In Short : According to a recent IRENA research, 91% of utility-scale renewable projects that were put into service in 2024 were more cost-effective than the cheapest new fossil fuel alternatives. With average prices that were 53% and 41% cheaper than those of fossil fuel-based electricity, onshore wind and solar PV led the way.
Using Renewables to Drive Smart Economics
Rapid technology advancement, effective supply chains, and scale-driven cost reductions are the main drivers of this cost advantage. 582 GW of new renewable capacity was added in 2024, saving around $57 billion in fossil fuel costs and enhancing renewables’ increasing competitive advantage over coal, oil, and gas production.
Maintaining Renewable Energy Despite Obstacles
Notwithstanding the strong competitive advantage, IRENA identified new obstacles, particularly in developing nations, including financial complexities, permission delays, and grid integration bottlenecks. It emphasized the necessity of strong grid infrastructure, better finance options including power purchase agreements (PPAs), and stable policy frameworks in order to maintain pace.
Impact and Significance of Clean Energy
The results highlight a significant change: clean energy is now both more cost-effective and environmentally required. Now that renewables are at the top of the cost curve, economic logic supports the urgency of addressing climate change. A quicker, more intelligent worldwide shift to reasonably priced, safe, and robust electricity systems may result from this.
