Em 2023, solar energy was 56% cheaper than fossil fuels, according to the IRENA (International Renewable Energy Agency). According to the agency, the costs were reduced for about four cents per kWh.
Overall, the renewable energy deployed globally since 2000 has saved up to US$409 billion in fuel costs in the energy sector.
According to the report, 2023 saw a record 473 GW of renewable projects installed on a utility scale.
Of these new projects, 81% had lower costss than the projects that use fossil fuels, such as oil and coal.
In 2023 the average cost weighted global electricity of new commissioned renewable projects in most technologies fell.
The reduction was 12 % all with solar energy photovoltaic, 3% for energy wind earthly, 7% for energy offshore wind, 4% for energy concentrated solar or thermosolar and 7% for energy hydroelectric.
"In savings not belonging to OECD (Organization for Economic Cooperation and Development), where the demand for electricity is crescendo and new capacity is needed, renewable energy generation projects with lower costs than fossil fuel equivalents for their country and region will significantly reduce electricity system costs over the lifetime of their operation,” the report says.
“A renewable energy teacher competitive in terms of cost in relation to fossil fuels. The virtuous cycle of long-term supportive policies has accelerated renewable energy. In return, the growth has led to technological improvements and cost reductions”, commented Francesco La Camera, Director General of IRENA.
"The prices the renewable energy are no longer excuses, on the contrary. The record growth of renewable energy in 2023 exemplifies this. Renewable energy in low cost represent a fundamental incentive to significantly increase ambition and triple the energy capacity renewable by 2030, as modeled by IRENA and defined by the UAE Consensus at COP28,” he added.
Renewable Target by 2030
IRENA estimates that, for triple renewable energy by 2030, global capacity should reach 11,2 TW. This requires adding an average of 1.044 GW per year with 8,5 TW from energy solar photovoltaic and wind.
According to the report, the goal of tripling renewable energy must be accompanied by key enablers of the energy transition, such as the energy storage in batteries.
Still according to the study, between 2010 and 2023, the storage project costs dropped 89%, which facilitated the integration of large volumes of solar and wind energy, helping to address grid infrastructure challenges.
“In the coming years, a remarkable growth in all sources of renewable energy, giving large countries economic opportunities. Our analysis indicates that solar PV and offshore wind will have the biggest impacts on the tripling of renewables,” La Camera commented.
“Thanks to the low-cost renewable energy in the global market, policy makers have a immediate solution in hand to reduce dependence on fossil fuels, limit economic damage and social aspects of carbon-intensive energy use, drive economic development and harness the benefits da energy security”, completed La Camera.
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