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Submission: On May 03 via api from CH — Scanned from DE
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Powered by Cookiebot * Consent * Details * [#IABV2SETTINGS#] * About THIS WEBSITE USES COOKIES The World Economic Forum uses necessary cookies to make our site work. We would also like to set optional "marketing" cookies to personalise content and ads and “performance” cookies to improve the website. Consent Selection Necessary Preferences Performance Marketing Show details Necessary 36 Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies. Acast 1 Learn more about this provider AcastLangThis cookie is used to determine the preferred language of the visitor and sets the language accordingly on the website, if possible. 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Expiry: 1 dayType: HTTP OECD 3 Learn more about this provider __qcaCollects data on the user's visits to the website, such as the number of visits, average time spent on the website and what pages have been loaded with the purpose of generating reports for optimising the website content. Expiry: PersistentType: HTML context_historyPending Expiry: SessionType: HTML qcSesCollects data on the user's visits to the website, such as the number of visits, average time spent on the website and what pages have been loaded with the purpose of generating reports for optimising the website content. Expiry: SessionType: HTML Our World Data 3 Learn more about this provider amp_#Registers statistical data on users' behaviour on the website. Used for internal analytics by the website operator. Expiry: PersistentType: HTML amplitude_unsent_#Used in context with the website’s pop-up questionnaires and messengering. The data is used for statistical or marketing purposes. Expiry: PersistentType: HTML amplitude_unsent_identify_#Used in context with the website’s pop-up questionnaires and messengering. The data is used for statistical or marketing purposes. Expiry: PersistentType: HTML Parse.ly 2 Learn more about this provider _parsely_sessionThis cookie is used to collect data on visitor behavior on the website. Expiry: 1 dayType: HTTP _parsely_visitorThis cookie is used to determine if the visitor has visited the website before, or if it is a new visitor on the website. Expiry: 13 monthsType: HTTP Powr 3 Learn more about this provider ahoy_unique_#Registers statistical data on users' behaviour on the website. Used for internal analytics by the website operator. Expiry: 1 dayType: HTTP ahoy_visitRegisters statistical data on users' behaviour on the website. Used for internal analytics by the website operator. Expiry: 1 dayType: HTTP ahoy_visitorRegisters statistical data on users' behaviour on the website. Used for internal analytics by the website operator. Expiry: 399 daysType: HTTP Sli.do 2 Learn more about this provider _persistenceTestPending Expiry: 1 yearType: HTTP Slido.EventAuthTokensPending Expiry: 1 yearType: HTTP Soundcloud 1 Learn more about this provider WIDGET::local::assignmentsUsed by audio-platform SoundCloud to implement, measure and improve their embedded content/service on the website - The collection of data also includes visitors’ interaction with embedded content/service. This can be used for statistics or marketing purposes. Expiry: PersistentType: HTML Twitter Inc. 1 Learn more about this provider personalization_idThis cookie is set by Twitter - The cookie allows the visitor to share content from the website onto their Twitter profile. Expiry: 399 daysType: HTTP UserReport 1 Learn more about this provider __ur_dcCollects information of the user's movement and demographical data via the UserReports questionnaire tool. Expiry: 1 yearType: HTTP VWO 3 Learn more about this provider l.gifThis cookie is used by the website’s operator in context with multi-variate testing. This is a tool used to combine or change content on the website. This allows the website to find the best variation/edition of the site. Expiry: SessionType: Pixel _vis_opt_exp_#_combiUsed by Visual Website Optimizer to ensure that the same user interface variant is displayed for each visit, if the user is participating in a design experiment. Expiry: 99 daysType: HTTP _vwo_nls_q_#VWO cookie to capture test results Expiry: PersistentType: HTML World Economic Forum 24 Learn more about this provider __utma [x2]Collects data on the number of times a user has visited the website as well as dates for the first and most recent visit. Used by Google Analytics. Expiry: 399 daysType: HTTP __utmb [x2]Registers a timestamp with the exact time of when the user accessed the website. 