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O&M COSTS Solar PV Depending on the commissioning year, a different O&M cost assumption is used for the calculation of the solar PV LCOE estimates calculated in this report. An additional distinction is made depending on whether the project has been commissioned in a country belonging to the OECD or not (Table A1.2). Onshore wind Based on the annual range of O&M onshore wind costs in China, India and the rest of the world for the 448project subset with O&M data in the IRENA Renewable Cost Database, the largest share of O&M costs is represented by maintenance operations, which have a weighted average of 67%, followed by salaries at 14% and materials at 7% (IRENA, 2018a). Based on IRENA’s O&M data and new project- and country-level data IRENA has gathered, the average O&M cost assumptions used for onshore wind LCOE calculations falls between USD 0.006/kWh and USD 0.02/kWh. Offshore wind The O&M cost assumptions used are based on estimates that fall between USD 0.017/kWh and USD 0.030/kWh, when converted from average costs in USD/kW/year (IEA et al., 2018; Ørsted, 2019; Stehly et al., 2018). The lower range is seen in projects in China and established European markets with sites closer to shore, while the latter, highercost range is seen in less-established offshore wind markets or markets with harsher metocean conditions, like Japan. TOTAL INSTALLED COST BREAKDOWN: DETAILED CATEGORIES FOR SOLAR PV IRENA has for some years collected cost data on a consistent basis at a detailed level for a selection of PV markets. In addition to tracking average module and inverter costs, the balance of system costs are broken down into three broad categories: non-module and inverter hardware, installation costs, and soft costs. These three categories are composed of more detailed sub-categories which can greater understanding of the drivers of solar PV balance of system (BoS) costs and are the basis for such analysis in this report (Table A1.3). Table A1.2 O&M cost assumptions for the LCOE calculation of PV projects ANNNEX Year OECD 2019 USD/kW/year Non-OECD 2019 USD/kW/year 2010 25.9 24.4 2011 22.9 22.4 2012 22.3 17.4 2013 21.8 14.6 2014 21.3 13.0 2015 20.7 11.9 2016 20.2 10.8 2017 20.6 10.4 2018 19.2 9.9 2019 18.3 9.5 Source: IRENA Renewable Cost Database 139PDF Image | RENEWABLE POWER GENERATION COSTS IN 2019
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