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A new report released by the International Renewable Energy Agency (IRENA) on Tuesday, July 22, highlights the growing economic competitiveness of renewable energy technologies in comparison to traditional fossil fuels. The study confirms that renewable energy sources have continued to offer a significant cost advantage, a trend largely attributed to ongoing technological innovation, enhanced efficiency in global supply chains, and the increasing benefits of economies of scale.
According to IRENA’s 2024 analysis, solar photovoltaic (PV) power was, on average, 41% less expensive than the cheapest fossil fuel-based power generation options. Onshore wind energy performed even better, with costs coming in 53% lower than the most affordable fossil fuel alternatives. Specifically, onshore wind emerged as the most cost-effective renewable energy source, with an average generation cost of just USD 0.034 per kilowatt-hour (kWh), followed closely by solar PV at $0.043 per kWh.
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The report also underscored the significant financial and environmental benefits of large-scale renewable energy deployment. In 2024 alone, the global addition of 582 gigawatts (GW) of renewable energy capacity led to an estimated savings of USD 57 billion by offsetting the need for fossil fuel consumption. IRENA emphasized the scale of this transition by noting that 91% of all new renewable energy projects commissioned in 2024 were more economically viable than any new fossil fuel-based generation options. The findings reinforce the role of renewables not only in achieving climate goals but also in supporting economic efficiency and energy security across the globe.
