A recent report from the International Renewable Energy Agency (IRENA) has revealed that over 90% of all large-scale renewable energy projects added in 2025 were cheaper than the most affordable fossil fuels.
Titled ‘Renewable Energy Generation Costs in 2025’, the report outlines just how critical renewables have become to reducing fossil fuel dependence and enhancing energy security. Last year, renewable sources of energy like solar and wind proved that they are here to stay by surpassing fossil fuels in affordability, a key advantage as the world continues to grapple with several back-to-back energy crises.
Russia’s invasion of Ukraine in 2022 was the first blow to global energy markets and the U.S.-Iran war injected significant volatility into energy markets just as they were starting to recover, increasing the value of renewables as an affordable and more stable alternative.
IRENA’s report on energy dynamics in 2025 shows that clean sources of energy are already eclipsing fossil fuels in one of the most important metrics, price. Even the most affordable fossil fuel-sourced energy types are still costlier than renewables.
Furthermore, renewables are proving that they can act as an effective buffer to volatile international energy markets, allowing nations to maintain energy supplies and preserve their economies even when oil-producing regions in the Middle East are involved in conflict.
This means that in addition to aiding in green transition objectives, renewables are becoming increasingly important to maintaining energy security, which is critical to the functioning of any nation. According to IRENA, clean technologies are competitively advantageous to countries that invest in them through the dual role of reducing energy costs and shielding local energy markets from price fluctuations in the international market.
Energy generated from photovoltaic solar retailed at an average $44/MWh and onshore wind generated energy which cost $33/MWh, a 4% drop from the previous year. Similarly, offshore wind prices fell by 3% year-over-year to $78/MWh, making wind energy extremely competitive compared to fossil fuel alternatives.
Gas turbine shortages across global markets have had a noticeably negative effect on the U.S. energy market, particularly by the doubling costs required to construct new combined cycle power plants. In Japan, Germany, and Italy where gas prices tend to be high, costs have surged to over $100/MWh, and volatility caused by the Middle East crisis is also placing additional strain on global gas markets.
Through all of this, renewables consistently provided the most affordable energy in 2025, making them a necessity for any country that’s still beholden to international energy markets. IRENA notes that renewables also kept countries from buying $480 billion worth of fossil fuels in 2025, giving them a buffer against energy market volatility.
Director-General Francesco La Camera says every megawatt of energy generated from clean sources protects customers, public finances, and businesses from the economic effects of fluctuations in international fuel prices.
This vital role that renewables are playing is causing analysts to get a deeper appreciation of the transformation that various entities, such as Turbo Energy S.A. (NASDAQ: TURB), are bringing to different energy markets, one project at a time.
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