A recent report by the International Renewable Energy Agency (IRENA) emphasizes that after years of declining costs and technological advancements, particularly in solar and wind energy, renewable energy’s socio-economic and environmental benefits have become increasingly compelling.

The Renewable Power Generation Costs in 2023 report revealed that a record 473 gigawatts (GW) of renewable capacity was added in 2023, with 81% (382 GW) of newly commissioned utility-scale projects costing less than fossil fuel-based alternatives.

More specifically, the cost of solar photovoltaic (PV) energy has significantly decreased to approximately four US cents per kilowatt-hour in just a year, making it 56% more cost-efficient than fossil fuels and nuclear energy.

Since 2000, the global adoption of renewable power has resulted in savings of up to $409 billion in fuel costs within the power sector.

IRENA’s Director-General, Francesco La Camera, emphasized that renewable energy continues to be cost-competitive compared to fossil fuels, crediting long-term support policies for driving technological advancements and cost reductions in the sector.

Francesco La Camera stressed the critical role of low-cost renewables, calling them essential for boosting ambitions and achieving the goal of tripling renewable power capacity by 2030, as laid out in IRENA’s roadmap and affirmed by the UAE Consensus at COP28.

He also pointed out that solar PV and onshore wind will be the main drivers of this growth in the coming years. La Camera emphasized that policymakers now have a timely solution to reduce dependency on fossil fuels, mitigate the economic and social impacts of carbon-intensive energy, foster economic development, and enhance energy security.

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