The costs for solar photovoltaics, wind, and battery storage have dropped markedly since 2010, however, many recent studies and reports around the world have not adequately captured such dramatic decrease. Those costs are projected to decline further in the near future, bringing new prospects for the widespread penetration of renewables and extensive power-sector decarbonization that previous policy discussions did not fully consider. Here we show if cost trends for renewables continue, 62% of China’s electricity could come from non-fossil sources by 2030 at a cost that is 11% lower than achieved through a business-as-usual approach. Further, China’s power sector could cut half of its 2015 carbon emissions at a cost about 6% lower compared to business-as-usual conditions.

Climate change modulates both energy demand and wind and solar energy supply but a globally synthetic analysis of supply–demand match (SDM) is lacking. Here, we use 12 state-of-the-art climate models to assess climate change impacts on SDM, quantified by the fraction of demand met by local wind or solar supply. For energy systems with varying dependence on wind or solar supply, up to 32% or 44% of non-Antarctic land areas, respectively, are projected to experience robust SDM reductions by the end of this century under an intermediate emission scenario. Smaller and more variable supply reduces SDM at northern middle-to-high latitudes, whereas reduced heating demand alleviates or reverses SDM reductions remarkably. By contrast, despite supply increases at low latitudes, raised cooling demand reduces SDM substantially. Changes in climate extremes and climate mean make size-comparable contributions. Our results provide early warnings for energy sectors in climate change adaptation.