SIMPLE ECONOMICS:

Last year, the global cost of onshore wind energy fell by 15 per cent, offshore wind projects fell by 13 per cent, and the cost of solar PV dropped by 13 per cent, the IRENA report says.

IRENA says around two-thirds of renewable energy additions last year had lower costs than the globally cheapest coal-fired power stations, providing further evidence that wind and solar continue to beat fossil fuels on cost.

"Renewables are by far the cheapest form of power today," director general of IRENA, Francesco La Camera, said.

"2022 is a stark example of just how economically viable new renewable power generation has become."

"Renewable power frees economies from volatile fossil fuel prices and imports, curbs energy costs and enhances market resilience - even more so if today's energy crunch continues."

IRENA estimated that the more than 250GW of new renewable energy projects commissioned in 2021 helped avoid US$55 billion (A$82 billion) in additional fossil fuel energy costs as a result of the coal, gas and oil price spikes observed in 2022.

IRENA found that renewables were particularly competitive in European countries, where there was the largest gap in price between wind and solar technologies and those of fossil fuels.

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