May 11, 2022

As Renewable Energy Costs Fall, Use Steadily Increases: IPCC Report

The development of renewable capacities and the scaling up of solutions has rapidly led to a considerable drop in the cost of renewable energy in recent years. As a result, the use of renewable energy has steadily increased, according to a draft report by the United Nations climate panel.

The latest report from the Intergovernmental Panel on Climate Change (IPCC) has highlighted the steady decline in the average cost of renewable energy sources, such as photovoltaic cells, onshore and offshore wind power, l concentrated solar power (CSP) and electric vehicle batteries. recent years around the world.

“In 2020, the levelized costs of energy (LCOE) of the four renewable energy technologies could compete with fossil fuels in many places,” the report says.

However, the report methodology does not include changes in costs incurred due to network integration or climate impacts. Social and environmental factors can also cause the cost of energy sources to change after deployment.

… But fossil fuel subsidies continue

While costs have come down significantly, fossil fuel subsidies around the world still allow them to be on par with renewables in terms of cost.

In 2021, fossil fuel subsidies reached $440 billion worldwide, according to data from the International Energy Agency (IEA). Subsidies to the fossil fuel industry are particularly harmful “because they distort markets, send the wrong price signals to users, widen fiscal deficits in developing economies, and discourage adoption of cleaner renewable energy,” said the IEA.

Iran, China and India are the top three providers of fossil fuel subsidies.

Despite this artificial parity, the use and deployment of renewable energy continues to grow at a steady pace. The use of photovoltaic cells and onshore and offshore wind power has grown exponentially since 2000, while the use of concentrated solar power is also growing steadily. The adoption of electric vehicles, a key measure to decarbonize the transport system, is also steadily accelerating.

(Edited by : Shoma Bhattacharjee)

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