Solar energy is officially the cheapest way to generate electricity today, according to the International Energy Agency (IEA) in its newly released annual World Energy Outlook 2020 report. “With sharp cost reductions over the past decade, solar PV is consistently cheaper than new coal- or gas-fired power plants in most countries, and solar projects now offer some of the lowest electricity costs ever seen,” the document states.
The agency points out that for new solar projects in Europe and the United States, the average cost is $30-60/MWh, while in China and India it is around $20-40/MWh. This year's report estimates that solar power is about 20% to 50% cheaper today than the agency itself projected in 2019. Cost reductions were also noted for onshore and offshore wind energy.
“I see solar becoming the new king of the world’s electricity markets. Based on today’s policy settings, it is on track to set new records for deployment,” said Dr. Fatih Birol, Executive Director of the IEA. “If governments and investors stepped up their clean energy efforts, the growth of solar and wind would be even more spectacular – and extremely encouraging for overcoming the global climate challenge,” Birol added.
According to Birol, “the era of global oil demand growth will come to an end in the next decade,” while demand for coal will drop by 20% by 2040 – which would be historic milestones.
In addition to reducing emissions, investing in renewable energy can boost job creation – as previously highlighted by the International Renewable Energy Agency (IRENA).
Renewable Energy for a Possible Future
A leading source of global energy projections, this year's World Energy Outlook can help map out new possibilities for a sustainable future. The study outlines four alternative pathways for 2040, all of which incorporate a greater share of renewable energy.
The document highlights that, amid deep uncertainties caused by COVID-19, well-designed energy policies will be essential to create resilient energy systems that can meet climate goals.
However, action must begin immediately, as activist Greta Thunberg stated in an interview with The Guardian. She criticized the lack of urgency in addressing the climate crisis, arguing that we must act as quickly as the world is acting to contain the pandemic. “Leaders are happy to set targets for decades ahead, but they back away when immediate action is required,” she said.
The transition to “clean” energy can be accelerated, but this will depend on how governments act going forward. The World Energy Outlook details short-term actions to bring a sustainable future closer.
Via CicloVivo.
This article was written by Marcia Sousa. The translation is powered by AI.
