IELTS Reading Practice: Impact of Renewable Energy on Reducing Global Energy Costs

As an experienced IELTS instructor, I’m excited to share with you a comprehensive IELTS Reading practice test focusing on the Impact Of Renewable Energy On Reducing Global Energy Costs. This topic is not only relevant for your IELTS preparation but also crucial for understanding the future of global energy markets.

Introduction

The IELTS Reading test is designed to assess your reading skills and understanding of complex texts. Today, we’ll explore a set of passages related to the impact of renewable energy on reducing global energy costs. This practice test will help you familiarize yourself with the types of questions you might encounter in the actual IELTS exam while providing valuable insights into this important topic.

IELTS Reading Practice Test

Passage 1 (Easy Text)

The Rise of Renewable Energy

Renewable energy has become an increasingly important topic in recent years. As the world grapples with climate change and the need to reduce greenhouse gas emissions, many countries are turning to renewable energy sources as a solution. These sources, which include solar, wind, hydroelectric, and geothermal power, offer a clean alternative to fossil fuels.

One of the most significant advantages of renewable energy is its potential to reduce global energy costs. While the initial investment in renewable infrastructure can be substantial, the long-term benefits are becoming increasingly clear. As technology improves and economies of scale come into play, the cost of generating electricity from renewable sources has been steadily declining.

Solar power, in particular, has seen dramatic cost reductions. The price of solar panels has fallen by more than 80% over the past decade, making solar energy competitive with traditional fossil fuels in many parts of the world. Wind power has also become more cost-effective, with larger turbines and more efficient designs driving down the cost per kilowatt-hour.

These cost reductions have significant implications for global energy markets. As renewable energy becomes cheaper, it becomes more attractive to both governments and private investors. This increased investment leads to further technological improvements and cost reductions, creating a positive feedback loop that accelerates the adoption of renewable energy worldwide.

solar panel price trend

Questions 1-5

Do the following statements agree with the information given in the passage?

Write:

TRUE if the statement agrees with the information
FALSE if the statement contradicts the information
NOT GIVEN if there is no information on this

1. Renewable energy sources are considered a clean alternative to fossil fuels.
2. The initial cost of renewable energy infrastructure is low.
3. Solar panel prices have decreased by more than 80% in the last ten years.
4. Wind power has become less cost-effective over time.
5. Increased investment in renewable energy leads to technological improvements.

Questions 6-10

Complete the sentences below.

Choose NO MORE THAN TWO WORDS from the passage for each answer.

6. Renewable energy sources offer a solution to reduce __ __ emissions.
7. The cost of generating electricity from renewable sources has been __ __.
8. Larger turbines and more efficient designs have made wind power more __ __.
9. As renewable energy becomes cheaper, it becomes more attractive to governments and __ __.
10. The adoption of renewable energy worldwide is accelerated by a positive __ __.

Passage 2 (Medium Text)

The Economic Impact of Renewable Energy

The transition to renewable energy is not just an environmental imperative; it’s increasingly becoming an economic one. As the costs of renewable technologies continue to plummet, they are reshaping the global energy landscape and having a profound impact on energy economics worldwide.

One of the most significant economic impacts of renewable energy is its potential to reduce energy costs on a global scale. This effect is driven by several factors. Firstly, the marginal cost of renewable energy is extremely low. Once a solar panel or wind turbine is installed, the cost of generating each additional unit of electricity is minimal, as there are no fuel costs involved. This contrasts sharply with fossil fuel power plants, which require a constant input of coal, oil, or gas to operate.

Secondly, renewable energy technologies are benefiting from rapid technological advancements and economies of scale. As more solar panels and wind turbines are manufactured and installed, production costs decrease, and efficiency improves. This trend is exemplified by Swanson’s Law, which observes that the price of solar photovoltaic modules tends to drop 20% for every doubling of cumulative shipped volume.

The impact of these cost reductions is already being felt in many parts of the world. In an increasing number of markets, new renewable energy projects are now cheaper than new fossil fuel power plants. In some cases, it’s even becoming more economical to build new renewable energy capacity than to continue operating existing fossil fuel plants.

This shift is having far-reaching consequences for global energy markets. Countries that invest heavily in renewable energy are seeing significant reductions in their energy costs. For example, Denmark, which generates more than half of its electricity from wind and solar power, has some of the lowest industrial electricity prices in Europe. Similarly, Texas, a leader in wind power in the United States, has seen its wholesale electricity prices drop dramatically as wind generation has increased.

The economic benefits of renewable energy extend beyond just reducing energy costs. The renewable energy sector is becoming a significant source of job creation. According to the International Renewable Energy Agency (IRENA), the sector employed 11 million people globally in 2018, a figure that is expected to rise to 42 million by 2050. These jobs span a wide range of skills and sectors, from research and development to manufacturing, installation, and maintenance.

Moreover, the shift to renewable energy can help countries reduce their dependence on imported fossil fuels, improving their energy security and reducing their exposure to volatile international energy markets. This can have significant macroeconomic benefits, particularly for countries that are currently heavily dependent on energy imports.

