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Fossil fuels dominate the world’s electricity supply because, until recently, fossil fuel electricity was significantly cheaper than renewable ene]rgy. Over the last decade, this has shifted dramatically. Renewable energy is becoming increasingly more affordable in the majority of the world than new fossil-fuel-based electricity capacity.
You can check people’s reviews on the increasing renewable energy on Britainreviews.co.uk, a UK reliable review platform. Renewable Energy Costs in recent time demonstrates that more than half of the renewable capacity added in 2020 generated electricity at a lower cost than the cheapest new coal plants. Even Calor gas suppliers’ energy suppliers demonstrate this as well.
According to the report, new renewable energy projects are becoming more competitive with existing coal-fired power plants. On average, the cost of new solar photovoltaic (PV) and onshore wind energy is less than the cost of maintaining many existing coal plants. Auction results indicate that this trend is accelerating – reinforcing the case for coal’s complete phase-out. According to the report, an existing coal capacity of up to 1200 gigawatts (GW) could cost more to operate next year than new utility-scale solar PV.
Renewable energy costs have reduced significantly over the last decade due to technological advancements, economies of scale, more competitive supply chains, and increased developer experience. Since 2010, utility-scale solar photovoltaic (PV) energy has seen the most significant cost reductions of 82%, followed by 47% for concentrating solar power (CSP), 39% for onshore wind, and 29% offshore wind.
The costs of solar and wind energy technologies have also continued to fall year after year. The cost of electricity generated by utility-scale solar photovoltaic (PV) systems decreased 13% in 2020, to an average of 6.8 cents (USD 0.068) per kilowatt-hour on a global scale (kWh). Onshore and offshore wind prices decreased by approximately 9%, reaching USD 0.053/kWh and USD 0.115/kWh, respectively.
Why Is Renewable Energy Less Expensive Than Non-Renewable Energy?
In two-thirds of the world, renewable energy sources are more affordable than carbon-based electricity. This transition represents a significant victory for renewable energy. The following reasons demonstrate why renewable energy has become more affordable in recent years.
Cutting-edge Technology
As more people adopted or made investments in solar and wind energy, they helped fund research in these fields. Additional research has resulted in the advancement of more efficient technology, which has resulted in a reduction in the cost of renewable energy. Wind and solar energy are technologies, not fuels, which will become more affordable as science advances.
Renewable energy technologies must be resilient due to the possibility of product failure due to environmental factors such as solar radiation. Balancing resilience and efficiency was previously tricky for older machines, but that is no longer the case. Green technology of the modern era is more affordable to manufacture, more durable, and more efficient at capturing energy.
While advancements in fossil fuel technologies may increase fuel efficiency, which lowers their cost, this is not the only factor. Even when utilizing fossil fuels in the most cost-effective manner possible, users must still purchase fuel. Because no government or organization controls sunlight or wind availability, advancements in green technology have a more significant impact.
Market Volatility
The fossil fuel industry experiences market volatility that the sustainable energy industry does not. In comparison to renewable energy, fossil fuels are not always more affordable over time. These energy sources are scarce, and various companies and governments influence their availability, resulting in a volatile market.
Prices of crude oil and coal have risen significantly in recent decades. By contrast, the cost of renewable energy continues to fall. By and large, fossil fuels are becoming more expensive, while renewable energy sources become more affordable.
Not all fossil fuels are prohibitively expensive. Although crude oil prices have fallen recently, they will not stay this low indefinitely. Unlike wind and solar energy, if historical trends are any indication, the price will eventually rise again.