The decreasing cost will remove a major hurdle in the deployment of renewable energy; the upfront investment.
The cost of solar energy technology has gone down 60 per cent in the past two years, Adnan. Z Ameen, Director General of International Renewable Energy, said.
“The cost of wind energy has gone down by 15 to 20 per cent during the same time,” he added.
Conventional energy generation projects do not need upfront investment but a major portion of investment has to be added gradually only.
The decreasing costs will also send a clear and concrete message from the renewable energy industry that it is cheaper, reliable, abundant and clean. “There were certain misconceptions that renewable energy is costly, intermittent, so not reliable,” Ameen said.
It was already late for the renewable energy industry to give a clear signal about its advantages, he said. He said conventional energy industries such as coal, oil and gas have been giving a signal that such sources are abundant, cheap and generate jobs.
About the potential of renewable energy, Ameen said Saudi Arabia alone has the potential to generate four times the global energy demand from renewables. Saudi Arabia, the largest exporter of oil is expected to become an oil importer in the next 25 years due to growing domestic energy consumption, he pointed out. They have started timely initiatives in renewable energy to address the growing energy demand, he said.