Since 2010, renewable energy is much cheaper

A BloombergNEF analysis indicates that since 2010 solar energy has been reduced by 85%, and wind energy by 50%. A promise to increase your adoption.

That renewable energies have increasingly affordable prices is nothing new. But the quantification of this cheaper is always in the air. A new study by the analyst entity BloombergNEF shows revealing figures to answer this question.

The cost of wind energy is 50% lower than in 2010. Taking this same date as a reference, solar energy has been reduced by 85%. According to BloombergNEF, this price decline places solar and wind plants as a cheaper option than coal and gas plants in two-thirds of the world.

After decades of subsidies, the renewable energy sector has gained momentum. Spain is the country that stands out most in the construction of solar plants without subsidies. Italy and Portugal are also among the first countries in this ranking.

The lowering of solar panels in a decade has been spectacular. The causes are in a series of circumstances. The renewables industry has expanded by government incentives, but also by the consolidation of a supply and production chain, as well as the contribution of constant research, from the private and academic sectors, to the improvement of products.

In spite of everything, solar and wind power only boost 7% of the electricity in the world. At this time the generation of electricity and heating accounts for 25% of greenhouse gases.

A more plausible renewable future

It is becoming cheaper to build solar or wind plants. This seems pretty clear. What there are still doubts about is whether the ribbon has been passed. If renewable energies are – or when they will be – cheaper than fossil fuels.

cover energy demand with renewable

Given this doubt, which is ultimately the key to energy conversion, we must remember the estimate made by Morgan Stanley. In a report in mid-2017, the bank estimated that in 2020 renewable energy would be the cheapest type of energy.

This document highlighted the decrease in the prices of solar panels, which had increased their adoption. This, in turn, made the materials and production cheaper due to the mass production. Also the wind turbine blades had grown in size and, therefore, in energy absorption. The result was a rising price decline. A trend that coincides fully with the conclusions of BloombergNEF.

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