Even if it wasn't official, it had been talked about for some time. And it was during the final days of 2016 that the confirmation arrived: photovoltaic is today the cheapest renewable energy source at a global level and capable of competing with fossil fuels, in particular coal and gas.

This is revealed by the latest report published by Bloomberg New Energy Finance, called Climatescope, in which one can read how the fall in panel prices and the growth of new installations in emerging countries has given solar the decisive push. Electricity produced from photovoltaic sources would therefore be more competitive on an economic level too, surpassing wind and competing with coal and natural gas.

Climatescope 2016 and the future of energy

A renewables-dominated landscape — that is the picture painted by the report from one of the most important financial centres on the planet. According to the document, solar saw a 43 per cent increase in investment in 2015 alone, exceeding 7 billion euros. And all of this without subsidies.

Leading the energy revolution are, unquestionably, the developing countries, Latin America and Asian markets such as China and India. The installed capacity in these two countries alone is the highest of all the others combined that are considered in the report: "A total of 62 GW of wind, solar, small hydroelectric and biomass capacity was commissioned across the 10 countries during the year," reads the press release.

"China is at the centre of this performance and recorded another record year, even while in the midst of profound energy sector reforms. India installed 7.9 GW in 2015 and the energy transition is also gaining ground in Pakistan, with 758 MW, largely wind and solar." Moreover, it is precisely those countries with a grid insufficient to meet demand that have the brightest prospects: solar and wind can produce electricity off-grid too.

Tipping point

It is true that wind and sun are not always available or present. For this reason, coal and natural gas will still play a role in the electricity mix in the years to come. But this role will carry ever less weight. "We have entered the era of low-cost photovoltaics," assures Bloomberg New Energy Finance chairman Michael Liebrech. And the figures back this up at a global level: in 2015 alone, for the first time, more electrical capacity was installed from renewable sources than from all other fossil fuel sources combined. If the word "peak" is used for oil to signal its end, today we are witnessing a true "tipping point" for renewables.