Renewables save $520b in fuel cost for the power sector

Around 86% of the commissioned RE capacity last year had lower costs than fossil fuel electricity.

The global power sector was able to save around $520b in fuel costs last year due to the renewable energy installed since 2000, according to a report by the International Renewable Energy Association (IRENA).

The report showed that around 86% or 178 gigawatts of the newly commissioned renewable capacity in 2022 had lower costs than fossil fuel-fired electricity.

Countries that are not members of the Organization for Economic Cooperation and Development are expected to save up to $580b over the lifespan of the new capacity additions in 2022.

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“IRENA sees 2022 as a veritable turning point in the deployment for renewables as its cost-competitiveness has never been greater despite the lingering commodity and equipment cost inflation around the world. The most affected regions by the historic price shock were remarkably resilient, in large part thanks to the massive increase of solar and wind in the last decade,” said Director-General Francesco La Camera.

The report added that cost-competitive renewables also contribute significantly to addressing the energy and climate crisis.

La Camera noted that around 1,000 GW of renewable power should be installed globally per year until 2030 to keep the temperature rise to 1.5 degrees Celsius.