Renewables continued to dominate fossil fuels on value in 2024, in response to a new report from the Worldwide Renewable Power Company (IRENA). The massive takeaway: Clear power is the most cost effective energy round – by a large margin. So it’s fairly dangerous enterprise that the most important grid improve venture in US historical past simply acquired kneecapped by Trump’s Division of Power to cease the “inexperienced rip-off.”
On common, solar energy was 41% cheaper than the lowest-cost fossil gas in 2024, and onshore wind was 53% cheaper. Onshore wind held its spot as probably the most reasonably priced new supply of electrical energy at $0.034 per kilowatt-hour, with photo voltaic shut behind at $0.043/kWh.
IRENA’s report says international renewables added 582 gigawatts (GW) of capability final 12 months, which averted about $57 billion in fossil gas prices. That’s not a small dent. Much more spectacular: 91% of all new renewable energy tasks inbuilt 2024 had been cheaper than any new fossil gas possibility.
Technological innovation, sturdy provide chains, and economies of scale are driving the price benefit. Battery costs are serving to too: IRENA says utility-scale battery power storage techniques (BESS) are actually 93% cheaper than they had been in 2010, with costs averaging $192/kWh in 2024.
But it surely’s not all clean crusing. The report flags short-term value pressures from commerce tensions, materials bottlenecks, and rising prices in some areas. North America and Europe really feel extra squeezed than others resulting from allowing delays, restricted grid capability, and better system prices.
In the meantime, international locations in Asia, Africa, and South America might see sooner value drops due to stronger studying charges and plentiful photo voltaic and wind assets.
One large problem is financing. In growing international locations, excessive rates of interest and perceived investor threat inflate the levelized value of electrical energy of renewables. For instance, wind energy era prices had been about the identical in Europe and Africa final 12 months ($0.052/kWh), however financing made up a a lot bigger share of venture prices in Africa. IRENA estimates the price of capital was simply 3.8% in Europe however 12% in Africa.
And even when tasks are reasonably priced to construct, many are getting caught in grid connection queues or stalled by sluggish allowing. These “integration prices” are actually a significant hurdle, particularly in fast-growing G20 and rising markets.
Tech helps with a few of that – hybrid solar-wind-storage setups and AI-powered instruments are enhancing grid efficiency and venture effectivity. However digital infrastructure and grid modernization nonetheless lag in lots of locations, holding renewables again.
“Renewables are rising, the fossil gas age is crumbling,” mentioned UN Secretary-Normal António Guterres. “However leaders should unblock boundaries, construct confidence, and unleash finance and funding.”
IRENA’s backside line is that the economics of renewables are stronger than ever, however to maintain the momentum going, governments and markets want to scale back dangers, streamline allowing, and spend money on grids.
Electrek’s Take
Talking of unblocking boundaries and funding, the alternative simply occurred right this moment in Trump World. The Division of Power simply canceled a $4.9 billion conditional mortgage dedication for the 800-mile Grain Belt Specific Part 1 transmission venture, the greatest transmission line in US historical past.
It’s a high-voltage direct present (HVDC) transmission line connecting Kansas wind farms throughout 4 states. It’s going to join 4 grids, enhancing reliability. Will probably be capable of energy 50 information facilities and create 5,500 jobs. Part 1 is because of begin subsequent 12 months.
The brand new grid can even join all types of power, not simply renewables, and it’s tremendous pathetic that Invenergy needed to stoop to place up a map on the venture’s residence web page right this moment displaying the way it will transmit fossil fuels, the “present dispatchable era supply,” and felt it needed to depart renewables off the map totally. Sorry, Kansas wind farms, you get no point out as a result of this administration doesn’t such as you.
Chicago-based Invenergy plans to construct the 5 GW Grain Belt Specific in phases from Kansas to Illinois. The corporate says the venture will save prospects $52 billion in power prices over 15 years. Senator Josh Hawley (R-MO) complained to Trump concerning the venture, calling it a “inexperienced rip-off,” and acquired the federal government mortgage canceled based mostly on a lie, claiming it will value taxpayers “billions.” This was Invenergy’s response on X:
As ordinary, Trump was swayed by the final particular person within the room, and Hawley shot a complete area within the foot when an upgraded grid and extra renewables are wanted greater than ever. Hopefully, this venture can proceed regardless of the ignorant shortsightedness coming from the Republicans (who paradoxically launched an Ai Motion Plan right this moment).
It beggars perception that this political get together is that this remoted from the remainder of the world – nicely, moreover our besties Iran, Libya, and Yemen, who aren’t a part of the Paris Settlement both – and being that the US is the world’s No 2 polluter, the world will endure for its vanity.
Learn extra: FERC: Photo voltaic + wind made up 96% of latest US energy producing capability in first third of 2025
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