The fundamental driver of this change is that renewable energy technologies follow learning curves, which means that with each doubling of the cumulative installed capacity their price declines by the same fraction. In most places in the world power from new renewables is now cheaper than power from new fossil fuels. This has dramatically changed within the last decade. For the world to transition to low-carbon electricity, energy from these sources needs to be cheaper than electricity from fossil fuels.įossil fuels dominate the global power supply because until very recently electricity from fossil fuels was far cheaper than electricity from renewables.
