Sign in Subscribe
Green technology

Fossil Fuels "Running Out of Road" as Cost of Renewable Energy Drops Sharply

Strategic Insights

— 1 min read

The clean energy future is no longer a promise, but a fact, as renewable energy makes up the bulk of electricity capacity additions globally. According to the UN secretary-general, countries that cling to fossil fuels are not protecting their economies, but sabotaging them. The fossil fuel age is flailing and failing, with clean energy investments outpacing fossil fuels by $800bn last year.

Key Takeaways:

  • Renewable energy made up 92.5% of all new electricity capacity additions in 2024, while fossil fuels accounted for only 7.5%.
  • The clean energy sector accounted for 10% of China's economy and a quarter of GDP growth last year.
  • China's clean-energy exports in 2024 alone would cut annual overseas emissions by 1%.
  • The cost of renewable energy has plummeted over the past 15 years, with over 90% of renewables producing electricity for less than the cost of the cheapest fossil fuel alternative.
  • Solar photovoltaics were 41% cheaper than the lowest-cost fossil fuel alternatives, while onshore wind projects were 53% cheaper.
  • Heavy subsidies provided by governments for fossil fuels create a clear market distortion.
  • Renewable energy is crucial for energy security, and growing energy demand for artificial intelligence is putting intense pressure on systems.

Statistics:

  • Global annual electricity capacity of renewables increased by 2,600 gigawatts between 2015 and 2024, while fossil fuels increased by 640GW.
  • Renewable energy investments outpaced fossil fuels by $800bn last year, totaling $2tn.
  • The international community is heavily reliant on fossil fuels, with around three-quarters of the global population living in countries that are net importers of fossil fuels.
  • Last year was the hottest on record, and the burning of fossil fuels is the biggest contributor to human-induced climate change.
  • Irena reported a 70% increase in clean energy investments over 10 years, with 2024 investments surpassing $2tn.

Sources:

  • UN secretary-general Antonio Guterres
  • Irena (International Renewable Energy Agency) report
  • Carbon Brief analysis
  • International Energy Agency (IEA)
  • World Bank
  • International Monetary Fund (IMF)
  • Organisation for Economic Co-operation and Development (OECD)

Read more