Falling costs for renewable energy

Renewables are the cheapest alternative for communities not yet electified. Photo: DFID - UK Department for International Developmen/flickr.com/CC BY-NC-ND

A report from the International Renewable Energy Agency (IRENA) highlights the plummeting costs for renewable energy – making renewable energy more competitive then ever.

According to the IRENA report, “Renewable Power Generation Costs in 2014”, the cost of generating power from renewable energy sources has reached parity or dropped below the cost of fossil fuels for many technologies.

Biomass, hydropower, geothermal and onshore wind are all competitive with, or cheaper than, coal, oil and gas-fired power stations – cheaper even without financial support and despite falling oil prices. Solar photovoltaic (PV) is the most competitive, with solar PV module costs falling 75 per cent since 2009 and the cost of electricity from utility-scale solar PV dropping by 50 per cent since 2010. Residential solar PV systems are now 70% cheaper than they were in 2008.

In Europe and other countries, onshore wind power is one of the most competitive sources of new electricity capacity available. Individual wind projects are consistently delivering electricity for US$ 0.05 per kilowatt-hour (kWh) without financial support, compared to a range of US$ 0.045 to 0.14/kWh for fossil-fuel power plants.

When damage to human health from fossil fuels in power generation is considered in economic terms, along with the cost of CO₂ emissions, the price of fossil fuel-fired power generation rises to between US$ 0.07 and 0.19/kWh.

For 1.3 billion people worldwide who do not have electricity, renewables are the cheapest source of energy and they are also advantageous in cost and security for islands and other isolated areas mainly reliant on diesel.

In 2013, a record-high 120 gigawatts of renewable energy was added to the global energy mix and similar forecast exists for 2014. Similarly, renewable energy accounted for 22 per cent of global electricity generation and 19 per cent of total final energy consumption in 2013.

The continuously falling price of renewables and the clear business case for renewables present a historic opportunity to build a clean, sustainable energy system that contributes to human health and combats climate change.

Miriam Markus-Johansson

Source: www.irena.org/publications and http://www.irena.org/News/Description.aspx?NType=A&mnu=cat&PriMenuID=16&...

In this issue

Bridge to nowhere

Is natural gas a “bridge” to a sustainable energy system? That is what the gas industry has been saying for decades. But the bridge is not needed. Sustainable technology is here now.

Editorial: 1.5°C to stay alive

Greenhouse gas emissions must be reduced drastically to avoid dangerous climate change due to rising global temperature and to fulfil the objective of the 1992 UN Climate Convention.

Flexibilities threaten emission cuts from MCPs

Member states want to water down proposed new emission standards for medium-sized combustion plants, and there is now a risk that the European Parliament will push for even more exemptions.

Falling costs for renewable energy

A report from the International Renewable Energy Agency (IRENA) highlights the plummeting costs for renewable energy – making renewable energy more competitive then ever.

EU industrial air pollution cost up to €189 billion per year

The cost of damage caused by pollutant emissions into the air from the largest 14,000 industrial facilities in 2012 has been estimated as at least €59-189 billion, and half of the total cost was caused by just one per cent of the industrial plants.

German experts: Nitrogen cuts urgently needed

Excessive emissions of nitrogen compounds into the environment pose a threat to human health, waterways, biodiversity, and the climate.

Norwegian CCS ambitions might move to the EU

Norway wants an agreement with the EU on collective delivery of a common climate target. This could make it easier to finance a full-scale CCS plant in one of the EU member states.

Modest growth of renewables in EU area

An EEA report shows modest growth in renewable energy consumption with a dominance by PV and wind in 2013. Another study claims that the integration of around 60 per cent ..

Enforcement of ship sulphur standards

Member states must carry out inspections on at least one-tenth of the ships calling each year, and test the fuel on at least 20–40 per cent of the inspected ships.

Launch of Energy Union – mixed messages

The Commission proposes a range of policy and legislative packages to realise the Energy Union in the next five years. Environmental organisations are critical of mixed messages, inconsistencies and continued reliance on fossil fuels.

Bad air quality prevails

More than nine out of ten urban citizens in the EU are exposed to harmful levels of the air pollutants PM_2.5 and ozone.

Carbon storage a dead-end

CCS could make sense for industrial emissions. Or, then again, maybe not.

East German lignite at a crossroads

Lignite power in eastern Germany is disastrous for the climate and displaces more people than any other industry in Europe. Despite a target of 80 per cent renewable energy by 2050, phase-out plans are conspicuous by their absence.

Achieving NEC targets will cost less

Achieving the Commission’s health protection target for 2030 will be a third cheaper than previously estimated, according to new data.

Sweden: High health costs of bad air quality

Every year over 5,000 people in Sweden die prematurely due to air pollution, and the annual cost to society of health damage due to nitrogen oxides and particulate matter is estimated at SEK 42 billion.

Main menu

Falling costs for renewable energy

In this issue

Bridge to nowhere

Editorial: 1.5°C to stay alive

Flexibilities threaten emission cuts from MCPs

Falling costs for renewable energy

EU industrial air pollution cost up to €189 billion per year

German experts: Nitrogen cuts urgently needed

Norwegian CCS ambitions might move to the EU

Modest growth of renewables in EU area

Enforcement of ship sulphur standards

Launch of Energy Union – mixed messages

Bad air quality prevails

Carbon storage a dead-end

East German lignite at a crossroads

Achieving NEC targets will cost less

Sweden: High health costs of bad air quality

Publications

Food for Thought

Northern forests, climate change and the UNFCCC

EU climate targets aligned with the Paris agreement’s 1.5°C objective

Baltic Sea Offshore Wind Collaborative-Learning project

Air pollution in Europe and children’s health

Climate Change: A Himalayan Odessey

No further discussion needed. The agreed global goal is to limit temperature rise to 1.5°C

Fossil-free electricity 2021

What we do

Air pollution

Climate Change

Policy initiatives

Do Your Bit!