Figure of the Month: 20
The energy transition presents not only a significant challenge but also an immense economic opportunity, driven by remarkable learning effects. For instance, the cost of photovoltaic modules decreases by 20% with each doubling of production—a production scale that has increased a thousandfold over the past two decades. Consequently, the wholesale price per watt has plummeted from 5 euros in 2000 to just 10 cents today—a mere fraction of its former cost. Lithium-ion batteries exhibit a similarly impressive learning rate and production growth. In the USA, the annual installed capacity of battery storage systems now surpasses that of new gas-fired power plants—a striking indicator of transformation. Similarly, the cost of electrolyzers for green hydrogen is anticipated to decline just as swiftly.
Nonetheless, substantial challenges persist, heightened by the evolving geopolitical landscape. Competitive and affordable energy prices are more essential than ever. Achieving this requires a resilient and efficient infrastructure coupled with an accelerated heat transition. To accomplish these goals, it is crucial to develop appropriate financing instruments for grid expansion, promote decentralized solutions, and fundamentally advance market-based, grid-supportive pricing mechanisms. The energy transition is already underway, and it must be pursued with unwavering determination and strategic foresight to secure a sustainable and economically prosperous future. A challenge that the new government must tackle.
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