Datastream
Electricity from Renewable Energy Sources is Now Cheaper than Ever
The Briefing
- Electricity from new solar photovoltaic (PV) plants and onshore wind farms is now cheaper than electricity from new coal-fired power plants
- The cost of electricity from solar PV plants has decreased by 90% since 2009
The Transition to Renewable Energy Sources
Renewable energy sources are at the center of the transition to a sustainable energy future and the fight against climate change.
Historically, renewables were expensive and lacked competitive pricing power relative to fossil fuels. However, this has changed notably over the last decade.
Renewables are the Cheapest Sources of New Electricity
Fossil fuel sources still account for the majority of global energy consumption, but renewables are not far off. The share of global electricity from renewables grew from 18% in 2009 to nearly 28% in 2020.
Renewable energy sources follow learning curves or Wright’s Law—they become cheaper by a constant percentage for every doubling of installed capacity. Therefore, the increasing adoption of clean energy has driven down the cost of electricity from new renewable power plants.
| Energy Source | Type | 2009 Cost ($/MWh) | 2020 Cost ($/MWh) | % Change in Cost |
|---|---|---|---|---|
| Solar Photovoltaic | Renewable | $359 | $37 | -90% |
| Onshore Wind | Renewable | $135 | $40 | -70% |
| Gas - Peaker Plants | Non-renewable | $275 | $175 | -36% |
| Gas - Combined Cycle Plants | Non-renewable | $83 | $59 | -29% |
| Solar thermal tower | Renewable | $168 | $141 | -16% |
| Coal | Non-renewable | $111 | $112 | +1% |
| Geothermal | Renewable | $76 | $80 | +5% |
| Nuclear | Non-renewable | $123 | $163 | +33% |
Solar PV and onshore wind power plants have seen the most notable cost decreases over the last decade. Furthermore, the price of electricity from gas-powered plants has declined mainly as a result of falling gas prices since their peak in 2008.
By contrast, the price of electricity from coal has stayed roughly the same with a 1% increase. Moreover, nuclear-powered electricity has become 33% more expensive due to increased regulations and the lack of new reactors.
When will Renewable Energy Sources Take Over?
Given the rate at which the cost of renewable energy is falling, it’s only a matter of time before renewables become the primary source of our electricity.
Several countries have committed to achieving net-zero carbon emissions by 2050, and as a result, renewable energy is projected to account for more than half of the world’s electricity generation by 2050.
Where does this data come from?
Source: Lazard Levelized Cost of Energy Analysis Version 14.0, Our World in Data
Details: Figures represent the mean levelized cost of energy per megawatt-hour. Lazard’s Levelized Cost of Energy report did not include data for hydropower. Therefore, hydropower is excluded from this article.
Economy
Charted: Public Trust in the Federal Reserve
Public trust in the Federal Reserve chair has hit its lowest point in 20 years. Get the details in this infographic.
The Briefing
- Gallup conducts an annual poll to gauge the U.S. public’s trust in the Federal Reserve
- After rising during the COVID-19 pandemic, public trust has fallen to a 20-year low
Charted: Public Trust in the Federal Reserve
Each year, Gallup conducts a survey of American adults on various economic topics, including the country’s central bank, the Federal Reserve.
More specifically, respondents are asked how much confidence they have in the current Fed chairman to do or recommend the right thing for the U.S. economy. We’ve visualized these results from 2001 to 2023 to see how confidence levels have changed over time.
Methodology and Results
The data used in this infographic is also listed in the table below. Percentages reflect the share of respondents that have either a “great deal” or “fair amount” of confidence.
| Year | Fed chair | % Great deal or Fair amount |
|---|---|---|
| 2023 | Jerome Powell | 36% |
| 2022 | Jerome Powell | 43% |
| 2021 | Jerome Powell | 55% |
| 2020 | Jerome Powell | 58% |
| 2019 | Jerome Powell | 50% |
| 2018 | Jerome Powell | 45% |
| 2017 | Janet Yellen | 45% |
| 2016 | Janet Yellen | 38% |
| 2015 | Janet Yellen | 42% |
| 2014 | Janet Yellen | 37% |
| 2013 | Ben Bernanke | 42% |
| 2012 | Ben Bernanke | 39% |
| 2011 | Ben Bernanke | 41% |
| 2010 | Ben Bernanke | 44% |
| 2009 | Ben Bernanke | 49% |
| 2008 | Ben Bernanke | 47% |
| 2007 | Ben Bernanke | 50% |
| 2006 | Ben Bernanke | 41% |
| 2005 | Alan Greenspan | 56% |
| 2004 | Alan Greenspan | 61% |
| 2003 | Alan Greenspan | 65% |
| 2002 | Alan Greenspan | 69% |
| 2001 | Alan Greenspan | 74% |
Data for 2023 collected April 3-25, with this statement put to respondents: “Please tell me how much confidence you have [in the Fed chair] to recommend the right thing for the economy.”
We can see that trust in the Federal Reserve has fluctuated significantly in recent years.
For example, under Alan Greenspan, trust was initially high due to the relative stability of the economy. The burst of the dotcom bubble—which some attribute to Greenspan’s easy credit policies—resulted in a sharp decline.
On the flip side, public confidence spiked during the COVID-19 pandemic. This was likely due to Jerome Powell’s decisive actions to provide support to the U.S. economy throughout the crisis.
Measures implemented by the Fed include bringing interest rates to near zero, quantitative easing (buying government bonds with newly-printed money), and emergency lending programs to businesses.
Confidence Now on the Decline
After peaking at 58%, those with a “great deal” or “fair amount” of trust in the Fed chair have tumbled to 36%, the lowest number in 20 years.
This is likely due to Powell’s hard stance on fighting post-pandemic inflation, which has involved raising interest rates at an incredible speed. While these rate hikes may be necessary, they also have many adverse effects:
- Negative impact on the stock market
- Increases the burden for those with variable-rate debts
- Makes mortgages and home buying less affordable
Higher rates have also prompted many U.S. tech companies to shrink their workforces, and have been a factor in the regional banking crisis, including the collapse of Silicon Valley Bank.
Where does this data come from?
Source: Gallup (2023)
Data Notes: Results are based on telephone interviews conducted April 3-25, 2023, with a random sample of –1,013—adults, ages 18+, living in all 50 U.S. states and the District of Columbia. For results based on this sample of national adults, the margin of sampling error is ±4 percentage points at the 95% confidence level. See source for details.
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