The global shift toward renewable energy has evolved from a moral and environmental obligation into a critical economic and strategic priority for governments and corporations alike. A recent report by Management Partners, drawing on insights from energy expert Bart Boesmans, former CTO at ACWA Power and visiting professor at KU Leuven, highlights how cost competitiveness, rapid deployment, and resilience are now the primary drivers of renewable adoption.
From Climate Goals to Economic Advantage
Renewables are no longer just about reducing carbon emissions. They are increasingly seen as a vehicle for economic growth, competitive advantage, and industrial expansion. Declining costs and faster deployment timelines have made solar and wind power financially and strategically attractive for nations and businesses seeking reliable, low-cost energy.
Falling Costs Drive Adoption
The Levelized Cost of Energy (LCOE) for utility-scale solar has fallen dramatically, reaching $43 per MWh in 2024, down from over $350 per MWh in 2009. Onshore wind generation is now around $44 per MWh. Innovations in modular technology and industrial-scale manufacturing have fueled these reductions, similar to advancements seen in automotive and electronics industries.
The Middle East has emerged as a leader in affordable renewables. For example, Saudi Arabia’s Fasiliyah Photovoltaic Project achieved a tariff of just $10.40 per MWh, signaling the region’s transition away from oil and gas toward sustainable energy sources.
The Speed Advantage
Renewable energy projects are also fast to deploy, often constructed within 1–2 years, compared with 5+ years for gas plants and up to two decades for nuclear facilities. This speed advantage is especially important for rapidly growing economies and energy-intensive industries, allowing regions with strong renewable resources to become new industrial hubs for data centers, steel mills, and chemical plants.
“Renewables can be deployed at scale within 1 to 2 years, significantly faster than conventional gas or nuclear plants, making them ideal for fast-growing economies,” says Boesmans.
Enhancing Energy Sovereignty
Renewables also provide national resilience, as they operate independently of volatile global fuel markets. Once installed, solar and wind assets require no ongoing fuel, mitigating risks from price spikes and geopolitical uncertainty. Complemented by declining battery storage costs, these technologies enable stable, uninterrupted power while supporting higher penetration of renewables.
“Energy storage, particularly battery technology, is critical for enabling higher penetration of renewables and follows a similar cost-reduction trajectory as solar PV. Renewables, storage, and energy efficiency should be viewed together,” Boesmans explains.
Policy and Corporate Action Needed
To capitalize on this opportunity, policymakers must focus on long-term regulatory frameworks, streamlined permitting, and adequate grid access. Corporate leaders are advised to secure long-term power purchase agreements (PPAs) and carefully select sites to lock in cost stability for decades.
The report emphasizes that renewable energy should now be recognized as essential infrastructure, driving competitiveness, industrial growth, and job creation. The transition has moved beyond debate—the focus is on speed and strategic alignment.
“The renewable energy transition has already moved from being a climate-first solution to becoming an economic imperative. It is no longer about whether renewables should be adopted, but how quickly stakeholders can align their strategies to capture this generational opportunity,” says Boesmans.
The message is clear: renewable energy is no longer optional—it is a core driver of economic, industrial, and national security strategy, and the time to act is now.