Accelerating renewables to become main source of electricity drives down fossil fuel usage, significantly reducing the overall levelised cost of electricity, according to a new report.
The technology group Wärtsilä has issued the document to demonstrate the environmental and economic opportunities for states that decarbonise rapidly.
The Front-Loading Net Zero report states that electricity production costs could be reduced by up to 50% by 2050 if countries and states adopt 100% renewable systems faster than currently planned.
Significant cost reductions can be achieved by front-loading the deployment of renewables, mainly wind and solar photovoltaic, and by utilising the technologies needed to balance their inherent intermittency, such as energy storage and thermal balancing power plants.
The report indicates that carbon neutral systems can provide cheaper electricity compared to current fossil fuel-based systems.
Using models from Germany, India, and California, three markets with vastly different socio-economic dynamics, energy systems, and challenges, the report aims to demonstrate the cost-optimal path towards 100% renewable power systems in each region.
The report reveals that by accelerating 100% renewable power systems, substantial benefits are unlocked.
These include India halving its electricity costs by 2050, while California and Germany can cut costs by 17% and 8% by 2040 respectively.
In addition, coal-fired power – 70% of generation in India and 33% in Germany – can be securely replaced by renewables and flexibility from energy storage and thermal balancing power plants as early as 2040.
The report also suggests that colossal carbon savings can be made in the short term, enabling national climate targets to be achieved.
For example, Germany can avoid 422 million tonnes of carbon dioxide by 2040 by accelerating its coal phase-out.
This would help achieve its 65% reduction target (compared to 1990 levels) set for 2030, the report states.
Furthermore, renewables as the main source of primary energy for electricity generation can drive energy independence.
For example, Germany could avoid the need to import 550 TWh of power by accelerating the phase-out of coal.
Wärtsilä’s president chief executive Håkan Agnevall said: “As we approach COP26, our ‘Front-Loading Net Zero’ report should act as a wake-up call for leaders, as this is our last and best chance to get countries on pathways to carbon neutrality.
“Our modelling shows that it is viable for energy systems to be fully decarbonised before 2050, and that accelerating the shift to renewable power coupled with flexibility, will help economies to thrive.
“We have all the technologies that we need to rapidly shift to net zero energy.
“The benefits of renewable-led systems are cumulative and self-reinforcing – the more we have, the greater the benefits – so it is vital that leaders and power producers come together now to front-load net zero this decade.”