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1 July 2021updated 05 Nov 2021 9:33am

Share of renewables undercutting cheap fossil fuels doubled in 2020 – report

The falling cost of renewables gives emerging economies a strong business case to power past coal in pursuit of a net-zero economy, says the International Renewable Energy Agency.

By Energy Monitor Staff

In 2020, the share of renewable energy costing less than the most competitive fossil fuel doubled, reaching 62% or 162GW of total renewable power generation, reveals a report from the International Renewable Energy Agency.

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Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
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Protesters in Manila, the Philippines, during a demonstration to denounce coal and fossil fuel industries, September 2018. (Photo by Noel Celis/AFP).

New renewables projects from 2020 will save emerging economies $156bn (€131.61bn) over their lifespan as clean energy technologies increasingly undercut the operational costs of existing coal plants, the report states.

The analysis shows that the cost of concentrating solar power fell by 16% in 2020, while the cost of onshore and offshore wind fell by 13% and 9%, respectively. The cost of solar PV declined by 7%.

Since 2010, the 534GW of renewable capacity added in emerging economies at lower costs than the cheapest coal option has reduced electricity costs by around $32bn every year.

Renewables present emerging economies tied to coal with an economically attractive phase-out agenda enabling the transition to a net-zero economy without compromising energy security, the report concludes.

Free Report
img

Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

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