Report Predicts Another Year of Lower Renewable Energy Costs

Renewable energy prices continue to fall as global competition shapes the market

A BloombergNEF report, cited by Reuters, reveals that clean energy technologies like wind, solar, and battery storage are set to become even more affordable this year, despite rising trade restrictions. China’s dominance in clean tech manufacturing has driven these cost reductions, though countries like the U.S. and Europe have imposed tariffs to protect domestic industries. Even with these trade barriers, renewable energy remains cheaper than new fossil fuel-based power in most global markets.

The report estimates that the cost of clean power technologies will decline by another 2-11% in 2025, continuing a trend that could lead to a 22-49% drop by 2035. Although protectionist policies may temporarily slow these declines, the overall trajectory points to long-term affordability gains. As BNEF’s Matthias Kimmel notes, China’s low-cost exports are reshaping the industry, making it increasingly difficult for any government to reverse the shift toward cheaper renewable energy.

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