Renewables cost ten times less than fossil fuels, says report

AMSTERDAM, The Netherlands, July 11, 2007. Investing in green power will save ten times the fuel costs of a ‘traditional’ future scenario with fossil fuels, according to a report from Greenpeace and the European Renewable Energy Council.

Renewables could save US$180 billion a year by 2030 and reduce CO2 emissions by half, explains ‘Future Investment ‑ A sustainable investment plan for the power sector to save the climate.’ The report provides an economic argument for shifting global investments towards solar, wind, hydro, geothermal and bioenergy over the next quarter century.

“Our report shows not only that the world’s electricity needs can be met by renewable energy but that, by doing so, we will literally save trillions of dollars; a massive $180 billion a year forever,” explains Sven Teske of Greenpeace International. “In sharp contrast, a 'business as usual' approach casts a dark cloud over our future. Its 10,000 new fossil fuel power plants would increase global CO2 emissions by over 50% and more than double fuel costs; there is no way of putting a price on the disastrous results this will have for environment and humanity.”

The vision would require an annual investment of $22 billion in green power plants above the current global expenditure but the savings in fuel costs would be $202 billion per year. Converting the annual subsidies of $250 billion from fossil fuels to renewables would cover all costs.

“The renewable industry is willing and able to deliver the power plants the world needs; we simply need the right climate and energy policy,” adds Oliver Schäfer of EREC. “Decisions made in the next few years will continue to have an impact in 2050. Only if a renewable energy path is taken, can we avoid the worst excesses of climate change.”

EREC says the global market for wind turbines was worth Euro 18 billion last year and $50 billion for the total renewable energy industry. Under the ‘energy [r]evolution’ scenario, the total market for renewables would be worth $288 billion by 2030.

The ‘Energy [R]evolution’ scenario was designed as an alternative to the world energy outlook of the International Energy Agency, and a blueprint for how to reduce global CO2 emission by 50% by 2050 to avoid climate change, while maintaining global economic growth. Utilities plan to invest in 10,000 new fossil fuel power plants until 2030 and, to supply those facilities, the total cost until 2030 will be $18,600 billion, compared to $13,100 billion in the ‘Energy [R]evolution’ scenario.

An average global warming of 2°C threatens millions of people with an increased risk of hunger, malaria, flooding and water shortages, the report warns. If rising temperatures are to be kept within tolerable limits, the world needs to significantly reduce GHG emissions.

In contrast with fossil fuels, “the reserves of renewable energy that are technically accessible globally are large enough to provide about six times more energy than the world currently consumes ‑ forever,” it explains. “Renewable energy technologies vary widely in their technical and economic maturity, but there are a range of sources which offer increasingly attractive options.”

“Some of these technologies are already competitive; their economics will further improve as they develop technically, as the price of fossil fuels continues to rise and as their saving of carbon dioxide emissions is given a monetary value globally,” it adds. “The solution to our future energy needs lies instead in greater use of renewable energy sources for both heat and power.”

“Exploitation of the large energy efficiency potential will slow down the rapidly growing electricity demand from the current 13,675 TWh/a to 26,000 TWh/a by 2050,” it notes. “The electricity sector will be the pioneer of renewable energy utilisation.”

-Source Refocus-