Renewable Power Surpasses Fossil Fuels in Cost Competitiveness Amidst Global Price Crisis

International Renewable Energy Agency (IRENA) Report Highlights Renewable Energy’s Dominance in Reducing Costs and Emissions

The fossil fuel price crisis has accelerated the competitiveness of renewable power. In 2022, 86% of newly commissioned renewable capacity had lower costs than fossil fuel-fired electricity.

According to the International Renewable Energy Agency (IRENA), this shift reduced the electricity sector’s fuel bill by USD 520 billion globally, with non-OECD countries saving up to USD 580 billion. Besides cost savings, renewables also contribute to reducing CO2 emissions and air pollutants.

IRENA emphasizes the importance of renewables in addressing energy and climate crises, aiding the transition to a 1.5°C warming limit. Despite cost inflation, renewables’ cost-competitiveness remains strong. However, to meet climate goals, the world must significantly increase renewable power capacity.