Renewable energy is 81% cheaper than fossil fuels, according to a report.
According to a recent report from the International Renewable Energy Agency (International Renewable Energy Agency). IRENA), the power gained last year with renewable energies represents 473 gigawattswhich prove to be economically more competitive than fossil fuels. A little against the tide of public opinion, let’s see together what is hidden behind such an announcement.
Read also:
Impressive growth in renewable energies
Last year, the world added the equivalent of 473 nuclear power plants in terms of renewable energy, making it possible to produce electricity at a cost that fossil fuel plants struggle to compete with. This additional capacity illustrates a significant step forward towards a more sustainable energy transition and above all, that the era is one of changing mentalities in relation to our approaches to these new forms of energy.
A decisive milestone for nuclear fusion has just been reached in the south of France with the first sector of the ITER vacuum chamber
Cost reduction and increased competitiveness
The global average cost of electricity generated from onshore wind power fell to 3.3 euro cents per kilowatt-hour, down 3% from the previous year, and that of the Large-scale solar photovoltaic power fell to 4.4 cents/kWh, decreasing by 12%. These costs become significantly lower than those of fossil fuels, which increased to 10 cents/kWh in 2023.
The economic benefits of the energy transition
The savings from increased use of renewable energy are starting to become significant. IRENA estimates that electricity companies and their customers saved €409 billion in fuel costs from 2000 to 2023 thanks to renewable energy, highlighting the positive economic impact of this transition.
The key role of energy storage
For renewable energies to be competitive with fossil and nuclear energies, storage plays an essential role. It makes it possible to provide electricity during periods of unavailability of renewable sources. The report also highlights advances in battery storage, with added capacity increasing from 0.1 GWh in 2010 to 95.9 GWh in 2023, an increase by almost 1000 in 22 years!
The preponderance of China in the Sector
China continues to dominate the global renewable energy market, accounting for the largest share of new capacity additions in solar PV, onshore and offshore wind, and hydro in 2023. This dominance is a key driver in reducing global average costs of these technologies. Some countries like the United Kingdom are also starting to specialize in certain areas such as Offshore wind turbines in this specific case.
New technologies to support this growth
As the world moves towards a continued increase in renewable energy capacity, innovative technologies are also being developed to facilitate this transition, promising more effective decarbonization of the global energy system.
The United Kingdom still takes a considerable lead over France in this energy sector with the world record for the largest tidal turbine
This article explores the global energy transition marked by massive adoption of renewable energies, which are now 81% more economical than fossil fuels. This shift comes with a significant drop in costs and a favorable economic impact, with continued innovations that promise to reshape the global energy future.
Source : IRENA
Visual created with Canva for representation purposes.
