RIYADH: The cost of renewable power generation in 2021 was less than the cheapest coal-fired option within the Group of 20 major and emerging economies, as the world continues its journey toward a sustainable future, according to an International Renewable Energy Agency report.
The report, Renewable Power Generation Costs in 2021, suggested that the cost of electricity from onshore wind and offshore wind fell by 15 percent and 13 percent respectively in 2021.
The report added that the expense of electricity generation using photovoltaics was also reduced by 13 percent last year.
“Renewables represent a vital pillar in the global effort to reduce and ultimately phase out fossil fuels, increasing national resilience in the face of fossil fuel price volatility,” said Francesco La Camera, director general of IRENA.
He added, “High coal and fossil gas prices in 2021 and 2022 have further undermined the competitiveness of fossil fuels, making solar and wind even more attractive.”
Considering the current price of fossil fuels, the 163 gigawatts of renewable power added last year could save $55 billion globally from energy generation costs in 2022, the report noted.
IRENA also added that high fossil fuel and gas prices will make traditional power generation uneconomic in the future.
"Between January and May 2022 in Europe, solar and wind generation, alone, avoided fossil fuel imports of at least $50 billion," the authors said in the report.
