More than 90% of new renewable energy capacity is now cheaper than fossil fuels

[Bergslagstroll]

Renewable energy are outcompeting fossil fuel all across the world.

"Solar and wind are now almost always the least expensive and fastest option for new energy generation, according to the UN.

In 2024, data reveals that additions to global renewable energy capacity reached 582 gigawatts - a nearly 20 per cent increase from 2023 and the highest annual expansion since records began.

Almost all new power capacity built around the world came from renewables, and almost every continent on Earth added more renewables capacity than fossil fuels last year."

Solar is now 41% cheaper than fossil fuels, UN report shows

The global switch to renewable energy has passed a “positive tipping point”, according to two United Nations reports released on Tuesday.

www.euronews.com

With for example solar power and batteries being able to provide a large share of 24/365 power.

“Cloudy days mean that 24/365 solar generation – maintaining the same constant solar output every hour of every day of the year – would need so much solar and battery that it is likely uneconomical. However, in sunny cities it is possible to get more than 90% of the way. Las Vegas can reach 97% of the way to 1 GW constant supply and Muscat in Oman – 99%, using 6 GW solar panels and 17 GWh battery. Even cloudier cities like Birmingham can get 62% of the way to a constant supply every hour of every day across the year.”

Solar electricity every hour of every day is here and it changes everything | Ember

Batteries are now cheap enough to unleash solar energy’s full potential, getting as close as 97% of the way to delivering constant electricity supply 24 hours across 365 days cost-effectively in the sunniest places.

ember-energy.org

 

[Allan]

Good article. Renewable energy production is advancing but really isn't a new concept. Canada produces 60% of its electricity from hydroelectric systems.

 

[Volunteer]

Yet many are blind to the economics of renewables. Tax credits are not even needed. If government allowed free market forces a greater role to determine energy prices fossil fuels would begin to transition out. Where are the conservatives?

 

[longview]

The problem with such stories is that they do not account for the storage costs, and the extra capacity to charge that storage.
Say someone has a home that uses on average 24 kWh per day (1 kW per hour ).
They would need (AI answer) seems close to what I have seen.

A solar panel capacity of approximately
6.23 kW is needed to produce 24 kWh24 kWh per day, assuming 5 peak sunlight hours and
23% system losses.

but you would also need about 10kWh of battery capacity to store that electricity for when the sun is not shining.
While the prices of the panels and batteries are coming down, the combines cost would still need to be counted.

 

[Bergslagstroll]

Good article. Renewable energy production is advancing but really isn't a new concept. Canada produces 60% of its electricity from hydroelectric systems.

Hydroelectric systems can produce electricity on demand and also provide seasonal storage. So it can be good to combine variable sources like wind and solar power with hydropower. There it can be potential to build more hydropower in for example African countries.

World's largest power station could provide energy for half of US homes

The Grand Inga Dam in the Democratic Republic of Congo has a maximum capacity of 70 gigawatts.

www.newsweek.com

While in developed countries can it be less opportunities to increase hydropower but it can be potential for building pump energy storage.

Swiss 'water battery' boosts Europe's energy storage plans – DW – 11/30/2022

A Swiss company has built what is being called a giant water battery deep under the Alps that provides an energy storage capacity equivalent to 400,000 electric car batteries. It could be a game changer.

www.dw.com

 

[Bergslagstroll]

The problem with such stories is that they do not account for the storage costs, and the extra capacity to charge that storage.
Say someone has a home that uses on average 24 kWh per day (1 kW per hour ).
They would need (AI answer) seems close to what I have seen.

but you would also need about 10kWh of battery capacity to store that electricity for when the sun is not shining.
While the prices of the panels and batteries are coming down, the combines cost would still need to be counted.

My second source address the cost.

"The economics are great in sunny cities – just $104/MWh to get 97% of the way to 24/365 solar, 22% lower cost than just a year earlier and cheaper than new coal or new nuclear.

In a sunny city like Las Vegas, the estimated Levelised Cost of Electricity (LCOE) at this 97% benchmark is $104/MWh. This is already 22% lower than the $132/MWh estimate based on global average capital costs of solar and battery a year earlier. It is also more cost-effective than coal in many regions ($118/MWh) and far cheaper than nuclear ($182/MWh)."

