Solar Soars: IRENA Report Reveals 86% of Renewable Energy Beats Fossil Fuels, Lightsource bp Leads the Charge

Fuel bills across the globe experienced a significant relief in 2022, thanks to the surge in renewable energy, with solar power at the forefront of a major decline in costs, according to a recently released report by the International Renewable Energy Agency (IRENA).

The IRENA report revealed a groundbreaking trend, with 86% (187GW) of newly commissioned renewable energy capacity costing less than electricity generated from fossil fuels. This shift signifies a potential seismic change in the global energy landscape.

Solar power, in particular, played a pivotal role in this transition. The report showcased a remarkable 89% decrease in the global average cost of solar photovoltaic-generated electricity between 2010 and 2022. Even in the face of inflation-related increases in material and equipment costs in 2022, solar electricity prices dropped by 3%. Notably, it cost 29% less than the most affordable fossil fuel solution, as fossil fuel prices experienced a surge.

Coupled with the recent projection that solar power investment is poised to surpass oil investment in 2023 and the record-breaking global installation of solar power for the tenth consecutive year, the future appears promising.

IRENA’s Director-General, Francesco La Camera, sees this as a potential turning point for renewables in the energy transition. La Camera stated, “Cost-competitiveness has never been greater despite the lingering commodity and equipment cost inflation around the world. The most affected regions by the historic price shock were remarkably resilient, in large part thanks to the massive increase of solar and wind in the last decade.”

Despite these positive developments, challenges persist. While China played a vital role in driving down global solar and renewable costs, variations were observed worldwide, with costs rising in several major markets.

Stability in fossil fuel prices and increased investment in fossil fuels could challenge the competitiveness of solar and other renewables. The ongoing upward trajectory of material and equipment costs for solar and renewables also poses a threat.

This underscores the importance of sustained investment in grid infrastructure and storage solutions to unlock the full potential of renewable energy and further reduce prices. Encouraging innovation and ensuring equitable access to clean energy globally remain imperative.

Lightsource BP’s Commitment

In response to these challenges, Lightsource BP is actively contributing to the transition to renewable energy. Operating in 19 countries, including burgeoning markets like Brazil, Poland, and Taiwan, the company is expanding its solar infrastructure investment. Notably, Lightsource BP is increasing battery storage capacity to store surplus electricity from solar farms, aiding the acceleration of the global transition to renewable energy.

The urgent need for this transition is emphasized by Francesco La Camera“There is no time for a new energy system to evolve gradually as was the case for fossil fuels. In preparation of the COP28 in Dubai later this year, today’s report shows once again that with renewables, countries have the best climate solution at hand to raise ambition and take actions in a cost-competitive way.”