New renewable energy projects are generating electricity at lower costs than most fossil fuel sources worldwide, according to a report released Tuesday by the International Renewable Energy Agency (IRENA).
The agency said 91% of all large-scale renewable power projects launched last year were cheaper than fossil fuel alternatives.
The report said that 582 gigawatts of new renewable capacity—covering solar, wind, hydropower and geothermal—was added globally in 2024, nearly 20% more than the year before. Solar photovoltaic projects were, on average, 41% cheaper than the lowest-cost fossil fuels, while onshore wind was 53% cheaper.
Battery storage costs have fallen by 93% since 2010, contributing to the cost drop in renewables. IRENA attributed falling prices to technological improvements and economies of scale, but warned that geopolitical risks, trade restrictions and raw material shortages may temporarily slow progress or raise costs.
In 2024, renewables helped avoid fossil fuel costs of up to $467 billion, IRENA’s director general Francesco La Camera said. He added that while clean energy is currently cheaper and more secure, continued progress is not certain due to rising global tensions and supply chain issues.
Tripling global renewable energy capacity by 2030 was a key goal set at the COP28 climate summit in 2023, seen as crucial to limiting global warming to 1.5 degrees Celsius.