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Expiry: PersistentType: HTML _chartbeat4Used by the web analytics company Chartbeat to register whether the user has visited the website before. Expiry: 1 dayType: HTTP _chartbeat4_expiresUsed by the web analytics company Chartbeat to register whether the user has visited the website before. Expiry: PersistentType: HTML _v__cb_cpCollects data such as visitors' IP address, geographical location and website navigation - This information is used for internal optimization and statistics for the website's operator. Expiry: PersistentType: HTML _v__cb_cpCollects data such as visitors' IP address, geographical location and website navigation - This information is used for internal optimization and statistics for the website's operator. Expiry: 1 dayType: HTTP _v__cb_cp_expiresContains the expiry-date for the cookie with corresponding name. 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Expiry: PersistentType: HTML _cb_svrefThis cookie is used to collect information on a visitor. This information will become an ID string with information on a specific visitor – ID information strings can be used to target groups with similar preferences, or can be used by third-party domains or ad-exchanges. Expiry: 1 dayType: HTTP _cb_svref_expiresThis cookie is used in context with HTML local storage, this sets an expiry date/time for the _cb_sverf, which makes it function like a cookie. Expiry: PersistentType: HTML _chartbeat2Used by the web analytics company Chartbeat to register whether the user has visited the website before. Expiry: PersistentType: HTML _chartbeat2Used by the web analytics company Chartbeat to register whether the user has visited the website before. Expiry: 1 yearType: HTTP _chartbeat2_expiresUsed by the web analytics company Chartbeat to register whether the user has visited the website before. Expiry: PersistentType: HTML Marketing 27 Marketing cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers. Adform 2 Learn more about this provider CUsed to check if the user's browser supports cookies. Expiry: 29 daysType: HTTP uidRegisters a unique user ID that recognises the user's browser when visiting websites that use the same ad network. The purpose is to optimise display of ads based on the user's movements and various ad providers' bids for displaying user ads. Expiry: 2 monthsType: HTTP Dailymotion 2 Learn more about this provider tsThis cookie is necessary for the PayPal login-function on the website. 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Expiry: 6 monthsType: HTTP _gcl_auUsed by Google AdSense for experimenting with advertisement efficiency across websites using their services. Expiry: 3 monthsType: HTTP Meta Platforms, Inc. 1 Learn more about this provider frUsed by Facebook to deliver a series of advertisement products such as real time bidding from third party advertisers. Expiry: 3 monthsType: HTTP Parse.ly 1 Learn more about this provider pxRegisters anonymised user data, such as IP address, geographical location, visited websites, and what ads the user has clicked, with the purpose of optimising ad display based on the user's movement on websites that use the same ad network. Expiry: SessionType: Pixel Quantcast 1 Learn more about this provider mcCollects data on the user's visits to the website, such as what pages have been loaded. The registered data is used for targeted ads. Expiry: 13 monthsType: HTTP Sli.do 1 Learn more about this provider NRBA_SESSION_IDCollects user data through quiz/survey-like content. This allows the website to promote relevant products or services. Expiry: SessionType: HTML Spotify 2 Learn more about this provider sp_landingUsed to implement audio-content from Spotify on the website. Can also be used to register user interaction and preferences in context with audio-content - This can serve statistics and marketing purposes. Expiry: 1 dayType: HTTP sp_tUsed to implement audio-content from Spotify on the website. Can also be used to register user interaction and preferences in context with audio-content - This can serve statistics and marketing purposes. Expiry: 1 yearType: HTTP Twitter Inc. 2 Learn more about this provider muc_adsCollects data on user behaviour and interaction in order to optimize the website and make advertisement on the website more relevant. Expiry: 399 daysType: HTTP RichHistoryCollects data on visitors' preferences and behaviour on the website - This information is used make content and advertisement more relevant to the specific visitor. 