IRENA reports that renewables are 90% cheaper than fossil fuels in the world.

A report released by the International Renewable Energy Agency on Tuesday showed that most renewable energy newly installed is cheaper to generate electricity than fossil fuels.

Why it's important

At the COP28 U.N. Climate Conference in 2023, a target was set to triple the amount renewables such as wind and sun to stay within the 1.5 degree Celsius limit (2.7 Fahrenheit).

By the Numbers

Globally, 582 gigawatts (GW) of renewable energy capacity were added in the last year. This includes hydropower, solar power, wind, and geothermal. This is nearly 20% more than 2023. The report stated that 91% of utility-scale projects were cheaper than fossil fuel alternatives.

On average, solar photovoltaic projects (PV) were 41% less expensive than fossil fuel alternatives such as gas.

According to the report, battery energy storage system costs have declined by 93% in comparison to 2010.

CONTEXT

Since 2010, the cost of renewable technologies has decreased due to technological advancements and economies of size.

IRENA stated that continued reductions were expected, but there are challenges in the near term, such as geopolitical tensions or trade tariffs, and bottlenecks of raw material production.

KEY QUOTE

"If you look at all the renewables that are currently operating, in 2024, the avoided costs of fossil fuels could reach up to $467 Billion. "New renewable power is cheaper than fossil fuels, providing a clear path towards affordable, sustainable, and secure energy", said Francesco La Camera.

This progress is not assured. "However, this progress is not guaranteed."

(source: Reuters)