EBRD says renewables are now cheapest energy source

The EBRD is urging a step change in levels of investment in renewable sources of energy.  Competitive pressures have led to a significant reduction so that renewables are often the cheapest sources of energy.

Harry Boyd-Carpenter, EBRD Director, Head of Power and Energy Utilities, will say at the FT Climate Finance Summit in London on 9 October: “The EBRD believes that two key steps to reduce greenhouse gas emissions are to increase the use of electricity and to produce most of this electricity from renewable sources. The Bank believes that renewable energy markets in many of the countries where it invests have reached a stage where the introduction of competitive auctions will lead both to a steep drop in electricity prices and an increase in investment.”

This has already happened in Egypt and Jordan, following progressive changes in policy. In Jordan, for example, the introduction of competitive practices, with the assistance of the EBRD and other international partners, has delivered an 85 per cent price reduction to less than 2.5 US cents per kWh, which is cheaper than generating electricity from gas.

The FT Climate Summit is dedicated to aligning policy and practice of investing with the aim of limiting global warming to 2 degrees Celsius. The event is taking place on 9 October 2018, shortly after the UN Intergovernmental Panel on Climate Change (IPCC) issues its key report “Global Warming of 1.5°C”.