How Is KR 2.2 Tracking?
Solar and wind power are already the cheapest sources of electricity for new construction for two thirds of the globe, including China, India, Western Europe, and most of South America. In the U.S., despite historically low natural gas prices, onshore wind still costs less after production tax credits are applied. Among other top-emitting countries, the outliers are Russia, where natural gas is the least expensive option, and Turkey, Indonesia, and Japan, where coal remains the most economical choice.
To achieve our Solar and Wind KR, the price of renewables must keep falling until it undercuts fossil fuels everywhere, even after factoring in the cost of storage and transmission. Carbon taxes and financial incentives for clean energy will help in this regard. So will the elimination of permitting, interconnection, and other deployment bottlenecks.