That batteries continue to become more affordable and also advancement in types of batteries that can offer cheaper and longer duration of storage. Solar power and batteries can also be combined with other forms of renewable energy and ways to balance the grid.

Australia needs better ways of storing renewable electricity for later. That’s where ‘flow batteries’ can help

Flow batteries can feed energy back to the grid for up to 12 hours – much longer than lithium-ion batteries, which only last four to six hours.

theconversation.com

 

[longview]

My second source address the cost.

"The economics are great in sunny cities – just $104/MWh to get 97% of the way to 24/365 solar, 22% lower cost than just a year earlier and cheaper than new coal or new nuclear.

In a sunny city like Las Vegas, the estimated Levelised Cost of Electricity (LCOE) at this 97% benchmark is $104/MWh. This is already 22% lower than the $132/MWh estimate based on global average capital costs of solar and battery a year earlier. It is also more cost-effective than coal in many regions ($118/MWh) and far cheaper than nuclear ($182/MWh)."

That batteries continue to become more affordable and also advancement in types of batteries that can offer cheaper and longer duration of storage. Solar power and batteries can also be combined with other forms of renewable energy and ways to balance the grid.

Australia needs better ways of storing renewable electricity for later. That’s where ‘flow batteries’ can help

Flow batteries can feed energy back to the grid for up to 12 hours – much longer than lithium-ion batteries, which only last four to six hours.

theconversation.com

Except a cost of $104/MWh is quite a bit higher than the national wholesale electricity rate, ~$40/MWh.
Do you really think that all those utilities are selling that electricity at a loss?

 

[Bergslagstroll]

Except a cost of $104/MWh is quite a bit higher than the national wholesale electricity rate, ~$40/MWh.
Do you really think that all those utilities are selling that electricity at a loss?

A cost of $104/MWh is competitive in many regions around the world.

Prices – Electricity 2025 – Analysis - IEA

Electricity 2025 - Analysis and key findings. A report by the International Energy Agency.

www.iea.org

That a big reason for the US low electricity price is natural gas. There many countries around the world lack own natural gas resources. So for example EU countries had to import from Russia. There this led to spiking prices when Russia manipulated the prices both as black mail and as away to fund their invasion of Ukraine. There renewable energy played a key role in quickly reduce the dependency of Russian natural gas.

Wind and solar growth save €12 billion since Russia invaded Ukraine | Ember

One year on from Russia’s invasion of Ukraine, wind and solar growth has saved the EU €12 billion in avoided gas costs.

ember-energy.org

While natural gas and other fossil fuel also have enormous unpaid social and environmental costs.

Fossil Fuel Subsidies Surged to Record $7 Trillion

Scaling back subsidies would reduce air pollution, generate revenue, and make a major contribution to slowing climate change

www.imf.org

 

[Steve Case]

Except a cost of $104/MWh is quite a bit higher than the national wholesale electricity rate, ~$40/MWh.
Do you really think that all those utilities are selling that electricity at a loss?

My search for a link that agrees with your ~$40/MWH comes up with this:

In most U.S. regions, 2024 wholesale electricity prices will be similar to 2023 - U.S. Energy Information Administration (EIA)

www.eia.gov

and the raw average comes to ~$43.6/MWH

So it looks like you're right for the USA. Bergslagstroll's number is for global costs.

So 104 vs 132. One has to wonder how much bias went into the calculations that came up with those two numbers.

 

[longview]

A cost of $104/MWh is competitive in many regions around the world.

Prices – Electricity 2025 – Analysis - IEA

Electricity 2025 - Analysis and key findings. A report by the International Energy Agency.

www.iea.org

That a big reason for the US low electricity price is natural gas. There many countries around the world lack own natural gas resources. So for example EU countries had to import from Russia. There this led to spiking prices when Russia manipulated the prices both as black mail and as away to fund their invasion of Ukraine. There renewable energy played a key role in quickly reduce the dependency of Russian natural gas.

Wind and solar growth save €12 billion since Russia invaded Ukraine | Ember

One year on from Russia’s invasion of Ukraine, wind and solar growth has saved the EU €12 billion in avoided gas costs.

ember-energy.org

While natural gas and other fossil fuel also have enormous unpaid social and environmental costs.

