:
- access to affordable finance;
- stronger electricity networks;
- appropriate regulatory frameworks;
- reliable power markets;
- technical capacity;
- appropriate procurement mechanisms;
- regional interconnection;
- long-term investment planning.
Regional power pools can be particularly valuable because interconnection allows countries to share electricity resources and reduce the need for every system to independently maintain large amounts of backup capacity.
Conclusion
Solar PV and wind power have become increasingly competitive sources of new electricity generation, but their variable output means that renewable generation alone does not always correspond to the timing of electricity demand.
Firm renewable electricity addresses this challenge by combining renewable generation with storage and other flexibility resources to provide electricity at a defined level of reliability.
The economics of this approach have improved rapidly. IRENA's 2026 analysis shows that co-located solar, wind and battery systems can already provide round-the-clock electricity at competitive costs in locations with strong renewable resources. The report also identifies technology costs, renewable-resource quality and system configuration as major determinants of firm renewable electricity costs.
However, there is no single configuration that is optimal everywhere. The appropriate combination of solar, wind, storage, transmission and demand flexibility depends on local resource conditions, electricity demand, financing costs and the required reliability level.
For developing countries, firm renewable electricity can provide an opportunity to expand reliable electricity supply while reducing exposure to fossil-fuel prices and supporting broader energy-transition objectives. Achieving this potential will require not only continued technology-cost reductions but also investment in grids, storage, finance, regulation and institutional capacity.
The transition towards 24/7 renewable electricity should therefore be understood as a system-level transformation rather than simply the deployment of more solar panels and wind turbines.
See Also
External Links
- IRENA: 24/7 Renewables: The Economics of Firm Solar and Wind
- IRENA – International Renewable Energy Agency
- IRENA: 24/7 Renewables Outcompete Fossil Fuels on Costs
References
- IRENA (2026). 24/7 Renewables: The Economics of Firm Solar and Wind. International Renewable Energy Agency, Abu Dhabi.
Attribution and Licence
This article is an independently structured synthesis of information from the International Renewable Energy Agency (IRENA) publication 24/7 Renewables: The Economics of Firm Solar and Wind (2026). The source publication is available from IRENA for further consultation.
The article has been prepared as an educational knowledge resource for Energypedia. Readers should consult the original IRENA publication for the complete methodology, assumptions, datasets, scenarios and detailed country-level results.
