The biggest reasons for the dramatic price drop in clean and renewable energy projects have to do with simple economics: technological advancements have made solar and wind projects more efficient, and economies of scale have made them less expensive. Larger projects are possible at lower prices, and these large projects become less expensive as manufacturers are able to produce in greater volumes.
And the advances in efficiency are pretty amazing: according to CBS News, “A mid-sized turbine today creates as much energy as 15 of the earliest model.” This lowers construction and installation costs, allowing for projects to be less expensive on that end as well.
There is also support from energy buyers of all sizes. The pipeline for projects is long, especially in this early phase of scaling up. The Re100 – a group of large businesses committed to 100% renewable energy by 2050 at the latest – is at 25% of its collective goal after five years. And small- and medium-sized buyers are increasingly able to access the clean energy market through REBA, the Renewable Energy Buyers Alliance, which is helping to break down barriers in the marketplace.
This early acceleration period is an exciting time for renewables and energy efficiency, as an entire suite of market, public, and political forces come together to create the future of energy after fossil fuels.
Find the CBS News article here.
Find Re100’s website here.