Falling cost of renewables heralds end of fossil era says IEA
Wed 12 November 2025
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The IEA's flagship report 'World Energy Outlook' says that cheaper renewables will dominate the energy markets of the future and that the transition away from fossil fuels is now 'inevitable' despite opposition and hostility from some quarters.
Updated annually, the World Energy Outlook (WEO) includes the latest energy data, technology and market trends, and government policies. It explores a range of possible energy futures and their implications for energy security, access and emissions.
The 2025 report projects that renewables will far outpace fossil fuels in growth, becoming the fastest growing energy source under all the scenarios examined. Solar photovoltaic electricity leads the charge, supported by gains in wind, hydropower, bioenergy and geothermal. In the 'stated policies' scenario, renewables absorb most of the increase in global energy demand, while fossil fuel use begins to plateau: coal peaks before 2030, oil levels off, and natural gas continues to rise more slowly.
WEO says that economics is driving inevitable change; renewables are becoming ever more cost-effective and investing in them now could save trillions in avoided fuel costs.
Bill Hare, CEO of the international non-profit Climate Analytics said: “The International Energy Agency shows what we’ve long known: continuing to back fossil fuels will make energy bills more expensive for everyday people. Investing in renewables means cheaper energy bills and is the fastest route to addressing energy poverty and overcoming energy insecurity.
"Backing renewables is a win-win for people’s wallets and the climate – in fact, all the different futures mapped out by the IEA have renewables growing faster than any other energy source.
"Renewables are now unstoppable: solar power and batteries are now so cheap that continuing to invest in fossil fuels is a needless climate and economic risk."
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