In 2022, with the implementation of renewable energies, the global energy sector saved costs of 520 thousand dollars in fossil fuel, concludes the report published by IRENA (International Renewable Energy Agency).
According to the IRENA report, if the implementation of renewable energy had not been implemented last year, the cost of fossil fuels would have been much worse, and possibly beyond the ability of many governments to mitigate with public financing.
The document also pointed out that, in the last 15 years, the costs of generating renewable energy from solar and wind energy have decreased.
Inflation in the costs of goods and equipment in 2022 has resulted in countries experiencing different market trends in costs in 2022, the new IRENA report concludes.
However, globally, the weighted average cost of electricity fell by 3% for utility scale solar, 5% for onshore wind, 2% for concentrated solar, 13% for bioenergy and 13% for bioenergy. . for geothermal by 22 percent.
“IRENA sees 2022 as a real turning point in the deployment of renewable energies, as its cost competitiveness has never been greater, despite the persistent inflation of the costs of goods and equipment around the world”, highlighted Francesco La Camera, the General Director of IRENA.
According to the director of IRENA, the business case for renewable energy is currently compelling.
“There is no time for a new energy system to evolve gradually as was the case with fossil fuels. In preparation for COP28 (UN conference on climate change) in Dubai later this year, the report shows once again that, with renewable energy, countries have at hand the best climate solution to increase ambition and take measures in a cost-competitive manner”, he stated.
For the Agency, the implementation of renewable energy can protect consumers from increases in fossil fuel prices, avoid physical shortages of supply and increase energy security.
“The IRENA report concludes that the expected rise in fossil fuel prices will consolidate the structural change that has seen renewable energy generation become the lowest-cost source of new generation, even surpassing existing fossil fuel generators,” stated the Agency.
