"Erina": 91% of new renewable energy projects are less expensive than fossil fuels

Abu Dhabi, July 22/ WAM/ The report, “The Costs of Renewable Energy Generation for 2024” issued by the International Renewable Energy Agency (IRina “, confirmed that renewable energy sources are still maintaining their competitiveness in the global energy markets, supported by the development of technologies, increasing the competitiveness of supply chains, and achieving savings.

The report pointed out that the addition of 258 GW of the productive capacity of renewable energy during the year 2024 contributed to achieving significant financial savings, which enabled to avoid the use of fossil fuel worth about 57 billion US dollars, indicating that 91% of renewable energy projects that entered into operation during the past year were less expensive than any new fossil fuel project.

The report pointed out that the average cost of solar photovoltaic energy cost in 2024 was 41% less compared to the cheapest fossil fuel alternatives, while wild wind energy projects recorded a 53% decrease, and the wild winds remained the lowest cost energy source for electricity production, by 0.034 USD per kilowatt hour, followed by solar energy with a value 0.043 dollars per kilowatt hour.

Renewable energy costs are likely to remain high in Europe and North America, as a result of structural obstacles represented in the delay in issuing licenses, weak network capacity, and high costs of power of energy systems components.

On the other hand, areas such as Asia, Africa and South America may witness a noticeable decrease in costs, thanks to high technological learning rates and the possession of abundant resources of renewable energy.

Antonio Guterres, the Secretary -General of the United Nations, stressed that clean energy is a smart investment in light of the world’s tendency towards the glory economic opportunities, pointing out that renewable energy is witnessing rapid growth, while the era of fossil fuels decline.

He pointed out that the success of this transformation requires leaders to remove obstacles, build confidence, and provide financing and investment, explaining that renewable energy paves the way for a future in which electricity is available at an affordable cost, abundance and security in supply to all.

For his part, Francesco La Camera, Director General of the International Renewable Energy Agency (IRENA) said that when looking at all renewable energy projects currently operating, we find that the cost of fossil fuels that were avoided in 2024 amounted The cost of electricity. ”

He pointed out that this achievement is a fruit of years of innovation, policy guidance, and marketing, explaining that protecting the gains achieved in the path of transformation of the energy sector requires greater international cooperation, in addition to securing flexible and easy -to -reach supply chains, and setting stable investment policies and strategies, especially in the global south countries.

The new “Irina” report reviewed; The structural factors that affect the cost and market conditions that direct renewable energy investments, stressing the importance of the frameworks that guarantee stable revenues and can be expected to reduce the risk of investment and attract capital.

The report pointed out that reducing the financing risks is a crucial factor in accelerating the adoption of renewable energy sources in mature and emerging markets alike, and energy purchase agreements play a pivotal role in securing financing at reasonable prices, while unstable policies and the absence of transparency in purchases are undermined investor confidence.

The costs of connecting renewable energy projects to the electricity network are increasingly emerged as one of the main obstacles to their spread, as wind and solar energy projects are facing more delays as a result of the obstacles to the network, the delay in issuing licenses, and the high costs of local supply chains, and these challenges appear more clearly in the G20 countries and emerging markets, where the volume of investment in the infrastructure must be promoted For networks to the level of accelerated growth in the demand for electricity and the continuous expansion of renewable energy sources.

The costs of financing also remain one of the most prominent factors that determine the feasibility of renewable energy projects, especially in developing countries within the global south, where high capital costs are caused by unstable economic conditions, and high investment risks lead to a significant increase in the flat cost of electricity generated by renewable energy sources.

Technological developments that exceed the energy generation stage contribute to enhancing the economic feasibility of renewable energy sources. The cost of power storage systems (BESS) has decreased by 93% since 2010, to reach 192 USD per kilowatt hour in 2024 for systems at the level of facilities, and this significant decrease is due to the expansion of manufacturing, improvement of materials, and the development of production technologies.

The importance of batteries storage systems, hybrid systems that combine solar energy and wind energy and batteries storage systems, along with digital solutions, are increasing in facilitating the integration of various renewable energy sources into electrical networks, and artificial intelligence -enhanced tools also contribute to improving asset performance and network response efficiency.

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