WHY IT’S IMPORTANT

A target was set at the COP28 U.N. climate conference in 2023 to triple the amount of renewables, such as wind and solar, to keep a 1.5 degree Celsius (2.7 Fahrenheit) warming limit this century within reach.

BY THE NUMBERS

Last year, 582 gigawatts of new renewable energy capacity, such as hydropower, solar, wind and geothermal, was added globally. This was nearly 20% higher than in 2023. Around 91% of the utility-scale projects commissioned were more cost effective than fossil fuel alternatives, the report said.

Solar photovoltaic (PV) was 41% cheaper on average than the lowest-cost fossil fuel alternatives, such as gas, while onshore wind projects were 53% cheaper.

The cost of battery energy storage systems has declined by 93% since 2010, the report added.

CONTEXT

The costs of renewable technologies have been decreasing since 2010 due to technological advances and economies of scale.

Continued reductions are expected but challenges in the short term have come from issues such as geopolitical tensions, trade tariffs and bottlenecks in raw material production and procurement, which could temporarily drive up costs, IRENA said.

KEY QUOTE

“Looking at all renewables currently in operation, the avoided fossil fuel costs in 2024 reached up to $467 billion. New renewable power out competes fossil fuels on cost, offering a clear path to affordable, secure, and sustainable energy,” said Francesco La Camera, director general of IRENA.

“However, this progress is not guaranteed. Rising geopolitical tensions, trade tariffs, and material supply constraints threaten to slow the momentum and drive-up costs,” he added.

Reference : https://www.reuters.com/business/energy/around-90-renewables-cheaper-than-fossil-fuels-worldwide-irena-says-2025-07-22/

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New Delhi: India’s renewable energy sector reported a 420 per cent year-on-year growth in capacity addition in June 2025, rising from 1.4 GW last year to 7.3 GW this year, Union Minister for New and Renewable Energy Pralhad Joshi said on Tuesday at the IVCA Renewable Energy Summit 2025 in Mumbai.

The Minister highlighted that India has seen a 4,000 per cent growth in solar energy capacity—rising from 2.82 GW in 2014 to 117 GW in 2025. Wind energy capacity increased from 21 GW to 51.7 GW in the same period, registering a 140 per cent rise.

Cost reductions and policy support driving change
Solar tariffs have declined by 80 per cent—from ₹10.95/unit in 2010–11 to ₹2.15/unit currently. “As a result, even solar with battery storage now costs less than thermal, saving up to ₹2 per unit,” Joshi said.

He noted that 83 per cent of power sector investments in 2024 were directed towards renewables. “We were the largest recipient of global energy development finance, attracting $2.4 billion (₹20,040 crore) for clean energy in a single year,” Joshi said.

FDI inflows and investor returns
Since 2020, foreign direct investment in the sector has crossed ₹1.6 lakh crore ($20 billion), with ₹42,000 crore ($5 billion) in 2023 alone. In Q1 2025, clean energy investment surged 7.7 times year-on-year to $9.8 billion (₹81,700 crore).

“Investors who backed this transition have already seen multifold returns. So should you,” Joshi said, inviting capital participation in the sector.

Green hydrogen and large-scale projects
The ₹19,744 crore National Green Hydrogen Mission is aimed at making India a global hub for green hydrogen production, usage, and export. “Our first hydrogen-powered heavy-duty truck trials are already on the roads,” he added.

Citing major infrastructure projects, Joshi said, “In Gujarat’s Kutch district, we are building what will be the world’s largest renewable energy park—30 GW of solar and wind combined.”

Renewable manufacturing sees rapid expansion
Under the PLI scheme, India’s solar module manufacturing capacity has more than doubled from 39 GW to 91 GW in one year. Solar cell capacity increased from 11 GW to 25 GW.

