FUZHOU, Sept. 18 (Xinhua) -- Solar power combined with energy storage has become the most affordable and reliable solution to accelerating the global transition from fossil fuels, according to a report released on Wednesday by the International Renewable Energy Agency (IRENA) in partnership with CATL, China's leading battery manufacturer.

The findings were announced by Ilina Stefanova, head of the Coalition for Action at IRENA, during a keynote address at the World Energy Storage Conference in Ningde, east China's Fujian Province.

"Solar PV paired with storage is now one of the most cost-effective ways to meet growing electricity demand," Stefanova said. "We have the technology and knowledge to accelerate progress. What we need now is aligned policy and investment."

The report, Key Enablers for the Energy Transition: Solar PV and Storage, offers strong evidence that the solar-storage combination is not only technically viable but is increasingly outcompeting fossil fuels on cost.

Between 2010 and 2024, the levelized cost of electricity (LCOE) from utility-scale solar PV fell by 90 percent to 0.043 U.S. dollars per kilowatt-hour -- 41 percent less than the cheapest fossil fuel alternative.

Over the same period, battery storage project costs plummeted by 93 percent from 2,571 U.S. dollars per kilowatt-hour to 192 U.S. dollars.

"This cost reduction isn't just incremental. It's transformational," Stefanova stressed.

As lithium-ion batteries evolve to provide longer-duration storage, they allow solar energy to cover evening demand peaks and provide grid stability.

The report highlights that energy storage helps avoid costly grid upgrades, reduces renewable energy curtailment and improves transmission efficiency.

To realize this potential, the report advises governments to treat energy storage as a critical aspect of grid planning. An annual investment of 720 billion U.S. dollars is needed through 2030, yet only 51 percent of that amount was invested in 2023.

The report also urges electricity market reforms, encouraging the exploration of new-energy storage business models such as capacity leasing.

Leading markets such as Italy, the United States and the United Kingdom are already allowing energy storage providers to earn revenue from energy arbitrage, capacity services and ancillary support.

This is IRENA's first report dedicated primarily to energy storage, a result of its first deep collaboration with a Chinese company. Enditem