Renewables-dominated grids now competitive with fossil fuels

Power systems dominated by wind and solar generation can reliably deliver electricity at costs comparable to or lower than fossil fuel-based power ones, according to a new report.

The Energy Transitions Commission (ETC) report said electricity is projected to provide up to 70% of global final energy consumption in a decarbonised energy system, up from 20% today and that global electricity demand could potentially triple by 2050.

The report shows that many countries can operate power systems with 70% or more electricity from wind and solar, using proven technologies like battery storage, other energy storage, long-distance transmission, and flexible energy use.

‘Wind belt’ countries – such as the UK, Germany, and Canada – that rely on higher shares of wind generation face higher balancing costs that others, but can still achieve affordable, stable systems through smart policy and innovation.

The report said the collapsing cost of solar PV and batteries makes possible far cheaper and more rapid growth in green electricity supply than seemed feasible 10 years ago.

“But wind belt countries can also achieve cost-effective decarbonisation by leading in offshore wind, long-duration storage, and grid innovation." said Adair Turner, Chair of the ETC.