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. This milestone underscores the accelerating economic advantage of renewables and their growing role in the global energy transition.
The findings highlight a critical shift: renewables are no longer just an environmentally friendly option but also the most cost-effective choice for new power generation. According to IRENA, the cost of electricity from solar and wind has continued to decline, making them competitive with—and often cheaper than—coal, natural gas, and other fossil fuels. This trend is expected to drive further investment and deployment of renewable energy worldwide.
The implications are far-reaching. For consumers, lower renewable energy costs could translate into reduced electricity bills and greater energy independence. For industries, particularly those with high energy consumption, the availability of cheap renewable power can lower operational costs and enhance competitiveness. On a global scale, the shift to renewables is crucial for meeting climate targets and reducing greenhouse gas emissions.
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 the market. Companies like Turbo Energy are part of a broader ecosystem that includes innovative startups and established players driving the green economy forward.
The report from IRENA is based on data from projects commissioned in 2025, covering a wide range of technologies including solar photovoltaic, onshore wind, offshore wind, hydropower, and bioenergy. It found that the global weighted-average levelized cost of electricity (LCOE) from solar PV fell by 13% year-on-year, while onshore wind costs dropped by 9%. These cost reductions are due to technological improvements, economies of scale, and competitive supply chains.
As renewables become increasingly cheaper, the economic case for retiring existing fossil fuel plants and replacing them with clean energy strengthens. This could accelerate the phase-out of coal and gas plants, particularly in regions where renewables are already cost-competitive. However, challenges remain, including grid integration, storage, and policy support.
The news is particularly significant for investors and policymakers. For investors, the cost competitiveness of renewables signals strong growth potential for the sector. For policymakers, it provides a clear rationale for implementing policies that support renewable energy deployment, such as carbon pricing, renewable portfolio standards, and grid modernization.
Overall, the IRENA report confirms that the energy transition is not only necessary for the environment but also economically advantageous. The days of renewables being a niche, expensive alternative are over; they are now the default choice for new power generation.
