The International Renewable Energy Association (IRENA) has released a new report regarding the cost of generating power from renewable resources last year and the results are exciting. With solar leading the pack as usual, the cost of renewable energy has been in a near freefall and will continue drop over the next couple of years, so much so that we can expect prices to be 40% less than what they are today.
Giles Parkinson offered a much more in-depth breakdown of the numbers on Renew Economy where he discussed the various reasons why the price of solar is nose diving, how it’s effecting the energy market, and how the largest players in the energy market are responding to it:
“Last week, the Saudi Arabian power company ACWE, with some $24 billion in assets, set a world record low for the price of solar in the world’s largest tender. Its CEO, Paddy Padmanathan, told Renew Economy in an interview on Monday that the price of solar will fall by at least a third in coming years. He expects at least half of the 140,000GW of power capacity to be installed in the Middle East and north Africa in the coming decade to be solar.”
While the report and the articles regarding the report focused heavily on how well solar is doing, there are many other forms of renewable energy that are just as competitive, particularly wind. In North America, wind energy is especially competitive in the energy market for a number of reasons, one of which being the Great Plains which are incredibly easy to build on due to their flatness and openness and, more importantly, are ridiculously windy.
Computer World quoted a recent statement from IRENA Director-General Adnan Amin regarding the falling price of renewable energy and how important it is to utilize these falling prices to not only combat climate change, but bolster the economy:
“It has never been cheaper to avoid dangerous climate change, create jobs, reduce fuel import bills and future-proof our energy system with renewables. This requires public acknowledgement of the low price of renewables, an end to subsidies for fossil fuels, and regulations and infrastructure to support the global energy transition.”