Among the allocations under the PLI scheme:

1. 17.5 GW of module capacity awarded to six manufacturers (out of 48.3 GW total)
2. 6 GW of cell capacity awarded to two manufacturers (out of 44.9 GW total)
3. 2 GW of ingot-wafer capacity awarded to one manufacturer (out of 37.5 GW total)

Joshi said the country is now aiming to auction 50 GW of renewable capacity every year, including a guaranteed 10 GW of wind power.

Waste-to-energy and sectoral transformation

The minister also mentioned India’s largest waste-to-energy plant in Ahmedabad, which converts 1,000 tonnes of solid waste daily into electricity. “These are examples of how India’s energy transition is not only sustainable but also inclusive, benefiting cities, farmers, and communities,” he said.

Joshi concluded, “Let us join hands to power India’s transformation into a renewable energy superpower, creating long-term value for investors, for our economy, and for the planet.”

Reference : https://energy.economictimes.indiatimes.com/news/renewable/india-adds-7-3-gw-renewable-capacity-in-june-clean-energy-fdi-crosses-1-6-lakh-crore-joshi/122490027?utm_

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A new study by the United Nations Development Programme (UNDP) has revealed that aligning renewable energy goals with broader development policies could lift 193 million people out of extreme poverty by 2060, while unlocking USD 20.4 trillion in cumulative savings for the global economy.

The study, conducted by the United Nations Development Programme (UNDP), University of Denver’s Pardee Institute and Octopus Energy, was set up to explore how time-bound renewable energy targets, backed by coherent policies and financing mechanisms, could unlock triple wins: cutting emissions, boosting economies and delivering real social benefits.
The report simulated three scenarios to assess outcomes for emissions, economic growth, and social progress.
In a business-as-usual scenario, the global energy system remains dependent on fossil fuels, accounting for over 50 per cent of primary energy by 2060.
This trajectory would push global warming to 2.6 °C, exacerbating poverty, malnutrition and lack of access to essential services like electricity, safe water and sanitation.
The second scenario considers accelerated renewable energy deployment aligned with the first Global Stocktake’s call to triple renewable energy and double energy efficiency.
In this future, fossil fuels would make up just 12 per cent of the energy mix by 2060, helping to limit global temperature rise to below 2 degrees Celsius.

But it is the third and most ambitious scenario — where renewables are accelerated alongside investments in health, education, water and food systems — that yields the most transformative outcomes.
In this pathway, universal access to electricity and clean cooking is achieved, 142 million people are saved from malnutrition, and 550 million more people gain access to clean water and sanitation.
“This study shows us that a clean energy future is possible — but we must choose to embed renewable ambition into climate plans linked to inclusive development policies,” said Cassie Flynn, UNDP’s Global Director of Climate Change.

In addition to its social impact, the study estimates the third scenario would generate USD 8.9 trillion in energy efficiency savings and USD 11.5 trillion from declining renewable costs, while boosting global GDP by 21 per cent and raising per capita income by USD 6,000 by 2060.
Octopus Energy founder Greg Jackson highlighted the growth potential that clean energy can unlock.
“Renewables can offer the chance to bring electricity to hundreds of millions of people, improving lives and driving growth,” he said.
With renewable power capacity reaching 4,448 GW in 2025, accounting for over 90 per cent of new power additions and clean energy investments projected to hit a record USD 2.2 trillion, the momentum is strong.

Yet, fossil fuels still dominate, comprising over 70 per cent of the global supply.
In 2024 alone, fossil fuels accounted for more than half of the 2.2 per cent rise in energy demand, and energy efficiency growth halved from previous decades.
“The imperative now falls to global leaders to embrace these strategies and act,” said Jonathan Moyer, Director of the Pardee Institute.
“This research shows it is possible to balance global development with environmental protection while managing the inherent trade-offs,” Moyer said.

Reference : https://economictimes.indiatimes.com/industry/renewables/aligning-renewables-with-development-goals-can-lift-193-million-from-poverty-undp-study/articleshow/122204516.cms

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