Key Takeaways
For the first time in history, wind and solar power generated more electricity globally than natural gas, a major milestone in the energy transition driven by falling costs and accelerating deployment.
"The current energy crisis has further strengthened the economic case for renewables compared to imported gas, while also adding greater political urgency to accelerate deployment,” said Kostantsa Rangelova, global electricity analyst at Ember.
Together, wind and solar produced 22% of global electricity in April, compared with 20% from gas, the UK-based think tank reported. The achievement was supported by strong year-over-year growth in key markets, including a 14% increase in China and 13% in the European Union.
This shift challenges the long-held assumption that fossil fuels are inherently more reliable, as advancing battery technology makes round-the-clock renewable power economically viable and often cheaper than new coal or gas plants.
The breakthrough is underpinned by a structural shift in the economics of energy systems. The International Renewable Energy Agency (IRENA) now tracks a benchmark for 24/7 renewable power, the Firm Levelized Cost of Electricity, enabling direct comparisons to fossil fuels. Firm solar-plus-storage systems are now priced between $54 to $82 per megawatt-hour, with some projects in China reaching as low as $30 per megawatt-hour. This compares favorably with new coal plants ($70-$85/MWh) and new gas generation (often over $100/MWh).
The convergence of cost and reliability is accelerated by a more than 90% drop in battery storage costs since 2010. This trend dismantles the "baseload myth," which held that intermittent renewables couldn't power modern economies. "No one can talk anymore about whether renewables are economically viable or reliable,” said IRENA Director-General Francesco La Camera.
Geopolitical instability has reinforced the economic case for renewables. The war in Ukraine and tensions in the Middle East have exposed the vulnerabilities of centralized, fossil-fuel-dependent energy systems. These events highlight the risks of relying on global supply chains for fuel transport, prompting a shift toward decentralized generation and local storage for energy security.
However, the primary constraint is now infrastructure. Electric grids, designed for centralized fossil fuel plants, are a bottleneck to renewable expansion. Without significant modernization, transmission capacity, not generation, will become the main impediment to growth. This challenge is compounded by rising electricity demand from data centers, AI, and general electrification, which is growing faster than renewable capacity can be added.
The COP28 agreement to triple global renewable energy capacity by 2030 has provided a key political tailwind, aligning policy with the clear economic and engineering trends. The question is no longer if the transition will happen, but how quickly grids can be adapted to accommodate it.
This article is for informational purposes only and does not constitute investment advice.
