Recent IREA Report Says Renewables May Soon Undercut Fossil Fuel Costs
One of the primary obstacles to greater use of renewable energy platforms is the cost, both to consumers and developers. However, according to a recent report produced by the International Renewable Energy Agency (IREA), renewables are well on their way to matching or undercutting the costs of fossil fuels. The report says that by the year 2020, infrastructure projects that rely on green-energy technologies will be more affordable for developers, reducing the cost of energy for consumers.
Green Energy Moves Past Environmental Advocacy
The cost projections provided by the IREA mean that using green technology is no longer merely about making a positive impact on the environment, rather it will also be about saving money. When developers see the financial benefits of incorporating green technologies in commercial and residential projects, renewable energy will become the norm. As UK Energy and Climate Intelligence Unit analyst Jonathan Marshall said, “the cheaper you install it, the better it is for everyone.”
The UK Could Miss Out on Electricity Savings
The timing of the IREA report is quite opportune as the World Wide Fund for Nature declared that 2017 was a record year in the UK with data from the National Grid showing that renewable energy records were surpassed 13 times. Nevertheless, the UK continues to face challenges that, if left unresolved, will leave it unable to take full advantage of the decrease in renewable energy costs.
The IREA predicts that the biggest gains in savings will be seen in onshore wind and solar energy projects. These two sources alone are expected to generate electricity for around 2p per kilowatt hour by next year, but the UK currently has a subsidy ban on new onshore wind farms. Instead of capitalizing on more competitive prices for renewables, the UK could see its energy bills increase by 1 billion pounds over the next five years. If UK policymakers do not remove this ban as well as other regulations that stifle the advancement of renewable energy resources, businesses and consumers will miss out on the lower electricity costs that will be experienced by the rest of the world.