Renewable energy costs remain competitive despite fossil fuel prices returning closer to historical levels, according to a new report by the International Renewable Energy Agency (IRENA) on Tuesday.
The report titled Renewable Power Generation Costs in 2023, was released by IRENA at the Global Renewables Summit during the UN General Assembly in New York, the agency said in a statement.
'Of the record 473 gigawatts (GW) added in 2023, 81% or 382 GW, of newly commissioned, utility-scale renewable projects had lower costs than their fossil fuel-fired alternatives,' it noted.
After decades of declining costs and improving technology, particularly for solar and wind, the socio-economic and environmental benefits of renewable energy deployment are now uniquely compelling, the report revealed.
'With a spectacular decline in costs to around four US cents per kilowatt hour in just one year, solar PV's global costs in 2023 were 56% lower than fossil fuel and nuclear options,' the report said.
Overall, the renewable power deployed globally since 2000 has saved up to $409 billion in fuel costs in the power sector.
- 'Solar, onshore wind to have biggest impacts on tripling of renewables'
Renewables remain cost-competitive vis-à-vis fossil fuels, Francesco La Camera, IRENA's director-general said.
'In the coming years, remarkable growth across all renewable energy sources is expected, giving countries great economic opportunities,' La Camera added.
Solar PV and onshore wind is expected to have the biggest impacts on the tripling of renewables, he said.
'Thanks to low-cost renewables in the global market, policy makers have an immediate solution at hand to reduce fossil fuels dependency, limit the economic and social damage of carbon-intensive energy use, drive economic development and harness energy security benefits,' he added.
To triple renewable energy capacity by 2030, there is a need to add an average of 1,044 gigawatts annually, with solar and wind accounting for most of the growth, according to IRENA's World Energy Transition Outlook.
By Handan Kazanci
energy@aa.com.tr
Anadolu Agency