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Please note!
This fact brief was originally published as an experiment to test the concepts behind fact briefs.
Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.

Is most renewable energy still more expensive than fossil fuels?

By Jacob Alabab-Moser
NO

In 2020, nearly two-thirds (62%) of the renewable power-generation capacity added worldwide had lower electricity costs than the cheapest source of new fossil fuel-fired capacity, according to the International Renewable Energy Agency. “Today, renewables are the cheapest source of power,” said IRENA’s Director-General in June 2021.

Renewable energy costs declined considerably over the past two decades as technologies improved, more suppliers entered the market, and the industry benefited from economies of scale. Between 2010 and 2020, the cost of electricity from utility-scale solar sources fell by 85%.

The International Energy Agency's latest market update stated that while renewable electricity costs have increased due to rising freight and raw-material costs, fossil-fuel electricity costs "have risen at a much faster pace."

When factoring in the social costs of fossil fuels, renewables become even cheaper. A 2021 study found that a true accounting of the health and environmental impacts of fossil fuels "would make many fossil fuelled and nuclear power stations economically unviable." The Solutions Project estimated that a 100% renewable transition in the U.S. would save $742.38 billion and 62,676 lives lost to air pollution per year.

This fact brief is responsive to conversations such as this one.
ABOUT THE CONTRIBUTOR
Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.
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