Renewable energy and batteries outperform fossil fuel costs

A report from the International Renewable Energy Agency (IRENA) indicates that solar and wind energy, when combined with battery storage systems, can provide 24-hour electricity at a lower cost than fossil fuels. In sun- and wind-rich regions, solar energy with storage costs between $54 and $82 per megawatt-hour (MWh). This is up to 46% cheaper than new gas plants globally and 36% less than new coal plants in China.

United Nations Secretary-General António Guterres noted that renewable energy is becoming an increasingly affordable, reliable, and secure option, calling for accelerated investment in energy infrastructure.

However, energy experts warn of a potential bubble regarding battery storage. In Spain, the lack of regulation for battery installations and incentives for data centers to use 80% renewable energy could lead to uncoordinated deployment. Experts suggest that excessive battery installation could flatten price curves to the point where the price differential between charging and discharging cycles disappears, similar to the market saturation seen in the photovoltaic sector.