Caspian Energy (CE): In conditions of high oil and gas prices, and therefore high market demand for them, doesn’t this mean that renewable energy sources, for all their importance, have suffered a complete commercial collapse in the “battle for markets”?
Francesco La Camera, Director-General of the International Renewable Energy Agency: “On the contrary, we are seeing unprecedented demand for renewables. Despite global uncertainties, renewable energy continues to expand steadily and is well above the long-term trend. The share in total capacity expansion reached a new record of 81% last year. Renewables are cost-competitive, while fossil fuels are becoming increasingly uneconomic, and there is an increased risk of stranded assets.
IRENA’s new costs reports shows how economically viable new renewable power generation has become. Two-thirds of newly installed renewable power in 2021 had lower costs than the world’s cheapest coal-fired option in G20 countries. We estimate that, given the current high fossil fuel prices, renewable power added in 2021 will create savings of USD 55 billion in global energy generation costs in 2022. The drive for renewables is unstoppable, but we must increase the pace of the change and scale up activities.”
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