As extreme conditions make climate denial increasingly difficult to take seriously, the International Renewable Energy Agency confirms cleaner, carbon-free energy is much cheaper than fossil fuels.
Not only has the latest IRENA report laid out that renewables are less expensive than oil and gas fuels, it also shows that 90% of the large-scale clean energy capacity added in 2025 were cheaper than the lowest price fossil fuel alternatives. This reflects an established pattern of cost differentiation between dirty and ‘clean’ power sources.
Solar photovoltaic was the only type of renewable that had not seen a price decrease since 2024. In comparison, on and off-shore wind both fell. All three sources have seen a marked reduction in costs since 2010, dropping by 89%, 71% and 63% respectively. Meanwhile, natural-gas fired facilities doubled in price due to a shortage in some equipment. Although this is a circumstantial blip, the impact of the US-Iran war is going to exacerbate prices at both production and consumer ends of the market.
‘The decline in renewable energy costs is delivering a powerful economic dividend. For countries that still rely heavily on fossil fuels, every additional megawatt of renewables strengthens economic protection against fuel-price volatility, shielding consumers, businesses and public finances from higher costs,’ said Francesco La Camera, director-general of IRENA. ‘Savings generated by existing renewable assets grow, providing a built-in hedge against future shocks. This energy crisis has shown yet again: expanding renewable capacity is a strategic investment in resilience and competitiveness.’
You can read the full International Renewable Energy Agency report here.
Image: Anna Jiménez Calaf / Unsplash
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