A new report by GlobalData reveals significant potential for renewable energy systems to match or even surpass the cost-effectiveness of fossil fuel-based power systems by 2050. Titled “Power Systems Transformation: Delivering Competitive, Resilient Electricity in High-Renewable Systems,” the report outlines how global electricity demand could triple, reaching an estimated 90,000 terawatt-hours (TWh) by mid-century. By contrast, today’s global energy demand is about 30,000 TWh.
The results underscore the extraordinary advantage enjoyed by sun belt countries, particularly India, Mexico, and the majority of Africa. They have the potential to lower power system costs by $30/MWh to $40/MWh by 2050. On July 29, 2025, the new report came out. What this demonstrates is how easy it can be to run power systems mostly on renewable energy.
The Future of Renewable Energy Costs
The report underscores that many nations can effectively operate power systems with 70% or more of their electricity derived from wind and solar energy. This feature is especially important for the nations located in the ‘wind belt,’ including the UK, Germany and Canada. These countries face greater balancing costs because they are more dependent upon wind energy. The report finds that their future cost can be competitive with today’s fossil fuel costs.
Adair Turner, chair of the Energy Transitions Commission (ETC), notes the essential role of various technologies in achieving zero-carbon power systems.
“Multiple technologies, including nuclear and geothermal, may play a role in zero-carbon power systems. But wind and solar will be the dominant source of power in most countries, providing 70% or more of electricity at costs at or below today’s fossil-based systems.” – Adair Turner, ETC chair
Balancing Renewable Energy Supply
One of the key takeaways of the report is underscoring that important distinction between energy systems. Low-cost solar-dominated systems primarily by moving energy demands from day to night, and high wind and solar systems could effectively outcompete today’s wholesale rates and grid costs. The transition to more renewable energy sources comes with big time economic benefits. It brings us closer to building more resilient power systems globally.
For countries that prioritize renewable energy, this could mean dramatic shifts to their electricity pricing models. As they ramp up the share of wind and solar in their energy mix, they’ll naturally do less fossil fueling. As a result, this move will help the country make meaningful strides toward larger climate milestones.
The Demand for Electricity by 2050
With global power demand expected to increase to 90,000 TWh by 2050, the transition to cleaner energy technologies is imperative. The report advocates for infrastructure investments to help ensure the transition is smooth. This will allow countries to better cope with surges in demand while continuing to maintain the integrity of their systems.
As countries explore paths to meet their electricity needs sustainably, the emphasis on renewable sources like wind and solar is becoming more pronounced. Technological breakthroughs and strategic investments are poised to make this the energy decade. Together this combination will create a more resilient, healthier, and cost-effective future for all forms of energy.
