Renewable Energy Costs Drop: 86% of New Projects Cheaper than Fossil Fuels, Report Predicts Major Growth.

The International Renewable Energy Agency (EY) has published a report titled Renewable Power Generation Costs in 2022, which predicts that around 86% of newly commissioned utility-scale renewable power generation produced electricity at a lower cost than the average cost of fossil fuel generation. The report also stated that renewables will account for 38% of the power mix by 2030 and 62% by 2050, and China, Europe, and the US will drive a 53% increase in solar and wind generation, producing over 57% of global solar and winds output by 2050. However, the report highlighted the need for a fundamental energy system transformation, with EY predicting flexibility requirements in Europe to increase ten times by 2050 amounting to 26% of regional electricity demand. Supply chain issues and permitting delays are also hindering the construction and installation of new assets in the US.