Renewables Now Cheaper Than Fossil Fuels in Over 90% of New Projects, IRENA Finds

A recent report from the International Renewable Energy Agency (IRENA) has revealed that over 90% of all large-scale renewable energy projects added in 2025 were cheaper than the most affordable fossil fuels. This milestone underscores the accelerating shift toward clean energy and highlights the diminishing cost advantage of traditional power sources.

According to IRENA's findings, the cost of electricity from solar and wind has continued to decline, making renewables increasingly competitive without subsidies. The report notes that the global weighted-average levelized cost of electricity from utility-scale solar photovoltaics fell by 13% year-on-year, while onshore wind costs dropped by 15%. These reductions have pushed renewable energy costs below the marginal cost of coal and natural gas plants in many regions.

The implications are significant for energy markets and policy. As renewables become the cheaper option, they are expected to attract more investment and accelerate the retirement of fossil fuel assets. Analysts at the International Energy Agency have previously stated that solar and wind are now the cheapest sources of new electricity generation in countries accounting for over 80% of global power demand.

This trend is also benefiting companies that specialize in renewable energy technologies and energy storage. For instance, Turbo Energy S.A. (NASDAQ: TURB) has been recognized for its role in advancing solar energy solutions, particularly in the residential and commercial sectors. The company's innovative products are helping to integrate solar power more effectively into the grid, addressing intermittency issues and enabling higher penetration of renewables.

The IRENA report also highlights that renewables are not only cheaper but also contribute to energy security and environmental goals. By reducing reliance on imported fossil fuels, countries can improve their trade balances and reduce exposure to price volatility. Moreover, the transition to renewables is critical for meeting global climate targets under the Paris Agreement.

Despite the positive outlook, challenges remain. Grid infrastructure, storage capacity, and regulatory frameworks need to be upgraded to handle the increasing share of variable renewable energy. However, the cost competitiveness of renewables provides a strong economic impetus for such investments.

In summary, the IRENA report confirms that the era of cheap renewable energy is here, and it is reshaping the global energy landscape. The economic case for renewables has never been stronger, and this trend is expected to continue as technology advances and deployment scales up.