Substantial contribution to energy transition

Unlike the customary pessimism of such reports, two reports on the development of renewable energy published by international agencies on Tuesday both convey rare optimism, albeit cautious, about the sector's prospects, citing the increasingly competitive generation costs of clean energy as a prime factor.

"Total installed costs for renewable power decreased by more than 10 percent for all technologies between 2023 and 2024, except for offshore wind, where they remained relatively stable, and bioenergy, where they increased by 16 percent," according to Renewable Power Generation Costs in 2024 issued by the International Renewable Energy Agency.

Renewables continue to prove themselves as the most cost-competitive source of new electricity generation, the report states. Globally, 91 percent of new renewable projects that became operational last year offered cheaper electricity than the lowest-cost, newly built fossil fuel alternative.