Renewable energies in the upswing: 91 % cheaper than fossil fuels!

Renewable energies in the upswing: 91 % cheaper than fossil fuels!

Afrika, Kontinent - The global efforts to transition to renewable energies show impressive progress. According to Econews , 91 % of all newly committed projects in the area of renewable energies are already more economical than Fossil alternatives. This marks a decisive turning point in the energy sector.

The average price of solar power from photovoltaics is remarkable 41 % cheaper than that of fossil power plants. At the same time, wind power is even 53 % below the cost of fossil options. Onshore wind has established itself as the cheapest new power source with just $ 0.034 per kilowatt hour.

effects on the global economy

The introduction of 582 gigawatts of new capacities from renewable energies saved the global economy in 2024 fossil fuels worth $ 57 billion through avoided fuel costs. UN General Secretary António Guterres emphasizes that the age of fossil energies is coming to an end and therefore demands targeted investments in the right policy and capital markets to support change.

However, Francesco La Camera, the general secretary of the International Agency for Renewable Energies (Irena), emphasizes that geopolitical tensions, commercial barriers and increasing financing costs could be inhibitory in the progress of renewable energies. Countries in the global south in particular have to deal with high capital costs and regulatory hurdles, while in Africa financing costs of up to 12 % are recorded in Europe compared to around 3.8 %.

technological developments and challenges

Another essential element of transition to renewable energies is technological innovations. The prices for battery stores have fallen by 93 % since 2010 and are currently $ 192 per kilowatt hour for large systems. Combinations of wind, sun and battery storage as well as AI-based network technologies are considered crucial for the flexibility and stability of the future electricity system.

But the challenges remain. Bottlenecks, approval backlog and a lack of flexibility hinder many countries when expanding. A modernization of the power grids in the G20 countries and emerging countries is essential to support the pace of growth in renewable energies. Irena warns that without targeted political and financial measures, the energy transition could also become a question of justice.

global energy trends

Another significant influence on the global energy markets has the current situation in the Middle East. According to the ie tense geopolitical conditions influence oil and gas supply significantly. The proportion of sea deal with crude oil from this region to Asia is forecast from 40 % to 50 % by 2050. This shows the increasing dependence of Asia on additional LNG deliveries.

With the global energy crisis, the transition to clean energies is becoming increasingly important. Topics such as affordability of energy, stability of the power supply and resistance of the supply chains for clean technologies are essential. The protection of consumers from price fluctuations cost 2022 governments of $ 900 billion in emergency aids. In order to counteract this development, investments in robust and digitized networks should be made in order to meet the challenges that are associated with increasing use of renewable energies.