By several important metrics, renewables are already much less costly than fossil fuels. Fossil fuels contribute to an estimated $4.6 trillion in annual pollution costs and another report states that $5 trillion — 6.5 percent of world GDP — is spent on annual fossil fuel subsidies. Also, if the world keeps burning high levels of fossil fuels for decades, there probably won’t be much of a civilization remaining, and that’s the biggest, priciest cost of all.
A new report showing that renewable prices may soon out-compete fossil fuels offers just the latest evidence to bolster demands that oil, gas, and coal to be left “in the ground.”
The cost analysis from the International Renewable Energy Agency (IRENA) for delivering electricity was presented Saturday at the opening of the organization’s Eighth Assembly in Abu Dhabi.
Prices are already falling for renewable power generation, the publication notes, and says that wind and solar power will be on par with—or even cheaper than—the cost of fossil fuel-generated electricity by 2020.
Among the “remarkable” price reductions has been for utility-scale solar PV which have dropped 73 percent since 2010, the report says.