You should be happy and surprised to know that using solar panels and wind turbines to generate electricity is cheaper than coal and fossil fuel electricity generation.

China's leading renewable energy think tank gave the most bullish forecast yet for its renewable power build-out this year as it tries to meet climate goals and reduce foreign fuel dependency. China is set to install a record 156 gigawatts of wind turbines and solar panels this year, said Yi Yuechun, vice dean of the China Renewable Energy Engineering Institute, a think tank that supports the National Energy Administration. That would be a 25% jump from the previous record set last year, according to Bloomberg NEF data. 

Renewable Boom: China is set to add record wind and solar this year

Costs for renewables continued to fall in 2021 as supply chain challenges and rising commodity prices have yet to show their full impact on project costs. The cost of electricity from onshore wind fell by 15%, offshore wind by 13% and solar PV by 13% compared to 2020.

Renewable Power Generation Costs in 2021, published by the International Renewable Energy Agency (IRENA) today, shows that almost two-thirds or 163 gigawatts (GW) of newly installed renewable power in 2021 had lower costs than the world’s cheapest coal-fired option in the G20. IRENA estimates that, given the current high fossil fuel prices, the renewable power added in 2021 saves around USD 55 billion from global energy generation costs in 2022.

IRENA’s new report confirms the critical role that cost-competitive renewables play in addressing today’s energy and climate emergencies by accelerating the transition in line with the 1.5°C warming limit and the Paris Agreement goals. Solar and wind energy, with their relatively short project lead times, represent vital planks in countries’ efforts to swiftly reduce, and eventually phase out, fossil fuels and limit the macroeconomic damages they cause in pursuit of net zero.

“Renewables are by far the cheapest form of power today,” Francesco La Camera, Director-General of IRENA said. “2022 is a stark example of just how economically viable new renewable power generation has become.

Moreover, due to the Ukraine-Russia conflict, gas and petroleum prices have shot through the roof.