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You can change your preferences at any time or withdraw your consent by clicking on “Change your consent” on the Cookie Declaration page. Do not sell or share my personal information Reject cookies Allow selected cookies Cookie settings Accept all cookies Powered by Cookiebot by Usercentrics Join usSign in SDG 13: Climate Action RENEWABLE ENERGY IS CHEAPER THAN PREVIOUSLY THOUGHT, SAYS A NEW REPORT - AND COULD BE A GAMECHANGER IN THE CLIMATE CHANGE BATTLE Oct 18, 2021 Wind turbines, which act as a renewable source of energy, used to produce electricity. Image: Thomas Richter/Unsplash JOHNNY WOOD Writer, Forum Agenda SHARE: * * * * * Our Impact What's the World Economic Forum doing to accelerate action on SDG 13: Climate Action? The Big Picture EXPLORE AND MONITOR HOW SDG 13: CLIMATE ACTION IS AFFECTING ECONOMIES, INDUSTRIES AND GLOBAL ISSUES Crowdsource Innovation GET INVOLVED WITH OUR CROWDSOURCED DIGITAL PLATFORM TO DELIVER IMPACT AT SCALE STAY UP TO DATE: SDG 13: CLIMATE ACTION Follow This article is part of: Forum COP26 Live Listen to the article 9 min listen * Renewable energy prices have fallen far more quickl than the industry anticipated, says a new report. * And they are fast becoming cheaper than fossil fuels. * A rapid transition to emissions-free ‘green’ energy could save many trillions of dollars in energy costs - and help combat climate change. The global energy sector has an impressive record of scaling-up renewables like wind and solar – but it is not so good at predicting future price changes of the clean energy these renewables produce, according to a new report. Researchers at the University of Oxford’s Institute of New Economic Thinking suggest early pricing prediction models have consistently underestimated both how far the costs of renewable energy sources might fall, and the benefits of an accelerated switch to clean energy. HAVE YOU READ? * RENEWABLES WERE THE WORLD’S CHEAPEST SOURCE OF ENERGY IN 2020, NEW REPORT SHOWS * RENEWABLE ENERGY COULD POWER THE WORLD BY 2050. HERE’S WHAT THAT FUTURE MIGHT LOOK LIKE * EXPLAINED: WHY RENEWABLES BECAME SO CHEAP SO FAST Costs and projection of costs of renewable energy from 1980-2040. Image: INET Solar power is a good example of renewable energy. As the chart above shows, price forecasts in the International Energy Agency’s (IEA) World Energy Outlook reports consistently underestimate the real-world fall in solar energy prices. Early renewable energy price forecasts failed to account for the substantial infrastructure cost improvements of technologies like solar photovoltaic installations and wind turbines, the report notes. Annual solar energy prices were forecast to fall 2.6% on average in the decade following 2010, for example, with all forecasts predicting a less than 6% price reduction. Discover What's the World Economic Forum doing about the transition to clean energy? Show more Moving to clean energy is key to combating climate change, yet in the past five years, the energy transition has stagnated. Energy consumption and production contribute to two-thirds of global emissions, and 81% of the global energy system is still based on fossil fuels, the same percentage as 30 years ago. Plus, improvements in the energy intensity of the global economy (the amount of energy used per unit of economic activity) are slowing. In 2018 energy intensity improved by 1.2%, the slowest rate since 2010. Effective policies, private-sector action and public-private cooperation are needed to create a more inclusive, sustainable, affordable and secure global energy system. Benchmarking progress is essential to a successful transition. The World Economic Forum’s Energy Transition Index, which ranks 115 economies on how well they balance energy security and access with environmental sustainability and affordability, shows that the biggest challenge facing energy transition is the lack of readiness among the world’s largest emitters, including US, China, India and Russia. The 10 countries that score the highest in terms of readiness account for only 2.6% of global annual emissions. To future-proof the global energy system, the Forum’s Shaping the Future of Energy and Materials Platform is working on initiatives including, Systemic Efficiency, Innovation and Clean Energy and the Global Battery Alliance to encourage and enable innovative energy investments, technologies and solutions. Additionally, the Mission Possible Platform (MPP) is working to assemble public and private partners to further the industry transition to set heavy