Sustainability
Renewable Energy Cheaper Than Fossil Fuels
Renewable Energy Cheaper Than Fossil Fuels
More than 85% of renewable energy projects commissioned in 2022 were cheaper than fossil fuels, according to The International Renewable Energy Agency (IRENA). In 2020, IRENA stated that renewable energy sources could save $32.3 billion a year in energy costs; however, this number turned out to be understated. In 2022, renewable energy saved a whopping $56 Billion in energy costs in the U.S. alone.
The Transition to Renewable Energy is Happening
In 2015, 194 states collectively joined to create the Paris Agreement. This agreement outlines a goal to keep global warming from reaching 1.5°C over pre-industrial levels. 2023 was the hottest year on record and reached 1.45°. Despite this temperature rise, a transition to renewable energy is happening, and the results may prevent increased food shortages, coastal flooding, and extreme weather conditions.
The Levelized Cost of Wind and Solar Energy is Decreasing
IRENA reports that the levelized cost of solar energy dropped 85% from 2010 to 2020. In 2010 it was twice as costly as the most expensive fuel-powered energy option, whereas now, it is less costly than the cheapest fuel-powered energy option. Moreover, the levelized cost of wind energy declined by 48% between the same period of 2010-2020.
The Learning Rate of Renewable Energy Is Increasing
The learning rate for solar and wind technology has been remarkable. The drop in costs associated with renewable energy sources can be partly attributed to how efficient people have become in implementing solar PV and wind turbines.
This means that for the last 13 years, there have been people progressively specializing in making the quality of life on Earth better through renewable energy.
That is an inspiring thought!
How Much Cheaper is Renewable Energy Compared to Fossil Fuels?
IRENA reports further show that wind and solar projects at present are less costly than 77%-91% of coal-fired power plants currently operating in the U.S. and 87%-91% of plants operating in India. The potential of substituting these coal-fired power plants with renewable energy sources could mean relieving the earth’s atmosphere of 3 gigatons of CO2 annually.
Hydro Energy is Set to Follow
This great news surrounding solar and wind energy is just the beginning of more good news to come. Lower costs from solar and wind energy have further created the potential for the competitive use of hydrogen energy as well. With hydro energy set to follow solar and wind, a clean energy future could be closer than we imagined.
IC INSPIRATION
It has been the refinement of techniques used to manufacture and implement solar PV and wind turbines that have made renewable energy cheaper than fossil fuels.
A price decrease is an increase in specialization, and specialization implies something much deeper: dedication.
What is more encouraging is that saving $32.3 billion by renewable energy also means preventing global warming by relieving the Earth’s atmosphere of nearly 3 gigatons of CO2 annually. So, whether it’s the desire to make money or help the planet, it is a win-win situation. By making money you help the planet, and by helping the planet you make money, and there’s nothing quite as motivational as money.
Until this point, the narrative was that we could only continue to advance until Earth cannot sustain that development. Now, the narrative is that we will create a more sustainable earth as we advance so that we continue to advance. Before, progress came before well-being, but now, well-being is part of the progress.
Solar and wind energy are just one of the many sources of energy that can allow us to thrive as we move towards the future. Flying cars are also spot on with this clean Earth vision, and it seems that we’re just getting started!
