Wind and solar power got more expensive in Asia last year in a bucking of historical trends – but still closed the gap on fossil fuels and will revert to a downward course once current exceptional market pressures ease, said analysts at Wood Mackenzie.

The research group said an energy crisis “frenzy” in 2021 pushed up average Asia-Pacific levelised cost of energy (LCOE) for new solar projects by 9% to $86/MWh and onshore wind by 2% to $103/MWh.

Renewables-based generation was hit by factors such as sharply increasing equipment and logistics cost that fuelled supply chain inflation, squeezing new projects.