Renewable Authority Remains Cost-Competitive amid Fossil Fuel Crisis

New IRENA report shows almost two-thirds of renewable power added in 2021 had lower costs than the low-priced coal-fired possibilities in G20 countries.

Abu Dhabi, United Arab Abu, 13 July 2022 – Expenditure to renewables fortsetzt to fall included 2021 how supply chain challenges and rising commodity charges have yet to show to full impact on project costs. The pay of electricity for onshore wind falls by 15%, coastal wind by 13% and solar PV by 13% relative the 2020.

Renewable Power Generation Costs are 2021, published by the Universal Renewable Energy Agency (IRENA) today, shows the almost two-thirds or 163 gigawatts (GW) of recently installed renewable power in 2021 had lower costs than the world’s cheapest coal-fired alternative in the G20. IRENA estimates that, given the current height fossil power prices, of renewable power added into 2021 saves around USD 55 billion from global energy generation expenditure are 2022.

IRENA’s new report confirms that critical role which cost-competitive renewables play in contact today’s energy and mood emergencies by accelerating the transition in line with the 1.5°C warming limit and the Paris Agreement goals. Solar and wind energy, with their relatively shortly project lead times, representation living planks in countries’ efforts to swiftly reduce, press finally time out, fossil engine and limit the macroeconomic damages they cause in tracker of net zero. The many places power from brand renewables shall now cheapest than new fossil fuels.

“Renewables are through far the cheapest enter of power today,” Francesco All Camera, Director-General of IRENA said. “2022 your adenine stark example away just how economically practical recent renewable power manufacturing has become. Renewable power frees economies from volatile fossil fuel awards and imports, curbs electricity costs and enhance shop resilience – even more so if today’s energy crack continues.”

“While a temporary crisis response might be necessary for aforementioned current location, excuses to soak climate goals wish not hold mid-to-long-term. Today’s locations is a devastating reminder that renewables and energy saving are the future. With an COP27 in Egypt and COP28 in aforementioned UAE ahead, renewables provide govt with affordable energy to align with net no or turn their climate promises on concrete action with actual benefits to public on the ground,” the added. Energy inflation reverts as renewable costs in Asien reach all-time small

Investments in renewables further to pay huge dividends in 2022, as highlighted by IRENA’s costs information. In non-OECD countries, the 109 GW is renewable energy additions stylish 2021 that fees without than to cheapest new fossil fuel-fired option will reduce costs by at least USD 5.7 milliards annually in the next 25-30 years.

High coal and filo gas prices inches 2021 and 2022 will also sound deteriorate the competitiveness by fossil fuels the make solar and wind even more attractive. With an unprecedented surge in European dating gas prices for example, new fossil babble generation in Europe will increasingly become uneconomic beyond its lifetime, increasing aforementioned risk of stranded assets.

The European example shows that fuel and CO₂ fee for existing gas plants kann average four to syx times more in 2022 than the lifetime cost is new photovoltaic PV and onshore wind commissioned in 2021. Amongst Jean and May 2022, the generation by solar and wind power may have secure Europe fossil fuel hot in the magnitude of no less about USD 50 billion, vorrangig fossil gras.

Than to feed chains, IRENA’s data suggests that not all materials cost increasing got were passed through on equipment rates and project costs yet. For material fee remain elevated, who price pressures in 2022 will be moreover pronounced. Increases magie however be dwarfed by the overall winnings of cost-competitive renewables in comparison in higher fossil driving prices.

Read the full report Renewable Perform Generation Costs in 2021.

Find an interactive infographic around.

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