The trajectory of energy prices is poised for a significant shift as wind and solar production surge forward. Projections from a recent Rocky Mountain Institute (RMI) report unveiled that wind and solar endeavors are on a trajectory to contribute over a third of the world’s electricity by 2030.
This pivotal development underscores the energy sector’s potential to effectuate the necessary transformation in alignment with global climate objectives.
In support of this, Sultan al-Jaber, President of the forthcoming UN climate summit, COP28, echoed the call for a threefold increase in renewable energy generation by 2030 to combat greenhouse gas emissions and fulfill the aspirations outlined in the 2015 Paris Climate Accord.
Anticipated exponential growth within the sector positions wind and solar initiatives to generate a minimum of 33 percent of worldwide electricity, a substantial climb from the current 12 percent.
This is poised to prompt a decline in fossil fuel-driven generation, paving the way for more affordable energy, as corroborated by the RMI report.
Collaborating with the Bezos Earth Fund, a $10 billion initiative established by Amazon’s founder Jeff Bezos to address climate change, the RMI, a U.S.-based non-profit organization, conducted this research.
Even solar power, already renowned as the most cost-effective method of electricity production, is forecasted to plummet to as low as $20 (€17.80) per megawatt-hour (MWh) from the present $40 (€35.70) MWh. This price plummet is attributed to the deployment of additional projects and the subsequent enhancement of economies of scale, according to the report.
Kingsmill Bond, Senior Principal at RMI, highlighted the positive outcomes of swift renewable implementation: amplified energy security, self-sufficiency, and prolonged deflation of energy costs.
This phenomenon results from renewable technology’s inherent manufacturing nature, wherein increased installation begets reduced costs, exemplifying a virtuous cycle of progress.