“Nearly two-thirds of new renewables are cheaper than coal”

The price of electricity from solar PV, offshore and onshore wind dropped last year, according to a report

The cost of building and running a renewable energy project is relatively lower than that of a coal power station.

The International Renewable Energy Agency (IRENA) has today published its latest report titled Renewable Power Generation Costs 2021 which suggests almost two-thirds or 163GW of newly installed renewable power last year had lower costs than the world’s cheapest coal-fired power stations in the G20 region.

In recent weeks, several governments set out power supply emergency plans in fear of shortages and blackouts this winter.

In the UK, National Grid has already agreed with energy companies to keep coal plants at normal capacity in the coming months.

The authors of IRENA’s report estimate that the new renewable energy capacity might have saved around $55 billion (£46bn) from global energy generation costs.

The analysis stresses that the cost of electricity from solar PV, offshore and onshore wind last year fell by up to 15% compared to 2020.

Following the publication of the report, Francesco La Camera, Director-General of IRENA, commented: “2022 is a stark example of just how economically viable new renewable power generation has become.

“Renewable power frees economies from volatile fossil fuel prices and imports, curbs energy costs and enhances market resilience – even more so if today’s energy crunch continues.”

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