In a striking milestone for the global energy transition, the International Renewable Energy Agency (IRENA) has reported that 91% of all new renewable electricity projects commissioned in 2024 generated power at a lower cost than fossil fuel alternatives. This news represents not just a win for climate goals, but also a decisive economic shift in favor of clean energy.
A Tipping Point in Energy Economics
According to IRENA’s latest analysis, renewable technologies like solar PV, onshore wind, hydropower, and bioenergy are now consistently undercutting the cost of electricity from coal, gas, and oil-fired plants. Specifically, solar PV was 41% cheaper and onshore wind 53% cheaper than the most affordable new fossil fuel-fired generation in 2024.
This isn’t just about long-term sustainability anymore—it’s about bottom-line advantage. The narrative that renewables are expensive and require subsidies is officially outdated.
Why It Matters
The implications of this shift are profound:
- Cost Efficiency: Renewables are now the most economically sensible choice for new power generation. With levelized costs continuing to fall, especially in emerging economies, clean energy investments are more attractive than ever.
- Energy Access: Lower costs create opportunities for developing countries to scale access to electricity with clean, decentralized solutions.
- Climate and Resilience: Renewable investments offer resilience against fuel price volatility while delivering enormous emissions reductions. In 2024 alone, newly added projects helped offset around 550 million tonnes of CO₂—comparable to the annual emissions of major industrial economies.
A Global Push Still Needed
Despite this encouraging momentum, IRENA warns that fossil fuel subsidies remain high in many regions, distorting markets and slowing the transition. The gap between what is technically possible and what is politically or financially prioritized continues to pose challenges.
In particular, clean energy financing needs to scale much faster in low- and middle-income countries, where high capital costs still hinder renewable deployment, despite favorable natural resources.
What’s Next?
To accelerate the transition and harness these economic advantages, stakeholders across sectors must:
- Reform policies and subsidies to level the playing field for clean energy.
- Expand access to low-cost capital, especially in underserved regions.
- Invest in grid infrastructure and storage to support variable renewable generation.
As the data shows, the energy future is no longer a gamble—it’s a value-driven decision. Renewables are now the default economic choice, not just the ethical or environmental one.
Final Thoughts
The message is clear: the world has reached a point where renewable energy isn’t just competitive—it’s dominant. For businesses, governments, and investors, the imperative is now to act quickly, decisively, and collaboratively to capitalize on this momentum.
Find the full article here: https://www.irena.org/News/pressreleases/2025/Jul/91-Percent-of-New-Renewable-Projects-Now-Cheaper-Than-Fossil-Fuels-Alternatives