Clean energy is becoming increasingly difficult for fossil fuels to compete with on cost. New research from the International Renewable Energy Agency (IRENA) has found that round-the-clock renewable electricity systems combining solar, wind, and battery storage are now more cost-effective than many new coal and gas power projects.
The findings represent another major milestone in the global energy transition, particularly as businesses and governments continue to navigate energy security concerns, rising electricity demand, and ongoing market volatility linked to the global energy crisis.
For organisations prioritising business sustainability, the report reinforces how renewable energy is evolving from an environmental consideration into a clear commercial advantage. While renewables have often faced criticism around reliability and intermittency, the latest data suggests that advances in battery storage and falling technology costs are rapidly reshaping the economics of clean energy generation.
Renewable energy costs continue to fall
IRENA’s report, 24/7 renewables: The economics of firm solar and wind, examined the “firm-levelised costs” of electricity generation. This measures the total lifetime costs associated with generating, storing, and delivering reliable electricity around the clock.
According to the analysis, solar energy combined with battery storage now costs between $54 and $82 per megawatt-hour (MWh) across many global regions. By comparison, new coal generation in China ranges from $70 to $85 per MWh, while new gas generation globally averages around $100 per MWh.
The report also highlights how rapidly renewable energy technology costs have declined over the last decade:
- Solar PV installation costs have fallen by 87 percent since 2010
- Onshore wind costs have declined by 55 percent
- Battery storage costs have dropped by 93 percent
These reductions are helping accelerate investment in clean energy infrastructure while improving the ROI of sustainability initiatives for businesses and governments alike.
Battery storage is reshaping the clean energy debate
One of the biggest barriers to renewable energy adoption has historically been the challenge of intermittency. Solar and wind power generation depends on weather conditions, leading critics to argue that fossil fuels remain necessary for reliable electricity supply. However, advances in battery storage technology are rapidly changing that narrative.
IRENA found that solar-plus-storage costs have already fallen significantly since 2020 and are projected to decrease by a further 30 percent by 2030. In some high-performing regions, costs could fall below $50 per MWh within the next decade.
Wind-plus-storage systems are also becoming increasingly competitive, particularly in markets with strong renewable resources and growing electricity demand. António Guterres described renewable power as “the most affordable, reliable and secure option,” calling for faster investment in clean energy infrastructure and international cooperation.
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Energy security and resilience driving investment
The findings arrive at a time when many countries remain exposed to fossil fuel price volatility and geopolitical disruption. IRENA argues that renewable energy systems can strengthen energy security by reducing dependence on imported fuels and insulating economies from external shocks.
The report also notes that renewable energy projects can typically be developed within one to two years – significantly faster than many new gas-fired power projects. This shorter delivery timeline is becoming increasingly important as electricity demand rises from artificial intelligence technologies, digital infrastructure, and data centres requiring uninterrupted power supply.
At the same time, investor confidence in renewables continues to grow. Separate analysis from Mercom Capital Group found that corporate funding for solar projects surpassed $11bn in the first quarter of 2026, reflecting strong momentum across the clean energy sector.
Conclusion
The latest IRENA findings reinforce how clean energy is evolving beyond an environmental solution and becoming one of the most commercially viable options for long-term energy generation. Falling renewable energy costs, advances in battery storage, and growing energy security concerns are accelerating the shift away from fossil fuels across global markets.
As businesses face increasing pressure to strengthen resilience, reduce emissions, and manage long-term operational costs, renewable energy is likely to play an even more central role in corporate decision-making. Organisations that understand the strategic value of sustainability investments today may be better positioned to navigate future regulatory, economic, and energy challenges.
At ISS, we help organisations cut through the complexity of sustainability through practical corporate sustainability training that equips teams with the knowledge, tools, and confidence to create measurable business value and drive long-term resilience.
Dedicated to harnessing the power of storytelling to raise awareness, demystify, and drive behavioural change, Bronagh works as the Communications & Content Manager at the Institute of Sustainability Studies. Alongside her work with ISS, Bronagh contributes articles to several news media publications on sustainability and mental health.
