Clean Energy Can Be Deployed Quicker And Cheaper Than Fossil Fuels
Last Updated: 2/7/25
As energy demand rises, evidence points to clean energy as the most economical solution. Clean energy projects are faster and cheaper to deploy than fossil fuels, with solar and onshore wind farms typically taking less than two years to build, compared to four years for gas-fired power plants. Major utility companies have acknowledged this as well: in a recent investor presentation, NextEra Energy said the most economical answer to America’s power needs is to build renewables for energy and storage, noting that clean energy had a faster deployment timeline than all other types of power generation.
Clean energy has also proven to be scalable, and record growth in renewables has driven cost-competitiveness with fossil fuels. In 2023, 81 percent of new renewable energy capacity produced electricity more cheaply than fossil fuels. Clean energy systems are also cheaper to operate and maintain. The lifetime costs of onshore wind projects were 67 percent lower than fossil fuel power plants and the lifetime costs of solar projects were 56 percent lower. Clean energy is an efficient and cost-effective solution to meet our energy needs that will also help mitigate the climate impacts of power generation.
Clean Energy Is Faster And Cheaper To Deploy Than Fossil Fuels
- Solar and wind energy are being deployed about five times faster than all other energy sources combined.
- According to the World Resources Institute, solar and onshore wind farms typically take less than two years to build, while gas-fired power plants can take four years to become operational, and can also require the construction of additional pipeline infrastructure.
- Solar farms generally take 8 to 18 months to complete and wind farms can be built in 6 to 9 months.
- According to the International Renewable Energy Agency, renewables are faster and cheaper to deploy than other forms of energy.
- In an investor presentation, NextEra Energy said the most economical answer to America’s power needs is to build renewables for energy and storage, noting that renewables had a faster deployment timeline than all other types of power generation.
- In its Q4 2024 earnings call, the company noted strong demand for clean energy “because they are low cost and can be deployed now.”
- John Ketchum, NextEra’s CEO, said: “Given the current power demand environment, it is more important than ever to unleash all forms of electric generation starting with renewables, which are ready now, as I will discuss more in a minute.”
- NextEra Energy said clean energy sources were needed to meet rapidly growing energy demand in the U.S.
- John Ketchum, NextEra’s CEO, said: “If we take renewables off the table, we are going to have a real power shortage problem in this country.”
Natural Gas And Nuclear Systems Are Slow To Build
- At the Politico Energy Summit, NextEra Energy’s CEO, John Ketchum, said that natural gas systems were not expected to come online until 2032.
- Ketchum said that competition and high costs for gas turbines, construction labor shortages, and tariffs mean that new gas-fired power plants would need at least seven years to get online.
- Ketchum also said: “We need a bridge to get ourselves to 2032 when that gas shows up. And when that gas shows up, it’s going to be three times more expensive than it’s ever been.”
- Gas turbine manufacturers have long wait times for new turbines, with Siemens Energy estimating three-year waits for new turbine orders and GE Vernova booking orders for delivery in 2028 or later.
- Recent nuclear capacity construction has been extremely slow, with construction of Plant Vogtle in Georgia lasting 14 years.
Clean Energy Systems Are Cheaper To Operate And Maintain
- A 2024 report found that the lifetime costs of onshore wind projects were 67 percent lower than fossil fuel power plants. The lifetime costs of solar projects were 56 percent lower than fossil fuel plants.
- The lifetime cost reductions were driven by efficiency improvements, scaled-up manufacturing, and reduced materials intensity.
Record Growth In Clean Energy Is Driving Cost-Competitiveness With Fossil Fuels
- In 2023, clean energy saw record growth: 473 GW of new capacity, which was a 54 percent increase compared to 2022 additions, and the largest annual growth since 2000.
- In 2023, clean energy reached cost-competitiveness with fossil fuels, with 81 percent of new renewable energy capacity producing electricity more cheaply than fossil fuels.
- A 2024 report found that renewable power deployed globally since 2000 had saved an estimated $409 billion in fuel costs in the power sector.