Efforts to shift towards renewable energy contributed to reducing the cost of generating electricity last year, as it is less expensive than fossil fuels, whose prices inflated in 2022 to historical levels.
New energies added since 2000 have reduced the cost of fuel in the electricity sector in 2022 by no less than $520 billion. While the value of the decrease in costs since the addition of new capacities in countries that are not members of the Organization for Economic Cooperation and Development has reached more than $ 580 billion, according to the report of the International Renewable Energy Agency (IRENA).
The report indicated that the fossil fuel crisis accelerated the competitiveness of renewable energy despite the inflation in the costs of goods and equipment around the world, as the costs of 86% (187 gigawatts) of the total capacity of renewable energy projects that were operated in 2022 were less than the costs of electricity generated from Fossil fuel.
Environmental benefits
In addition to the significant cost savings, there are significant economic and climate benefits from reducing carbon dioxide emissions. Relying more on renewable energies will reduce the pressures of rising fossil fuel prices, which many governments may have been unable to mitigate through public funding.
Francesco La Camera, Director General of La Camera, Director General of the International Renewable Energy Agency, said in a statement: “The International Renewable Energy Agency views 2022 as a real turning point in terms of the deployment of renewable energy sources, as these sources have recorded unprecedented levels in terms of cost competitiveness despite Inflation in the costs of goods and equipment around the world.
La Camera added: “Today, renewable energy has gained greater economic feasibility, but the world must add 1,000 gigawatts of renewable energy annually on average until 2030 to keep the temperature at 1.5 degrees Celsius, that is, three times more than the levels of 2022. Time is running out.” “It is sufficient to gradually transition to a new energy system, as was the case with fossil fuels.”
