Any discussion about renewable power turns into a talk about the increased expenses that it causes. Finances have played a major role in hindering the development and commonplace use of renewable energy sources as most residential and even commercial properties simply can’t afford the installation and maintenance costs.
With the threat of climate change looming over our heads like a dark cloud ready to erupt, it is now more important than ever to utilize various renewable sources of energy instead of depending on coal. Additionally, more and more people are opting for carbon-neutral energy to power up their homes and businesses.
However, that still leaves the question of which energy source is cheaper and how renewable sources can be made cost-friendly for more people to be able to afford. Today, we will look over the facts regarding cheap electricity and see what the way forward for our world is.
The Reduced Cost of Renewable Energy
A 2020 report from CSIRO, Australia’s national science-based agency, revealed that the cheapest form of electricity in the country is powered through wind and solar. This report took into account the integration costs of these renewable sources of electricity and compared them to the long-term costs of using traditional energy to power up our homes and businesses.
Unfortunately, to date, most of Australia’s energy needs are being fulfilled by fossil fuels. This is a result of people being unaware of how the costs of integrating renewable power systems have decreased, along with limited options available.
For the last few decades, financing entities have displayed renewable energy as a risky business that conjures up massive costs. Since people are simply unable to afford these costs, they stay away from renewable energy sources despite them being a major need of the hour.
However, Forbes reports the worldwide average rate of electricity created through solar power to have dropped by a whopping 26%. Additionally, bioenergy, as well as wind sources, are now 14% cheaper, while hydropower-based energy is down by 12% in cost.
These new statistics clearly show just how cost effective renewable and carbon-neutral energy sources have gotten recently. Even when compared to the well-developed fossil fuel industry, these renewable sources stand on their own and have become the cheaper form of electricity production. The fact that they are better for the environment further adds to their benefit for the Australian citizens.
Major Highlights from the IRENA Report
The findings from CSIRO are also supported by the report published by the International Renewable Energy Agency. The report touches on the growing need to create sustainable pathways for the adoption of renewable sources as sole energy providers for commercial, industrial, and residential use across the globe.
It further promotes the goals of the Paris Agreement and the UN’s Climate Action Summit by highlighting the following points:
- Onshore wind and solar power sources are now less expensive than any fossil fuel option in most countries, even without any additional financial assistance.
- There is a decrease in technology costs which makes renewable sources the sole backbone of any energy decarbonisation efforts to fulfil climate goals.
- Wind and solar energy installations are increasingly undercutting the costs of coal-fired plants. They now require lesser investments than what is needed to just operate these plants.
- Cost predictions show a continuous decrease in renewable power implementation to further encourage various industries to opt for these solutions.
On an ending note, data from the Renewable Global Status Report has shown that over one-fifth of the world’s total electrical power is now generated through renewable sources. We hope to see this trend continue to rise as we battle through the man-made disaster that is climate change.
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