The rapid expansion of renewable energy saved the global economy an estimated $480 billion in fossil fuel costs in 2025, reinforcing the growing case for clean energy.

This comes as the United Nations and the Federal Government yesterday pushed for more renewable adoption through the Africa Mini-Grid Programme (AMP).

The savings show the increasing shift away from fossil fuel dependence towards decentralised renewable energy systems, even as experts insisted that clean energy was no longer driven solely by climate concerns but by economics, energy security and resilience.

According to the Renewable Power Generation Costs in 2025 released by the International Renewable Energy Agency (IRENA), more than 90 per cent of utility-scale renewable energy capacity installed globally last year generated electricity at a lower cost than the cheapest new fossil fuel alternative.

The report showed that solar photovoltaic (PV) electricity remained at $44 per megawatt hour (MWh), while the cost of onshore wind power declined by four per cent to $33/MWh. Offshore wind costs also fell by three per cent to $78/MWh.

By contrast, the cost of new gas-fired electricity generation continued to rise in several markets. Capital costs for combined-cycle gas plants increased sharply, while electricity generation costs approached $100/MWh in countries such as Italy, Germany and Japan due to higher gas prices and supply uncertainties.

IRENA said renewable energy installations helped countries to save about $480 billion in fossil fuel expenditure in 2025, cushioning economies from volatile global fuel markets.

Director-General of IRENA, Francesco La Camera, said the steady decline in renewable energy costs was delivering significant economic benefits for countries investing in clean energy.

He noted that every additional renewable energy project strengthened protection against fluctuations in fossil fuel prices while improving national competitiveness.

The agency noted that renewable energy became an even more valuable economic buffer following disruptions to global energy markets, including the closure of the Strait of Hormuz earlier this year, which caused energy import prices to surge across parts of Asia and Europe.

Meanwhile, Nigeria is seeking to leverage the falling cost of renewable technologies to address its electricity access deficit through the Africa Mini-Grid Programme (AMP).

Speaking at the programme’s media launch, the Managing Director and Chief Executive Officer of the Rural Electrification Agency (REA), Abba Aliyu, described the initiative as evidence of the impact of strategic partnerships involving the Federal Government, the United Nations Development Programme (UNDP) and the Global Environment Facility (GEF).

He said the programme had delivered 23 new renewable-powered mini-grids across underserved communities, providing electricity for households, businesses and agricultural processing.

According to him, the initiative demonstrates that reliable electricity can transform rural economies by improving agricultural productivity, supporting local enterprises and creating employment opportunities.

Aliyu stressed that energy access should move beyond merely connecting communities to the grid and instead focus on stimulating economic growth, strengthening food systems and improving livelihoods.

The Minister of Power, Joseph Teghe, also described the programme as a critical component of Nigeria’s energy transition strategy.

He said the Federal Government was committed to expanding decentralised renewable energy solutions to electrify underserved communities, healthcare facilities, tertiary institutions and agricultural clusters.

The UN representative at the event described access to clean energy as one of the defining challenges of this generation, stressing that expanding electricity supply is critical to achieving sustainable development and inclusive economic growth.

Speaking at the launch of the Africa Mini-Grid Programme (AMP), the UN Resident and Humanitarian Coordinator in Nigeria, Mohamed Malick Fall, said the global transition to clean energy is about more than electricity, noting that it powers hospitals, schools, businesses and job creation while improving livelihoods.