Two-Thirds of Renewable Power Cheaper Than Fossil Fuels

A new report by IRENA, an intergovernmental renewable energy organisation, has shown that almost two-thirds of renewable power capacity added last year had lower costs than the cheapest fossil fuel options in G20 countries. The cost of onshore wind fell by 15%, offshore wind by 13% and solar photovoltaics by 13%, according to IRENA’s Renewable Power Generation Costs in 2021 report, which showed 163 GW of newly installed renewable power in 2021 was cheaper than the least expensive fossil fuel option. The report estimates than the new renewable power added will save up to US$55 billion in global energy generation costs in 2022. IRENA’s costs data highlights that in non-OECD countries the 109 GW in additional renewable energy will reduce costs annually by at least US$5.7 billion for the next 25-30 years. Francesco La Camera, Director-General of IRENA said. “Renewable power frees economies from volatile fossil fuel prices and imports, curbs energy costs and enhances market resilience – even more so if today’s energy crunch continues”. However, a report by LevelTen, a renewable transaction infrastructure provider, has claimed European P25 solar and wind PPA prices increased 16% in Q2 2022 to EUR 66.07 per MWh, a leap of 47% compared to last year, as demand outpaced supply.  

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