Sources of renewable and clean energy such as solar and wind power are now cheaper than heavily polluting fossil fuels in dozens of countries, according to a recent report by the World Economic Forum.
In more than 30 countries, including Chile, Mexico, Brazil and Australia, solar and wind power is now the same price or cheaper than fossil fuels and around the world, in what the report refers to as “grid parity.”
It is also expected that based on current trends, around two-thirds of the world will reach grid parity in the next few years. The report cited technological advances in renewable energy such as increased battery storage, leading to “renewable energy attractiveness” and price drops.
The lowering cost of solar and wind power is attracting more investors with more plants being built, as well as more and more people installing renewable energy in their homes.
The rising costs of traditional electricity from fossil fuels are seen to only make renewable energy increasingly cheaper. Within the next decades, the price of solar power is estimated to fall to half the price of electricity derived from coal or natural gas.
According to the World Economic Forum’s Michael Drexler, renewable energy has now reached an important “tipping point” to help reserve the threats of global warming, where renewable energy is seen as a profitable industry.
“Solar and wind have just become very competitive, and costs continue to fall. It is not only a commercially viable option, but an outright compelling investment opportunity with long-term, stable, inflation-protected returns,” said Drexler.