As concluded in two recent UN reports, the shift towards renewable energy has reached a “positive tipping point”. Already more than 90% of renewable energy capacity is now cheaper than fossil fuel alternatives. UN figures show that solar and wind power are in most cases the cheapest and fastest way to generate energy.

In 2024, the global increase in renewable energy capacity reached 582 gigawatts, almost 20% more than in 2023 and the largest annual rise since records began. In most cases, new energy capacity came from renewable sources. Last year, on almost every continent, renewable energy capacity grew more than capacity derived from fossil fuels.

According to “Seizing the Moment of Opportunity”, a report by several UN agencies, almost three-quarters of the world's electricity generation came from wind, solar and other environmentally friendly sources.

UN Secretary-General A. Guterres: “This shows how far we have come in the ten years since the Paris Agreement.”

Calculations by the International Renewable Energy Agency (IRENA) confirm the UN reports, showing that more than 90% of all new renewable energy sources worldwide generated electricity at a price lower than the cheapest fossil fuel alternative.

To see the effect of renewables, “follow the money”...

Presenting the latest UN reports, A. Guterres stressed that the world stands “at the dawn of a new energy era”. “Fossil fuels are running out of road, and the age of clean energy is beginning. Just follow the money,” he said.

Last year, around 2 trillion US dollars (1.7 trillion euros) was invested in clean energy – 800 billion US dollars (685 billion euros) more than in fossil fuels, and more than 70% more than 10 years ago.

IRENA's latest data show that the three cheapest sources of electricity last year were wind, solar and hydropower. Solar energy is currently 41% cheaper than fossil fuels; not long ago it was four times more expensive. Offshore wind power is currently 53% cheaper and is the most accessible of the new renewable energy sources

The UN chief stressed that emissions and economic growth rose in tandem for decades. In many developed economies, emissions have now peaked while growth continues. In 2023, clean energy sectors drove 10% of global GDP growth and almost 33% of the growth in Europe.

Rising geopolitical tensions, tariffs and raw material shortages

IRENA Director-General Francesco La Camera points out that progress is not entirely guaranteed, as the difficult geopolitical situation, shifting trade tariffs and constraints on raw material supplies threaten to slow the pace of development and push up costs. Although renewable energy costs are expected to keep falling as new technologies mature and supply chains strengthen, geopolitical change – including trade tariffs, obstacles to raw material supplies and shifts in manufacturing dynamics – could slow this process.

In Europe, higher costs are likely to persist because of structural problems such as delays in granting permits for new projects and limited grid capacity.

A. Guterres pointed out that fossil fuels still receive almost nine times more in state consumption subsidies than renewables. Countries that continue to rely on fossil fuels are not protecting their economies but in fact sabotaging them.

F. La Camera adds: “To safeguard the benefits of the renewable energy transition, the world must strengthen international cooperation, ensure open and resilient supply chains and establish stable policy and investment frameworks. This is especially needed in the global South. The shift to renewable energy is irreversible, but its pace and fairness depend on the choices we make.”