industry and mobility sectors on the pathway towards net-zero emissions. MPP is an initiative created by the World Economic Forum and the Energy Transitions Commission. Is your organisation interested in working with the World Economic Forum? Find out more here. But solar prices fell 15% – more than five times the predicted annual rate – during this period, which could have serious implications for investment and policy decisions based on these misleading predictions. FORECASTING A RENEWABLE FUTURE The study analyzed past and present data from industry bodies like the International Renewable Energy Agency (IRENA) and the IEA, together with current technological developments in renewables, to predict the future price trends of more than 50 clean energy technologies. The findings show that compared to continuing with today’s carbon-intensive, fossil-fuel-based system, a rapid transition to emissions-free ‘green’ energy could produce overall net savings of many trillions of dollars. And that’s without considering the impact of climate damage or the positive co-benefits of climate policy. Technological innovation has continued to help bring down the cost of some renewables; a fact which earlier price prediction models overlooked, according to Matthew Ives, a senior researcher at the Oxford Martin Post-Carbon Transition Programme, and co-author of the report. “They’ve been getting these forecasts wrong for quite some time,” he told Ars Technica. “You can see we’ve consistently broken through those forecasts again and again.” THE COST OF SUSTAINABILITY Solar energy was first used to supply electricity to satellites in space. Since coming down to Earth, design and manufacturing innovation, supply chain advances and mass adoption of sustainable energy have seen the costs of this and many other renewable technologies tumble. Renewable energy cycle. Image: Our World in Data The energy transition has increased both demand and application of sustainable energy sources like solar, offshore and onshore wind. Scaled up, these technologies can create a cycle where greater deployment leads to even lower prices, prompting increased demand. Renewable energy prices. Image: Our World in Data Innovations that reduce the price of manufacturing solar panels and wind turbines also reduce the cost of the electricity they produce when these technologies operate at scale – but this hasn’t happened to the same extent with fossil fuels like coal. In 2010, the price of one megawatt hour (MWh) – a weighted average cost of electricity – of solar electricity was $378, which fell to $68/MWh in 2019 – a more than five-fold decrease in the cost of solar energy. Offshore and onshore wind also saw dramatic price reductions. Despite being the world’s largest source of electricity, over the same period, the global price of power from new coal fell from $111 to just $109. While the price of solar fell 89% and wind power fell 70%, the cost of electricity from coal saw a comparatively slight 2% reduction. SO WILL THE PRICE OF RENEWABLE ENERGY CONTINUE TO FALL? While nobody can accurately predict the future, the cost of many renewable technologies continues to fall year on year. And while the fall-rate may slow down in the coming years, renewable energy is fast-becoming cheaper than fossil fuels, a recent IRENA report states. Which is good news for the economy and good news for global efforts to reach net zero emissions by 2050, as we strive to keep temperatures within the Paris Agreement’s 1.5℃ climate target. “Today, renewables are the cheapest source of power,” said IRENA’s Director-General Francesco La Camera. “Renewables present countries tied to coal with an economically attractive phase-out agenda that ensures they meet growing energy demand, while saving costs, adding jobs, boosting growth and meeting climate ambition.” DON'T MISS ANY UPDATE ON THIS TOPIC Create a free account and access your personalized content collection with our latest publications and analyses. Sign up for free License and Republishing World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use. The views expressed in this article are those of the author alone and not the World Economic Forum. RELATED TOPICS: SDG 13: Climate ActionSDG 07: Affordable and Clean EnergyClimate ChangeEnergy Transition SHARE: * * * * * Global Agenda THE AGENDA WEEKLY A weekly update of the most important issues driving the global agenda Subscribe today You can unsubscribe at any time using the link in our emails. For more details, review our privacy policy. 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