Record renewables growth fuels cost competitiveness -IRENA report shows

By Nina Chestney

LONDON (Reuters) - Over three-quarters of new renewable energy capacity added last year was cheaper than fossil fuels, showing the competitiveness of solar, wind and other sources, a report by the International Renewable Energy Agency (IRENA) showed on Tuesday.

WHY IT IS IMPORTANT

Countries are trying to reduce reliance on fossil fuels such as oil, natural gas and coal to cut greenhouse gas emissions and meet climate change targets.

Last year's U.N. climate meeting set a goal of tripling renewable energy capacity worldwide by 2030. The target would involve increasing installed renewable energy capacity to at least 11,000 gigawatts (GW) by the end of this decade, compared to 4,209 GW in 2023.

BY THE NUMBERS

New renewable power capacity last year reached a record of 473 gigawatts (GW), of which 382 GW or 81% of newly-commissioned, utility-scale renewables projects had lower costs than fossil fuel alternatives, the report showed.

This was despite fossil fuel prices returning to near historical cost levels following the energy crisis of 2022, it added.

CONTEXT

In 2023, the global weighted average cost of electricity from newly-commissioned renewables projects across most technologies fell from the year before: for solar PV by 12%, for onshore wind by 3%, for offshore wind by 7%, for concentrating solar power (CSP) by 4% and for hydropower by 7%, the report said.

KEY QUOTE

"Renewable power remains cost-competitive vis-à-vis fossil fuels. The virtuous cycle of long-term support policies has accelerated renewables. In return, growth has led to technology improvements and cost reductions. Prices for renewables are no excuse anymore, on the contrary," said IRENA’s director general Francesco La Camera.

(Reporting by Nina Chestney; Editing by Kirsten Donovan)