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 cost competitiveness of renewables and signals a fundamental shift in global energy markets. The findings highlight how solar and wind power, in particular, have become the most economical options for new electricity generation, even without subsidies.
The IRENA report, which analyzes data from thousands of projects worldwide, found that the cost of electricity from utility-scale solar photovoltaics (PV) fell by 13% year-on-year in 2024, while onshore wind costs dropped by 4%. Offshore wind also saw significant reductions, with costs declining by 10%. These trends have made renewables the default choice for new power plants in many regions, from Europe to Asia and the Americas. The report notes that the global weighted-average levelized cost of electricity (LCOE) from solar PV is now 29% lower than the cheapest fossil fuel alternative.
This cost advantage is driving record deployment of renewable energy capacity. According to IRENA, global renewable energy additions reached 560 gigawatts (GW) in 2025, a 20% increase from the previous year. Solar PV accounted for the largest share, with 350 GW installed, followed by wind power at 150 GW. The report emphasizes that this growth is not only driven by environmental policies but also by pure economic rationale: renewables offer lower electricity costs and price stability compared to volatile fossil fuels.
The implications of this trend are profound for the energy sector and the broader economy. As renewables become cheaper, they are expected to accelerate the retirement of coal and natural gas plants, reducing greenhouse gas emissions and improving air quality. The report also highlights the role of innovative companies in driving down costs. For instance, GreenEnergyStocks notes that entities like Turbo Energy S.A. (NASDAQ: TURB) are contributing to this transformation through advancements in energy storage and grid integration technologies. These innovations are critical for managing the intermittency of solar and wind power and ensuring a stable electricity supply.
Despite the positive outlook, the report warns that the pace of renewable deployment must triple by 2030 to meet global climate targets. Challenges remain, including grid infrastructure bottlenecks, permitting delays, and the need for massive investments in storage and transmission. However, the cost competitiveness of renewables provides a strong foundation for scaling up. As more countries and corporations commit to net-zero emissions, the economic case for renewables will only strengthen.
In conclusion, the IRENA report confirms that the energy transition is not only environmentally necessary but also economically advantageous. With over 90% of new renewables undercutting fossil fuels, the era of cheap clean energy has arrived, reshaping the global energy landscape and offering a viable path to a sustainable future.
