The costs of renewable energy technologies have seen an unprecedent decline in recent years. Notably solar PV costs have declined by around 80% over the past decade. Further cost declines are projected for the coming years for both renewable energy generation and enabling technologies such as battery storage systems. With the continuing decline in costs, the share of renewable energy will continue to increase in the energy system. There is also a large potential to reduce growth in demand from a large portfolio of low-cost energy efficiency options.
Scaling up financing for accelerating energy transition through the utilisation of the renewable energy and energy efficiency potential remains as a critical task. The question remains how and to which extents funds need to be mobilised to utilise this potential and build the necessary the infrastructure. In addition, new forms of financing instruments will be needed that are tailored to the needs of different sectors and technologies with the aim to diversify investment sources and reduce risks related to energy transition investments