Fossil Fuel Subsidies Surged to Record $7 Trillion

Scaling back subsidies would reduce air pollution, generate revenue, and make a major contribution to slowing climate change

www.imf.org

Tor me from your graph it looks like most are below $104/MWh so adding in higher prices increases the average!

 

[longview]

My search for a link that agrees with your ~$40/MWH comes up with this:

In most U.S. regions, 2024 wholesale electricity prices will be similar to 2023 - U.S. Energy Information Administration (EIA)

www.eia.gov

and the raw average comes to ~$43.6/MWH

So it looks like you're right for the USA. Bergslagstroll's number is for global costs.

So 104 vs 132. One has to wonder how much bias went into the calculations that came up with those two numbers.

Actually the global average is lower than the $104 /MWh, so adding in at that rate will increase the average price.

 

[pedex]

The problem with such stories is that they do not account for the storage costs, and the extra capacity to charge that storage.
Say someone has a home that uses on average 24 kWh per day (1 kW per hour ).
They would need (AI answer) seems close to what I have seen.

but you would also need about 10kWh of battery capacity to store that electricity for when the sun is not shining.
While the prices of the panels and batteries are coming down, the combines cost would still need to be counted.

Also doesn't take into account replacement cause these systems have very short lifespans.

Ive been using solar off grid for 8 years. It has its place but its not as simple as its made out to be. Location makes a big difference. A handful of US states have suitable climate. Midwest and eastern parts of US water vapor/humidity and clouds as well as latitude reduce the output a great deal.

What we should be doing is a holistic approach and using nature instead of brutally overpowering it. Take advantage of what is there instead of ignoring it. Its just inconvenient and requires a giant change in mindset. Still what is alos often unmentioned is all these "alternative" systems all require the fossil fueled industrial base we have to produce.

 

[Bergslagstroll]

Tor me from your graph it looks like most are below $104/MWh so adding in higher prices increases the average!

Solar power and other renewable are now the cheapest option all around the world. While at the same time it have been rapid advancement in batteries. So just solar and batteries alone can offer 24/7 power at competitive prices. There the transition could have come decades earlier if economical and political interests hadn't delayed the transition.

How the Oil Industry Has Sustained Market Dominance Through Policy Influence

A Historical Analysis of the Oil and Gas Playbook Against Renewables and Electric Vehicles

influencemap.org

How cheap solar power could have arrived decades ago

If there’s a good news climate change story right now, one to counteract the grim daily scroll of reports about wildfires, droughts, dying coral reefs, and deadly heatwaves, it’s the stunning rise of solar power.

sciencebusiness.net

 

[Bergslagstroll]

Also doesn't take into account replacement cause these systems have very short lifespans.

Ive been using solar off grid for 8 years. It has its place but its not as simple as its made out to be. Location makes a big difference. A handful of US states have suitable climate. Midwest and eastern parts of US water vapor/humidity and clouds as well as latitude reduce the output a great deal.

What we should be doing is a holistic approach and using nature instead of brutally overpowering it. Take advantage of what is there instead of ignoring it. Its just inconvenient and requires a giant change in mindset. Still what is alos often unmentioned is all these "alternative" systems all require the fossil fueled industrial base we have to produce.

Germany already get 14 percent of electricity from solar power. With Berlin being on roughly the same latitude as Calgary and also having cloudy weather.

Germany hits 62.7% renewables in 2024 electricity mix, with solar contributing 14%

The Fraunhofer Institute for Solar Energy Systems (Fraunhofer ISE) reports that Germany generated 72.2 TWh of solar in Germany in 2024, accounting for 14% of total electricity generation.

www.pv-magazine.com

There the lifespan emissions of renewable energy being very low compared to fossil fuel.

Why wind and solar are key solutions to combat climate change | Ember

The cheapest, fastest and most scalable interventions for the climate crisis this decade.

ember-energy.org

While at the same time it also about saving both energy and resources and combining social and environmental sustainability.

