UAE Business: Renewable power cost-competitive amid fossil fuel crisis, says report – Gulf Digital News

UAE Business: Renewable power cost-competitive amid fossil fuel crisis, says report – Gulf Digital News

Costs for renewables continued to fall in 2021 as supply chain challenges and rising commodity prices have yet to show their full impact on project costs. The cost of electricity from onshore wind fell by 15%, offshore wind by 13% and solar PV by 13% compared to 2020, said a report published by International Renewable Energy Agency (Irena).

Almost two-thirds or 163 gigawatts (GW) of newly installed renewable power in 2021 had lower costs than the world’s cheapest coal-fired option in the G20, stated Irena in its report titled 'Renewable Power Generation Costs in 2021.

As per the Agency estimates, given the current high fossil fuel prices, the renewable power added in 2021 saves around $55 billion from global energy generation costs in 2022.

Irena’s new report confirms the critical role that cost-competitive renewables play in addressing today’s energy and climate emergencies by accelerating the transition in line with the 1.5°C warming limit and the Paris Agreement goals.

Solar and wind energy, with their relatively short project lead times, represent vital planks in countries’ efforts to swiftly reduce, and eventually phase out, fossil fuels and limit the macroeconomic damages they cause in pursuit of net zero.

"Renewables are by far the cheapest form of power