IRENA: 91% of green energy projects are more profitable than fossil fuel power plants

In 2024, the cost of renewable energy remained significantly lower than that of any new fossil source. About it says in a new report by the International Renewable Energy Agency (IRENA).

For example, solar power electricity was on average 41% cheaper than the cheapest fossil fuel alternative, and wind power was 53% cheaper.

Wind power remained the cheapest source at $0.034 per kWh.

In 2024, 582 GW of new "green" capacities were commissioned, which allowed avoiding fossil fuel costs of about $57 billion.

About 91% of new projects were more profitable than any new fossil fuel power plant.

The report also notes a decline in the cost of energy storage systems. Batteries have fallen in price by 93% since 2010 and reached $192/kWh in 2024.

At the same time, the report notes that the global energy transformation is facing new challenges, such as high grid connection costs, permitting delays, trade tariffs, raw material shortages, and financing risks.

In Europe and North America, the cost of deploying projects is increasing due to complex permitting procedures and a shortage of grid capacity.

In contrast, Asia, Africa and Latin America, where the pace of technology adoption is higher, are expected to see further cost reductions.

Digital technologies, including artificial intelligence, are being used to improve the efficiency of renewable capacities and grid flexibility.

But to unlock the full potential, investments in digital infrastructure, modernization of power grids, and political stability are needed.

• UN Secretary General Antonio Guterres called on large technology companies to commit to fully switch data centers to renewable energy by 2030.