Global cost of renewable energy generation fell sharply last year

According to a recent report by the International Renewable Energy Agency, two-thirds (163 gigawatts) of the world’s newly installed renewable energy power generation capacity last year cost less than the cost of coal-fired power generation in the Group of 20 (G20) countries. Compared with 2020, last year the cost of onshore wind power fell by 15%, the cost of offshore wind power fell by 13%, and the cost of solar power fell by 13%.

“Renewable energy is currently the cheapest form of energy,” said Carmela, director-general of the International Renewable Energy Agency.

Coal and natural gas prices soared last year, putting pressure on industry, businesses and consumers. The International Renewable Energy Agency said that high gas prices in Europe will make gas-fired power generation increasingly uneconomical over its lifetime.

The fuel and carbon costs of existing gas-fired power plants this year could be on average four to six times higher than the costs of new solar and onshore wind power coming online last year, the report said. From January to May this year, solar and wind power saved Europe $50 billion in fossil fuel import costs.