A new report by the International Renewable Energy Agency has found that average costs for wind and solar technology electricity could reduce dramatically, even going as far to remove the price barrier for green power. It has concluded that by 2025 the average cost of electricity could drop by 59pc for solar PV, 35pc for offshore wind developments and by 26pc for onshore wind, when compared to last year's costs.

This means that in under ten years the average electricity cost across the world, generated from wind and solar, will drop to 4-5 pennies per kWh, which will become a hugely compelling price point for consumers and investors alike.

This trend would continue the downward cost movement of the last few years, driven by both the market and technological improvements. The further reduction in cost is set to further add impetus to the drive to move towards renewables and away from fossil fuels.

A spokesperson from University of Wisconsin's environmental studies academic team has said that the figures were both realistic and significant, with solar PV having already achieved competitive status in prime locations. The further reductions will act to bring affordability to more people.

Across much of the globe, renewable energies have already reached a comparable cost point with fossil fuels or are seeing cost reductions. An energy analysis report by Bloomberg also estimated a sharp drop in the cost of green energy over the coming decade, and the peak period for fossil fuels is now expected to be 2025. 

IRENA goes forward by anticipating that the costs of wind and solar will drop far beyond this date. However, the report makes the point that these attractive price drops will only happen if government policies are in place to support development.