Climate control management has been boosted by the fast expansion of solar and wind power in recent years, which has provided promise for a more sustainable future. Understanding how renewable energy has grown exponentially in the past provides us a better sense of how quickly it can develop in the future to fulfill climate targets.
The expansion of renewable energy has been fueled mostly by a reduction in costs. There has been an 85% decrease in the cost of solar photovoltaic power since 2010 and a 50% decrease in the cost of onshore and offshore wind generation since 2010. Solar and wind power are currently competitive with fossil fuels in terms of price.
Positive feedback loops are to thank for the substantial reduction in costs. Because of economies of scale and robust distribution networks, among other things, renewable energy technologies become more affordable as more of them are adopted. Increased implementation is a result of lower deployment costs.
Each time solar capacity deployed globally has doubled in the last decade; the price of deploying solar capacity has decreased by 34%. It’s easy to replicate cost-cutting or technology gains achieved elsewhere in the world since renewable energy technologies are modular and standardized.
Moreover, renewable energy deployment is self-sustaining in other ways. Renewables’ popularity, political clout, and financial viability are all increasing, making it simpler to gain further legislative backing and funding. The cost of finance for renewable energy projects has declined as investors become more aware of renewable energy’s technical and project risks.
Renewable energy’s expansion has also relied heavily on government funding. Feed-in tariffs, competitive auctions, tax credits, and subsidies for renewable energy have all contributed to lower prices and increased adoption. Renewable energy growth has also been encouraged by government funding in research and development.
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