UN Secretary-General António Guterres has declared that the global energy transition has reached a point of no return. As clean energy investments pass $2 trillion in 2024, renewable energy is now more cost-competitive than fossil fuels. Guterres said we have entered the “clean energy age” and must act quickly to build on this progress.
With solar and wind becoming some of the cheapest sources of energy, countries and companies are shifting toward sustainable energy sources at a fast pace.
Are Renewables Really Cheaper Than Fossil Fuels?
Yes—and by a big margin in many regions.
According to a recent UN report, most new renewable energy projects in 2024 are cheaper than even the lowest-cost fossil fuel alternatives. Onshore wind power now averages just 3.4 cents per kilowatt-hour (kWh), while solar photovoltaic (PV) sits around 4.3 cents per kWh. That’s less than what coal or gas costs in most markets.
In Europe, offshore wind projects generated electricity at about $36 per megawatt-hour in 2023. In comparison, gas-fired electricity costs nearly double—around $71 per megawatt-hour. These price differences show how renewables have quickly become more cost-effective.
In fact, over 90% of new renewable energy projects in 2024 are more affordable than fossil fuel-based ones. This is because of better technology, efficient manufacturing, and stronger supply chains.
A BloombergNEF report predicts that the cost of clean power technologies—such as wind, solar, and battery storage—will drop by 2–11% in 2025, setting a new record. The report notes that new solar and wind farms are already cheaper than new coal and gas plants in almost every global market.
However, China’s overcapacity in clean tech manufacturing has led to a wave of protectionist tariffs from other countries to shield domestic markets from low-cost imports. While these trade barriers may temporarily slow cost declines, BNEF still expects the levelized cost of clean electricity to fall by 22–49% by 2035.
The Energy Transition Boosts Jobs and Economic Growth
Going green also means going big on jobs. The UN estimates that clean energy investments could create over 24 million new jobs by 2030. Every $1 million invested in renewable energy brings about three new jobs, mostly in building, installing, and maintaining clean energy systems.
By switching to renewables, countries also reduce their dependence on imported fossil fuels. This helps protect them from global energy price shocks and improves energy security. Guterres referred to renewable energy as “real energy sovereignty.”
Big companies are also stepping in, backing the energy transition and clean power to meet sustainability goals. With solar and wind attracting more than double the investment today compared to 10 years ago, the economic case for renewables is stronger than ever.
A Win for the Planet: How Renewables Help the Environment
Solar and wind power produce zero emissions when generating electricity. This helps replace polluting power sources like coal and oil. The result is that millions of tons of carbon dioxide (CO₂) are kept out of the atmosphere.
Fossil fuels also damage air and water quality. In contrast, clean energy solutions reduce pollution, making our environment healthier and more sustainable. Switching to renewables helps countries meet their climate targets, including those outlined in the Paris Agreement.
If the current pace continues, clean energy could power up to 80% of the world’s electricity by 2030, according to the UN.
Where Are Renewables Growing Fastest?
Asia, Europe, and parts of the Global South are leading the charge. In 2024, renewables made up 92.5% of all new electricity capacity added globally. Countries like Pakistan and Namibia have nearly doubled their energy capacity in just two years—mainly through solar.
Key factors behind this growth include:
Cheaper batteries make clean energy more reliable, storing extra power for use when the sun or wind isn’t available. This also supports electric vehicles and stable power grids.
IEA says, clean energy drew $800 billion more investment than fossil fuels in 2024—a sharp reversal from past trends.
How Will the Market Evolve in the Next Five Years?
Experts expect renewable energy investment to keep growing at about 15% per year through 2029. That growth will be driven by policy support, cleaner technologies, and stronger investor interest. As costs keep falling, more businesses and governments will likely choose clean energy.
Green hydrogen, one of the emerging sectors, promises big changes. The cost to produce hydrogen is expected to drop by half in the next 10 years. This could help decarbonize sectors like shipping, heavy industry, and aviation that are hard to electrify using solar or wind alone.
António Guterres made it clear: “The fossil fuel age is ending—whether anyone likes it or not.” Thus, with this energy transition, the opportunity is real. It’s about clean power, good jobs, and a safe climate for future generations.
