António Guterres, Head of the United Nations, Predicts a Significant Shift Away from Fossil Fuels
Renewable Energy Overpowers Fossil Fuels Economically
The shift towards renewable energy has gained significant momentum, with solar and wind power becoming more cost-competitive than fossil fuels. According to the International Renewable Energy Agency (IRENA), 91% of newly commissioned utility-scale renewable capacity delivered electricity at lower costs than the cheapest fossil fuel options in 2024 [2][1].
The levelized cost of electricity (LCOE) for utility-scale solar photovoltaic (PV) power averaged about $0.043 per kWh globally, which is 41% cheaper than the lowest-cost fossil fuel options [2]. Onshore wind was even more competitive, with an LCOE of $0.034 per kWh – 53% cheaper than fossil fuels [2]. These cost reductions are due to advances in technology, economies of scale, improved efficiency, and competitive auction processes [1][2].
This trend is global, with Asia having the lowest renewable costs due to favorable conditions and market structures, while Europe and North America face higher costs primarily because of regulatory delays and balance-of-system expenses [2]. The renewables share in installed power capacity reached 46.4% globally in 2024, substantially displacing coal and gas in major markets like China, the EU, and the US [2].
The cost competitiveness of renewables is not just an environmental imperative but a smart economic choice. Renewables have avoided about $467 billion in fossil fuel costs globally in 2024, reinforcing the strong economic rationale for energy transition policies [4]. Additionally, global manufacturing capacity for solar PV and battery storage already exceeds near-term deployment needs, indicating no supply bottlenecks for accelerating renewables up to 2030 targets [3].
Key points: - Solar PV and onshore wind are now consistently cheaper than new fossil fuel generation on an LCOE basis (solar 41% cheaper, wind 53% cheaper) [2][3]. - Renewable energy accounted for nearly half of global installed power capacity in 2024, displacing fossil fuels in key markets [2]. - Technology improvements, competitive auctions, and scale economies continue to drive costs down [1][2]. - The economic benefits include hundreds of billions saved in fossil fuel costs, making renewables financially attractive for governments and investors [4]. - Deployment and manufacturing capacity are aligned to meet ambitious 2030 renewable expansion goals [3].
In other news, Antoño Guterres, the Secretary General of the United Nations, delivered an address titled "A Moment of Opportunity: Supercharging the Clean Energy Age." Meanwhile, Mark Zuckerberg, the CEO of Meta, has announced plans for new data centers, but has yet to specify whether they will be powered by renewable energy.
Pope Francis, in his environmental encyclical Laudato Si, lambasted wealthy countries and multinational corporations for the way they exploit the Earth and its people for profit. Bill Hare, chief executive of Climate Analytics, stated that any investment in new fossil fuels now is a fool's gamble. Developing regions like Africa have huge energy access needs and bigger renewable resources.
The rising energy demand is being driven by the need for more cooling due to increasing temperatures and soaring demand for power for data centers, particularly for artificial intelligence. However, the question remains whether the Earth can wait long enough for the current gang of thieves and crooks in power in the US to be ousted. The fossil fuel industry has spent hundreds of billions to distort the capitalist model and turn it to their advantage, capturing the US federal government and many state legislatures.
- The growth in renewable energy, as seen in solar and wind power, is economically overpowering fossil fuels, with utility-scale solar PV power costing 41% less than the cheapest fossil fuel options globally [2].
- The International Renewable Energy Agency (IRENA) reports that in 2024, 91% of newly commissioned utility-scale renewable capacity delivered electricity at lower costs than the cheapest fossil fuel options [2][1].
- In Antoño Guterres' address, "A Moment of Opportunity: Supercharging the Clean Energy Age," he emphasizes the potential for solar and wind power to lead the way in clean energy [1].
- Mark Zuckerberg's plans for new data centers offer the opportunity to invest in renewable energy, which could help reduce data centers' carbon footprint, particularly given the rising energy demand for artificial intelligence [1].
- The economics of renewable energy are not only environmentally beneficial but also demonstrate smart financial choices, as renewables have avoided around $467 billion in fossil fuel costs globally in 2024 [4].
- According to Climate Analytics, any investment in new fossil fuels now can be considered a gamble, while developing regions like Africa possess vast renewable resources that could address their massive energy access needs [1].
- The ongoing struggle in addressing climate change involves challenges such as the fossil fuel industry's historical influence, as it has spent hundreds of billions to distort the capitalist model and gain control over governments and legislatures [1].