How Amsterdam Uses the Doughnut Economics Model to Create a Balanced Strategy for Both the People and the Environment

Amsterdam announced a city-wide strategy based on the Doughnut Economics model, aiming to balance social needs with the imperative for climate action.

www.archdaily.com

 

[longview]

Solar power and other renewable are now the cheapest option all around the world. While at the same time it have been rapid advancement in batteries. So just solar and batteries alone can offer 24/7 power at competitive prices. There the transition could have come decades earlier if economical and political interests hadn't delayed the transition.

How the Oil Industry Has Sustained Market Dominance Through Policy Influence

A Historical Analysis of the Oil and Gas Playbook Against Renewables and Electric Vehicles

influencemap.org

How cheap solar power could have arrived decades ago

If there’s a good news climate change story right now, one to counteract the grim daily scroll of reports about wildfires, droughts, dying coral reefs, and deadly heatwaves, it’s the stunning rise of solar power.

sciencebusiness.net

Just saying the words does not make something real!

 

[pedex]

Germany already get 14 percent of electricity from solar power. With Berlin being on roughly the same latitude as Calgary and also having cloudy weather.

Germany hits 62.7% renewables in 2024 electricity mix, with solar contributing 14%

The Fraunhofer Institute for Solar Energy Systems (Fraunhofer ISE) reports that Germany generated 72.2 TWh of solar in Germany in 2024, accounting for 14% of total electricity generation.

www.pv-magazine.com

There the lifespan emissions of renewable energy being very low compared to fossil fuel.

Why wind and solar are key solutions to combat climate change | Ember

The cheapest, fastest and most scalable interventions for the climate crisis this decade.

ember-energy.org

While at the same time it also about saving both energy and resources and combining social and environmental sustainability.

How Amsterdam Uses the Doughnut Economics Model to Create a Balanced Strategy for Both the People and the Environment

Amsterdam announced a city-wide strategy based on the Doughnut Economics model, aiming to balance social needs with the imperative for climate action.

www.archdaily.com

None of your citations address what I'm talking about.

 

[Bergslagstroll]

Just saying the words does not make something real!

Even Republican states and Republican voters see the benefits with renewable energy.

Surprise: 4 of the top 5 clean energy states are red states

A new report shows the US tripled its solar, wind, and geothermal power since 2015, with clean energy gains in all 50 states.

electrek.co

Republican states are going strong on solar and wind, but not for the climate

People are building clean energy for economic and energy security reasons, and that's fine.

www.sustainabilitybynumbers.com

While Trump and Republicans in Congress instead listen to their fossil fuel donors.

The fossil fuel industry spent $219 million to elect the new U.S. government » Yale Climate Connections

Most of that money went to Republicans.

yaleclimateconnections.org

Trump promised to lower energy costs – his tax bill will raise them for people in red states the most

Household energy bills in some Republican-leaning states could rise by more than $600 every year, analysis of the so-called ‘big, beautiful bill’ finds

www.theguardian.com

 

[Bergslagstroll]

None of your citations address what I'm talking about.

Solar power even works north of the Arctic circle.

Solar energy Finland: 400 MW Solar Plant Set to Transform Lapland

A Finnish energy company, Ilmatar Energy, is planning to build a massive solar power plant in Sodankylä, Lapland, near the Arctic Circle. This project — whic

www.pvknowhow.com

There the electricity generated during summer time can be used to generate heat. There the heat can be stored and used in the district heat network during the cold winter months.

World’s largest sand battery starts slashing emissions in Finnish town

The 15 metres wide battery can store a month's heat demand in summer - how does it work?

www.euronews.com

Solar power also has a lifespan of 25-30 years and it has been an advancement in recycling.

As Millions of Solar Panels Age Out, Recyclers Hope to Cash In

Solar panels have a lifespan of 25 to 30 years, but they contain valuable metals, including silver and copper. With a surge of expired panels expected soon, companies are emerging that seek to recycle the reusable materials and keep the panels out of landfills.

e360.yale.edu

 

[pedex]

Solar power even works north of the Arctic circle.

Solar energy Finland: 400 MW Solar Plant Set to Transform Lapland

A Finnish energy company, Ilmatar Energy, is planning to build a massive solar power plant in Sodankylä, Lapland, near the Arctic Circle. This project — whic

www.pvknowhow.com

There the electricity generated during summer time can be used to generate heat. There the heat can be stored and used in the district heat network during the cold winter months.

