China drives Asia's $177b fossil fuel savings as renewables displace imports

Over 90% of new renewable capacity in 2025 undercut the cheapest fossil alternative.

Asian economies led global fossil fuel cost avoidance from renewable power growth in 2025, according to the International Renewable Energy Agency (IRENA).

China accounted for the largest share globally at $177b in avoided fossil fuel costs in 2025, followed by India at $18b and Japan at $15b. Indonesia, Thailand, and the Philippines combined avoided $5.7b in coal and gas imports over the same period.

Across 20 major economies covering most renewable generation, renewable power avoided $377b in fossil fuel purchases. Globally, renewables avoided $480b in fossil-fuel costs in 2025.

“The decline in renewable energy costs is delivering a powerful economic dividend,” said Francesco La Camera, Director-General of IRENA.

Solar photovoltaic cost stood at $44 per megawatt-hour (MWh), onshore wind at $33, and offshore wind at $78.

New gas-fired generation reached near $100/MWh in some markets, whilst a turbine shortage doubled capital costs for combined-cycle plants in the US.

Clean-tech manufacturing investment halved from a quarterly peak of $70b in 2023 to $35b by the end of 2025, whilst commodity and component prices rose over the same period.

“IRENA’s analysis proves yet again the financial benefits of investing in clean energy as a buffer to a volatile world,” said Murat Kurum, President-Designate for COP31.

Over 90% of utility-scale renewable capacity added in 2025 was cheaper than the lowest-cost fossil alternative.

The report said installed renewables reduced exposure to fuel price shocks, including during the Strait of Hormuz disruption in early 2026.

IRENA said renewable energy costs will continue to decline to 2035, although at a slower pace than in the past decade.