Core Insights - Renewable energy is not only cost-competitive compared to fossil fuels but also reduces dependence on international fuel markets and enhances energy security [1][2] - The business case for renewable energy is stronger than ever, driven by technological advancements and improved supply chains, although short-term challenges remain [2][5] Cost Competitiveness - In 2024, solar photovoltaic power is expected to be 41% cheaper than the lowest-cost fossil fuel electricity, while onshore wind projects will be 53% cheaper [1] - Onshore wind remains the most affordable new renewable energy source at $0.034 per kilowatt-hour, followed by solar photovoltaic at $0.043 per kilowatt-hour [1] - The addition of 582 gigawatts of new renewable energy capacity in 2024 is projected to save approximately $57 billion in fossil fuel costs [1] Structural Challenges - Integration costs are becoming a new constraint for renewable energy deployment, particularly due to grid connection bottlenecks and slow approval processes [3] - Financing costs are a critical factor in project feasibility, with high capital costs significantly increasing the levelized cost of electricity (LCOE) in many developing countries [3] - The cost structure for onshore wind projects differs significantly between Europe and Africa, with European projects driven mainly by capital expenditures, while African projects face higher financing costs [3] Technological Advancements - Battery storage systems have seen a 93% cost reduction since 2010, with utility-scale storage systems expected to reach $192 per kilowatt-hour by 2024 [3] - Digital technologies and hybrid systems combining solar, wind, and battery storage are becoming essential for integrating intermittent renewable energy [4] Policy and Investment Framework - A stable and predictable revenue framework is crucial for reducing investment risks and attracting capital in both mature and emerging markets [2][5] - International cooperation is necessary to ensure open and resilient supply chains and to establish stable policy and investment frameworks, especially in the Global South [5]

Core Insights - Renewable energy is not only cost-competitive compared to fossil fuels but also reduces dependence on international fuel markets and enhances energy security [1][2][5] - The International Renewable Energy Agency (IRENA) reports that renewable energy maintains a leading cost advantage in the global electricity market, driven by technological innovation, competitive supply chains, and economies of scale [1][2] Cost Competitiveness - In 2024, solar photovoltaic power is expected to be 41% cheaper than the lowest-cost fossil fuel electricity, while onshore wind projects will be 53% cheaper [1] - Onshore wind remains the most affordable new renewable energy source at $0.034 per kilowatt-hour, followed by solar photovoltaic at $0.043 per kilowatt-hour [1] - The addition of 582 gigawatts of new renewable energy capacity in 2024 is projected to save approximately $57 billion in fossil fuel costs [1] Investment and Structural Challenges - Geopolitical changes, raw material shortages, and evolving manufacturing conditions pose short-term challenges that may temporarily increase costs [2] - Stable and predictable revenue frameworks are crucial for reducing investment risks and attracting capital, especially in both mature and emerging markets [2][3] - Financing costs significantly impact project feasibility, particularly in developing countries where high capital costs elevate the levelized cost of electricity (LCOE) [3] Technological Advancements - Battery storage systems have seen a 93% cost reduction since 2010, with utility-scale storage systems expected to reach $192 per kilowatt-hour by 2024 [3] - Digital technologies and hybrid systems combining solar, wind, and battery storage are becoming essential for integrating intermittent renewable energy [4] Future Outlook - The total savings from all operational renewable energy projects in 2024 is estimated to reach $467 billion in avoided fossil fuel costs [5] - The transition to renewable energy is irreversible, but its pace and equity depend on current decisions regarding international cooperation and investment frameworks [5]