Fossil fuel sources still account for the majority of global energy consumption, but renewables are not far off. The share of global electricity from renewables grew from 18% in 2009 to nearly 28% in 2020.
Renewable energy sources follow learning curves or Wright’s Law—they become cheaper by a constant percentage for every doubling of installed capacity. Therefore, the increasing adoption of clean energy has driven down the cost of electricity from new renewable power plants.
Solar PV and onshore wind power plants have seen the most notable cost decreases over the last decade. Furthermore, the price of electricity from gas-powered plants has declined mainly as a result of falling gas prices since their peak in 2008.
By contrast, the price of electricity from coal has stayed roughly the same with a 1% increase. Moreover, nuclear-powered electricity has become 33% more expensive due to increased regulations and the lack of new reactors.
Given the rate at which the cost of renewable energy is falling, it’s only a matter of time before renewables become the primary source of our electricity.
Several countries have committed to achieving net-zero carbon emissions by 2050, and as a result, renewable energy is projected to account for more than half of the world’s electricity generation by 2050.