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A recent report by the International Renewable Energy Agency (IRENA) reveals that renewable energies played a crucial role in the global electricity economy in 2022. In that year, the global electricity sector made spectacular savings of $520 billion thanks to the growing use of renewable energies. This substantial saving stems from the increased competitiveness of renewable energies, stimulated by the crisis in fossil fuel prices.
By 2022, no less than 86% of newly installed renewable capacity, or 187 gigawatts, had a lower production cost than electricity from fossil fuels. This trend confirms the relevance and viability of renewable energies in our global energy landscape. IRENA's report, "Renewable Power Generation Costs in 2022", highlights the significant impact of renewables in reducing overall fuel costs in the electricity sector.
In addition to these direct savings, it is essential to emphasize that the reduction in CO2 emissions and local air pollution translates into significant economic benefits. The massive deployment of renewable energies over the last two decades has helped to minimize the economic impact of rising fossil fuel prices in 2022. This has made the world's economies more resilient in the face of this crisis, even without recourse to massive public funding.
The report reaffirms the essential role of cost-competitive renewable energies in resolving the current energy and climate crises. They accelerate the transition to a future in line with the objective of limiting global warming to 1.5°C. Renewable energies play a central role in countries' efforts to achieve net zero emissions, reduce their dependence on fossil fuels, and mitigate the associated macroeconomic consequences.
IRENA's Director General, Francesco La Camera, emphasizes that the year 2022 marks a decisive turning point in the deployment of renewable energies. Their cost-competitiveness is now stronger than ever, despite the continuing rise in the cost of raw materials and equipment worldwide. The need to add an average of 1,000 gigawatts of renewable energy per year by 2030 to meet the target of limiting global warming to 1.5°C is pressing, more than three times the 2022 level.
Over the last 13 to 15 years, the production costs of renewable energy, particularly solar and wind power, have fallen considerably. Between 2010 and 2022, these energies became competitive with fossil fuels, even without financial support. The report concludes that the expected rise in fossil fuel prices will consolidate the trend for renewable energy generation to become the cheapest source for new installations, even competing with existing fossil fuel producers. Renewable energies offer consumers protection against fluctuations in fossil fuel prices.