Finally had a chance to read this VERY IMPORTANT piece by @MaxCRoser from @OurWorldInData on the evolution of global energy prices.

Let me summarize my most important take aways: https://ourworldindata.org/cheap-renewables-growth

As the following chart shows. Fossil energy sources do not only contribute massively to #climatechange but also kill millions now. Millions die every year, because of the effects of coal-induced air pollution. We need to get rid of fossil fuels and fast!

The prices of electricity from renewables like solar and wind have come down exponentially and are now cheaper than coal and even gas. Electricity from solar has come down by a whopping 89% in the past decade. That is miraculous.

BTW subsidies are excluded here, which makes it even more impressive.

What is driving these massive price declines? They occur, because solar technology is subject to massive learning effects. In short, learning by doing. With every doubling of cumulative capacity prices decline by 20%.

Fossil fuel plants can't really replicate these effects, because they will soon reach a floor of how cheap operating costs can get, as there are always the cost of the fuels themselves (coal, gas etc.). While the wind and the sun keep on giving for free.

In summary, energy prices for renewables have become very cheap and will likely continue to become cheaper.

Government must use the favorable financing conditions (low interest rates etc.) to massively invest in the energy transition.

This also offers tremendous potential for Africa's development. Instead of repeating the mistakes of the West and now much of Asia, Africa does not have to rely on fossil fuels to power its development. It can go directly to cheap, clean energy sources.

THE END