Energy prices will drop as wind and solar production increases
ADVERTISEMENTWind and solar projects are on track to account for more than a third of the world's electricity by 2030, a report by the Rocky Mountain Institute (RMI) said on Thursday.
This signals that the energy sector can achieve the change needed to meet global climate goals.
Sultan al-Jaber, president of the next UN climate summit, COP28, earlier this year called for a tripling of renewable energy generation by 2030 to curb greenhouse gas emissions and help reach goals set under the 2015 Paris climate agreement.
Are on track to hit renewable energy goals?
Exponential sector growth means wind and solar projects are predicted to generate at least 33 per cent of global electricity, up from around 12 per cent now. This will lead to a fall in fossil fuel-powered generation and cheaper power, the RMI report showed.
The RMI, a U.S.-based non-profit organisation focused on clean energy, carried out the research in partnership with the Bezos Earth Fund, a $10 billion fund created by Amazon owner Jeff Bezos to help fund solutions to climate change.
The cost of solar power, which is already the cheapest form of electricity production, will fall as low as $20 (€17.80) per megawatt hour (MWh) from around $40 (€35.70) MWh currently, as more projects are deployed and economies of scale improve, the report said.
"The benefit of rapid renewable deployment is greater energy security androcky independence, plus long-term energy price deflation because this is a manufactured technology - the more you install the cheaper it gets," said Kingsmill Bond, Senior Principal at RMI.
