The worldwide rollout of renewable energy helped economies avoid an estimated $480 billion in fossil fuel expenses last year, strengthening the economic argument for clean power.
The finding was highlighted as the United Nations and Nigeria’s Federal Government jointly advocated for wider renewable uptake on June 2nd through the Africa Mini-Grids Programme, AMP.
The figures reflect a broader move away from reliance on fossil fuels toward distributed renewable systems. Experts stressed that the shift is now powered less by climate goals alone and more by cost advantages, energy security, and system resilience.
IRENA’s Renewable Power Generation Costs in 2025 report found that over 90 per cent of utility-scale renewable capacity added globally in 2024 produced electricity more cheaply than the least expensive new fossil fuel option.
Solar PV costs held steady at $44 per megawatt hour, MWh, while onshore wind dropped four per cent to $33/MWh. Offshore wind also eased by three per cent to $78/MWh.
In contrast, new gas-fired power became more expensive in multiple markets. Combined-cycle gas plant capital costs rose markedly, and generation costs climbed close to $100/MWh in Italy, Germany, and Japan, driven by elevated gas prices and supply risks.
IRENA said the build-out of renewables saved countries roughly $480 billion in fossil fuel outlays in 2025, helping to shield economies from swings in global fuel markets.
Francesco La Camera, IRENA’s Director-General, said the continued fall in clean energy costs is generating major financial gains for nations investing in renewables. He added that each new renewable project offers greater insulation against fossil fuel price volatility and boosts a country’s competitive position.
The agency noted that renewables provided an additional economic cushion after disruptions to global energy flows, including the temporary closure of the Strait of Hormuz earlier this year, which pushed import prices higher across parts of Asia and Europe.
Officials at the AMP launch said the programme has commissioned 23 new solar-powered mini-grids in communities that lacked reliable electricity, serving homes, small businesses, and agro-processing operations.
They argued that dependable power is changing rural economies by raising farm output, enabling local businesses, and generating jobs. The focus, they added, should extend beyond grid connections to using energy as a driver of growth, food security, and improved living standards.
Minister of Power Joseph Teghe described AMP as a key pillar of Nigeria’s transition plan. He said the government intends to scale decentralized renewable solutions to reach underserved areas, as well as health facilities, universities, and agricultural hubs.
UN Resident and Humanitarian Coordinator in Nigeria, Mohamed Malick Fall, said clean energy access is one of the most urgent issues of this era, and that expanding electricity is essential for sustainable growth and inclusion. Speaking at the AMP launch, he noted that the transition is about more than lights and sockets, it powers hospitals, schools, enterprises, and job creation, while raising incomes and quality of life.
