The global weighted average levelized cost of electricity (LCOE) of utility-scale solar PV is forecast to drop by 40% by 2020, according to a new report from the International Renewable Energy Agency (IRENA).

This follows a 73% drop in the LCOE of utility-scale solar PV between 2010 and 2017, IRENA said.

Technology improvements, competitive procurement and a widening base of international project developers now represent the "three main cost reduction drivers" for renewable energy projects, IRENA said.

"Record low auction prices for solar PV in 2016 and 2017 in Dubai, Mexico, Peru, Chile, Abu Dhabi and Saudi Arabia have shown that an LCOE of $30/MWh is possible from 2018 and beyond, given the right conditions," IRENA said.

These conditions include strong solar resources, a favourable regulatory framework, low offtake and country risks, a strong local engineering base and supportive tax regimes, it said.