OVERALLY: There has been a persistent misconception that renewable energy sources are prohibitively expensive compared to traditional fossil fuels. However, this claim is not only outdated but also contradicted by a wealth of evidence.
Renewable energy serves as an important player in addressing pressing environmental concerns and energy security challenges. As nations grapple with the urgent need to reduce carbon emissions and transition towards cleaner energy sources, the relevance of renewables is becoming more noticeable because the generation of renewable energy creates far lower and, in some cases, zero emissions than burning fossil fuels.
But there are false claims and rumors concerning the viability and efficiency of renewable energy,one of which is it’s cost. This article is aimed at debunking this common myth
Verification:
The report on renewable power generation costs in 2021, published by the International Renewable Energy Agency (IRENA), shows that almost two-thirds of 163 gigawatts (GW) of newly installed renewable power in 2021 had lower costs than the world’s cheapest coal-fired option in the G20. IRENA estimates that, given the current high fossil fuel prices, the renewable power added in 2021 will save around USD 55 billion from global energy generation costs in 2022.
“Renewables are by far the cheapest form of power today,” Francesco La Camera,Director-General of IRENA, said.
In a report by IRENA, it is also stated that, for the last 13 to 15 years, renewable power generation costs from solar and wind power have been falling. While the initial cost of installing solar is relatively high, with higher production and a drop in equipment prices, this initial cost of purchase will continue to decline. Between 2010 and 2022, solar and wind power became cost-competitive with fossil fuels even without financial support.
The global weighted average cost of electricity from solar PV fell by 89 percent to USD 0.049/kWh, almost one-third less than the cheapest fossil fuel globally. For onshore wind, the fall was 69 percent to USD 0.033/kWh in 2022, slightly less than half that of the cheapest fossil fuel-fired option in 2022.
Most people think transitioning to renewable energy sources will be more costly in the long run. However, research and studies show that switching to renewables will save millions. The initial switch to green energy might cost some extra bucks, but the payback is significantly cheaper.
While there may be a lack of access to public funds and finance in developing countries for the transition of renewable energy, the Director General of IRENA, Francesco La Camera, stated in an interview with LIDA Network at the 14th IRENA Assembly that IRENA, in partnership with Germany, the United States, and her other partners, would support the Accelerated Partnership for Renewable Energy in Africa (APRA) in driving renewable energy transition as a strategic energy solution to energy access, security, and green growth on the African continent. Read more Here
In conclusion, the notion that renewable energy is too expensive is unequivocally false. The evidence provided by IRENA, as highlighted above, proves that renewables are not only economically competitive but often cheaper than traditional fossil fuel options. With costs steadily declining and substantial savings forecasted, transitioning to renewable energy emerges not only as a sustainable solution but also as a financially prudent decision. Embracing renewables is not just an environmental imperative but a smart economic choice for a greener, more prosperous future.
About IRENA
The International Renewable Energy Agency (IRENA) is a leading global intergovernmental agency for energy transformation that serves as the principal platform for international cooperation, supports countries in their energy transitions, and provides state-of-the art data and analyses on technology, innovation, policy, finance, and investment. IRENA drives the widespread adoption and sustainable use of all forms of renewable energy, including bioenergy, geothermal, hydropower, ocean, solar, and wind energy, in the pursuit of sustainable development, energy access, and energy security, for economic and social resilience, prosperity, and a climate-proof future.
