IRENA says over 90 per cent of renewables cheaper than fossil fuels

• 2 months ago (2025-07-23)
• David Flin

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The International Renewable Energy Agency (IRENA) has released a report entitled Renewable Power Generation Costs in 2024 that states that renewables have maintained their price advantage over fossil fuels, with 91 per cent of new clean energy projects now being cheaper than fossil fuel alternatives.

It said that cost declines in renewables driven by technological innovation, competitive supply chains, and economies of scale.

IRENA found that in 2024. solar PV was, on average, 41 per cent cheaper than the lowest-cost fossil fuel alternatives, while onshore wind projects were 53 per cent cheaper. The report found that onshore wind was generally the most affordable source of new renewable electricity, followed by solar PV.

The addition of 582 GW of renewable capacity in 2024 led to significant cost savings estimated at $57 billion.

The report said that higher costs are likely to persist in Europe and North America, driven by structural challenges such as permitting delays, limited grid capacity, and higher balance-of-system expenses. In contrast, regions such as Asia, Africa, and South America, with stronger learning rates and high renewable potential, could see pronounced cost declines.