IRENA: most renewables now cheaper than fossil fuel power

The cost of clean energy generation is falling and in many cases can now compete with fossil fuels, creating a “historic opportunity” to build sustainable energy systems and avert dangerous climate change, according to the International Renewable Energy Agency (IRENA).

A report from Abu Dhabi based IRENA concludes that biomass, hydropower, biothermal and onshore wind power sources are now competitive with or cheaper than coal, oil and gas fuelled power plants stations.

The solar power sector has seen the biggest drop in price, with module costs falling 75 per cent since the end of 2009.

Adnan Amin, Director-General of IRENA, said: “Renewable energy projects across the globe are now matching or outperforming fossil fuels, particularly when accounting for externalities like local pollution, environmental damage and ill health. The game has changed; the plummeting price of renewables is creating a historic opportunity to build clean, sustainable energy systems and avert catastrophic climate change in an affordable way.”

A record 120 gigawatts of renewable energy was added to the global energy mix in 2013, with a similar figure due to be released imminently for 2014.

Renewable sources accounted for 22 per cent of global electricity generation in 2013 and renewables are the best value source of energy for the 1.3 billion people globally without electricity, according to IRENA.

Amin said: “Now is the time for a step-change in deployment for renewables. It has never been cheaper to avoid dangerous climate change, create jobs, reduce fuel import bills and future-proof our energy systems. This requires public acknowledgement of the low price of renewables, an end to subsidies for fossil fuels, and regulations and infrastructure to support the global energy transition.”