World’s largest sand battery starts slashing emissions in Finnish town

The 15 metres wide battery can store a month's heat demand in summer - how does it work?

www.euronews.com

Solar power also has a lifespan of 25-30 years and it has been an advancement in recycling.

As Millions of Solar Panels Age Out, Recyclers Hope to Cash In

Solar panels have a lifespan of 25 to 30 years, but they contain valuable metals, including silver and copper. With a surge of expired panels expected soon, companies are emerging that seek to recycle the reusable materials and keep the panels out of landfills.

e360.yale.edu

Yes it works anywhere, not the point. Let me give you a real world example. In Ohio I need double the solar capacity versus Denver Colorado.

Energy can stored a whole bunch of different ways. What else is new.

Uh No it does not. The panels in real life degrade and lose capacity to the point where even 18 years is pushing it depending on the environment. Battery storage you might get around 8 to 10 years these days with lithium. I just upgraded to those.

ALL of these things depend on a fossil fuel dependent industrial base.

Not all things recycle well. Wind turbine blades for example. Doubt shipping my dead panels somewhere is worth it either.

These systems have their place but they are not just plug and play usable anywhere despite all the hype and BS out there. Don't believe. Spend the $$ and try it.

 

[longview]

Even Republican states and Republican voters see the benefits with renewable energy.

Surprise: 4 of the top 5 clean energy states are red states

A new report shows the US tripled its solar, wind, and geothermal power since 2015, with clean energy gains in all 50 states.

electrek.co

Republican states are going strong on solar and wind, but not for the climate

People are building clean energy for economic and energy security reasons, and that's fine.

www.sustainabilitybynumbers.com

While Trump and Republicans in Congress instead listen to their fossil fuel donors.

The fossil fuel industry spent $219 million to elect the new U.S. government » Yale Climate Connections

Most of that money went to Republicans.

yaleclimateconnections.org

Trump promised to lower energy costs – his tax bill will raise them for people in red states the most

Household energy bills in some Republican-leaning states could rise by more than $600 every year, analysis of the so-called ‘big, beautiful bill’ finds

www.theguardian.com

What is your point?

 

[pedex]

love the term renewable lol

ya its renewable up until the point where the fossil fuels run out

 

[Bergslagstroll]

Yes it works anywhere, not the point. Let me give you a real world example. In Ohio I need double the solar capacity versus Denver Colorado.

Energy can stored a whole bunch of different ways. What else is new.

Uh No it does not. The panels in real life degrade and lose capacity to the point where even 18 years is pushing it depending on the environment. Battery storage you might get around 8 to 10 years these days with lithium. I just upgraded to those.

ALL of these things depend on a fossil fuel dependent industrial base.

Not all things recycle well. Wind turbine blades for example. Doubt shipping my dead panels somewhere is worth it either.

These systems have their place but they are not just plug and play usable anywhere despite all the hype and BS out there. Don't believe. Spend the $$ and try it.

Yes that can of course be difference between location, but doubt it's such big difference between Colorado and Ohio. Also as I showed the lifetime emissions are extremely low for renewable energy compared to fossil fuels.

Cheap renewable energy can also help to decarbonize more industries. Like for example heating processes in industries.

2024 Climate Tech Companies to Watch: Rondo Energy and its hot bricks

Rondo is using this simple, cheap material to decarbonize one of the world’s dirtiest sectors.

www.technologyreview.com

There is also rapid advancement in, for example, electric vehicles.

How China’s EV Boom Powers Its Tech Rise

Once an auto underdog, the country’s current dominance of the global electric-vehicle market says a lot about why it brims with confidence in other fields.

time.com

While also advancement in recycling of wind power.

When wind turbine blades get old what's next?

As more wind farms are decommissioned ways need to be found to dispose of their tough turbine blades.

www.bbc.com

 

[Airyaman]

 

[pedex]

The cheapest most efficient way of moving goods and people hasn't changed in about a century. We built it out then destroyed it for the least efficient way.

 

[longview]

The low duty cycle and non dispatchable nature of solar power is a major limitations in our on demand world. The type and scale of energy storage required to make solar compatible with our demand, is not something batteries can solve.