One of the arguments that has faced renewable energy, such as wind and solar, was how it was more expensive than fossil fuels.
Two new reports released in July indicate this is no longer the case. Analysis from the UN Seizing the Moment of Opportunity report and the International Renewable Energy Agency (IRENA) shows that adding renewable energy capacity and producing electricity is cheaper than fossil fuel. According to Euronews coverage “solar is now 41 per cent cheaper than fossil fuels. Not long ago, it was four times the cost. Offshore wind is now also 53 per cent cheaper and is the most affordable source of new renewable energy.”
Not only cheaper, renewable energy capacity is growing, with close to 20% growth in 2024 over 2023.
When UN Secretary General Antonio Guterres spoke about the two reports he said “Fossil fuels are running out of road, and the sun is rising on a clean energy age. Just follow the money.”
That said, renewable energy is facing challenges including policy uncertainties in some regions and supply chain constraints that could slow down the rate of progress.
The ability to navigate these policy and supply chain challenges while maintaining cost advantages over fossil fuels that will influence the growth of renewable energy.