64% of new renewables energy cost less than the cheapest fossil fuels
The cost of renewable energy drop lower and lower,especially solar photovoltaic energy.It is a good time to invest in solar power plant.
According to a new report released by the International Renewable Energy Agency (Irena), the share of renewable energy that costs less than the most competitive fossil fuel energy will double in 2020. Of the total renewable power generation added last year, 162 gigawatts (GW) - 62% - cost less than the cheaper new fossil fuel option.
According to the report on the cost of renewable energy power generation in 2020, the cost of renewable energy technology continues to drop significantly year on year. The cost of concentrated solar energy (ESC) is reduced by 16%; Onshore wind power accounts for 13%, offshore wind power 9%, and solar photovoltaic (PV) 7%. The cost of renewable energy is also lower than the current operating cost of coal.
Low cost renewable energy provides a strong economic reason for developed and developing countries to stop using coal in pursuit of net zero emission economy. The new renewable energy projects in 2020 alone will save up to US $156 billion for emerging economies in their service life.
"Today, renewable energy is the cheapest energy," said Francesco La camera, Irena's chief executive“ Renewable energy provides an attractive plan for coal related countries to phase out coal economically to meet growing energy demand while saving costs, creating jobs, driving growth and achieving their climate goals. More and more countries choose to use renewable energy to promote economic development and follow Irena's path to achieve zero net emissions by 2050, which makes me optimistic. "
"We're far behind the coal tipping point," La camera continued“ With the G7's latest commitment to reduce net emissions to zero and end global international financing for coal, it is now up to the G20 and emerging economies to adapt to these measures. We cannot allow a two-way energy transition in which some countries quickly turn green while others are still stuck with fossil fuel based systems in the past. From technology diffusion to financial strategy and investment support, global solidarity will be decisive. We have to make sure that everyone benefits from the energy transition. "
New renewable energy projects last year will reduce electricity sector costs in emerging countries by at least $6 billion a year, compared with the same amount of fossil fuel power generation. Two thirds of these savings will come from onshore wind, followed by hydropower and solar photovoltaic.
Cost saving complements economic benefits and reduces carbon emissions. Since 2010, the newly added 534 gigawatts of renewable energy installed capacity in emerging countries is lower than the cheapest coal power generation option, which can reduce the electricity cost by about US $32 billion per year.
From 2010 to 2020, the competitiveness of solar energy and wind energy technologies will be significantly improved. ESC, offshore wind energy and solar photovoltaic will add onshore wind energy to the new fossil fuel capacity cost. Over the past decade, the cost of solar photovoltaic power generation of public utility scale has decreased by 85%, ESC by 68%, onshore wind power cost by 56%, and wind power terminal cost by 48%. With the current auction price at an all-time low of 1.1-3 cents per kilowatt hour, the cost of solar photovoltaic and onshore wind power is always lower than the cheapest new coal power scheme without financial assistance.
Irena report also shows that the new renewable energy is superior to the existing coal-fired power plants in terms of operating costs, making the profit of coal-fired power generation lower and lower. In the United States, for example, 149 gigawatts (61%) of total coal based capacity costs more than the same amount of new renewable energy based capacity. Phasing out these plants and replacing them with renewable energy would reduce US $5.6 billion in annual spending and 332 million tons of carbon dioxide, thereby reducing US coal emissions by a third. In India, 141 gigawatts of coal capacity is more expensive than new renewable energy capacity. In Germany,
Globally, the cost of existing 800 GW of coal-fired power is higher than that of new solar photovoltaic or onshore wind power projects launched in 2021. The abolition of these power plants will reduce the cost of power generation by as much as US $32.3 billion per year, and avoid about 300 million tons of carbon dioxide emissions per year, that is, 9% of global energy related carbon dioxide emissions in 2020 or 1.5% of Irena's "world energy transition outlook" Report º C 20% of the emission reduction required by climate path from now to 2030
The outlook for 2022 predicts that the cost of renewable energy worldwide will continue to decline, with the cost of onshore wind power 20% to 27% lower than that of new generation schemes based on cheaper coal. Among all solar photovoltaic projects launched in the past two years and competitively contracted through auction and bidding, 74% of the price will be lower than that of the new generation of coal power generation projects.
This trend confirms that in addition to being the cornerstone of the power system, low-cost renewable energy will also realize the electrification of end use such as transportation, construction and industry, and will realize competitive indirect electrification through renewable hydrogen.
