IRENA report: Record growth in renewables fuels cost-competitiveness

A report released by the International Renewable Energy Agency on Tuesday showed that solar, wind, and other renewable sources were cheaper than fossil fuels. This shows the competitiveness of these sources.

Why it is important

To reduce greenhouse gas emissions, and to meet climate change goals, countries are trying to reduce their reliance on fossil energy sources such as coal and natural gas.

The U.N. Climate Meeting last year set the goal to triple renewable energy capacity globally by 2030. The goal would be to increase installed renewable energy capacities to at least 11,090 gigawatts by the end this decade. This compares to 4,209 gigawatts in 2023.

By the Numbers

The report shows that the new renewable power capacity reached a record 473 gigawatts last year. Of this, 382 GW, or 81%, of newly-commissioned utility-scale projects, had lower costs than alternatives using fossil fuels.

It added that this was despite the fact that fossil fuel prices returned to levels close to historical costs following the energy crises of 2022.

CONTEXT

The report stated that in 2023 the average global cost of electricity generated by newly-commissioned renewables across all technologies will be lower than the previous year. This includes solar PV, onshore wind, offshore wind, concentrating solar power, and hydropower.

KEY QUOTE

Renewable energy is still competitively priced compared to fossil fuels. Renewables have accelerated due to the virtuous circle of long-term policies. Growth has in turn led to technological improvements and cost reductions. "Prices for renewables no longer excuses, but rather the opposite," Francesco La Camera, director general of IRENA. Reporting by Nina Chestney, Editing by Kirby Donovan

(source: Reuters)