Questions 11-14

Choose the correct letter, A, B, C, or D.

11. According to the passage, what is one of the main economic impacts of renewable energy?
    A) Increasing global energy demand
    B) Reducing global energy costs
    C) Stabilizing fossil fuel prices
    D) Increasing government subsidies

12. What does Swanson’s Law describe?
    A) The increase in wind turbine efficiency
    B) The decrease in fossil fuel consumption
    C) The reduction in solar panel prices as production increases
    D) The rise in renewable energy jobs

13. In the example given, why does Denmark have low industrial electricity prices?
    A) Due to government subsidies
    B) Because of its reliance on fossil fuels
    C) Thanks to its high use of wind and solar power
    D) As a result of importing cheap electricity

14. According to IRENA, how many jobs is the renewable energy sector expected to provide by 2050?
    A) 11 million
    B) 22 million
    C) 32 million
    D) 42 million

Questions 15-20

Complete the summary below.

Choose NO MORE THAN TWO WORDS from the passage for each answer.

The economic impact of renewable energy is significant. Once installed, the 15) __ __ of generating electricity from renewables is very low. Renewable technologies are also benefiting from technological advancements and 16) __ __ __. In many markets, new renewable projects are now cheaper than 17) __ __ power plants. Countries investing in renewables are seeing reductions in their 18) __ __. The renewable sector is also creating many jobs across various sectors. Furthermore, shifting to renewables can help countries reduce dependence on 19) __ __ __, improving their 20) __ __ and reducing exposure to volatile markets.

Passage 3 (Hard Text)

The Global Implications of Renewable Energy’s Cost Reduction

The precipitous decline in the cost of renewable energy technologies is reshaping the global energy landscape in profound and far-reaching ways. This transformation is not merely a matter of substituting one energy source for another; it represents a fundamental shift in the economics of energy production and consumption, with ramifications that extend far beyond the energy sector itself.

The most immediate and obvious impact of this cost reduction is on the competitiveness of renewable energy sources relative to traditional fossil fuels. In an increasing number of markets, wind and solar power have achieved grid parity, meaning they can generate electricity at a levelized cost that is less than or equal to the price of purchasing power from the electricity grid. This milestone has been reached far earlier than many experts predicted, driven by a combination of technological improvements, economies of scale, and learning-by-doing effects.

The implications of this shift are profound. As renewable energy becomes the cheapest source of new electricity generation in more and more parts of the world, it is fundamentally altering investment patterns in the energy sector. Globally, investment in renewable energy capacity has outpaced investment in fossil fuel power plants for several years running. This trend is expected to accelerate as the cost advantage of renewables continues to grow.

However, the impact of renewable energy’s cost reduction extends far beyond the realm of electricity generation. It is catalyzing a broader transformation of the entire energy system. For instance, the falling cost of renewable electricity is making the electrification of other sectors of the economy increasingly attractive. The transport sector, in particular, is on the cusp of a major transition, with electric vehicles poised to displace internal combustion engines as battery costs fall and charging infrastructure expands.

Moreover, cheap renewable electricity is opening up new possibilities for the production of green hydrogen through electrolysis. This could potentially provide a zero-carbon alternative for industries that are difficult to electrify directly, such as steel production and long-distance shipping. The prospect of abundant, low-cost green hydrogen could also revolutionize global energy geopolitics, potentially shifting power away from traditional oil and gas exporters towards countries with abundant renewable resources.

The global transition to renewable energy is also having significant macroeconomic impacts. Countries that move quickly to adopt renewable energy technologies stand to benefit from reduced energy costs, improved energy security, and the creation of new industries and job opportunities. Conversely, countries that remain heavily dependent on fossil fuel extraction and export may face significant economic challenges as global demand for these resources declines.

It’s important to note, however, that the transition to a renewable energy-based system is not without challenges. The intermittent nature of wind and solar power necessitates significant investments in energy storage and grid infrastructure to ensure reliable power supply. Additionally, the rapid deployment of renewable energy technologies has raised concerns about the environmental and social impacts of mineral extraction for battery production and the land use implications of large-scale solar and wind farms.

Despite these challenges, the momentum behind the renewable energy transition appears unstoppable. The combination of falling costs, technological improvements, and growing concern about climate change is driving a fundamental reshaping of the global energy system. As this transition accelerates, it promises to have profound implications not just for how we produce and consume energy, but for global economics, geopolitics, and the future of our planet.

Questions 21-26

Complete the sentences below.

Choose NO MORE THAN TWO WORDS from the passage for each answer.

21. The term __ __ refers to the point at which renewable energy can generate electricity at a cost equal to or less than the price of grid electricity.

22. Investment in renewable energy capacity has surpassed investment in __ __ __ for several consecutive years.

23. The decreasing cost of renewable electricity is making the __ of other economic sectors more appealing.

24. __ __ produced through electrolysis could provide a zero-carbon alternative for hard-to-electrify industries.

25. Countries that quickly adopt renewable energy technologies may benefit from reduced energy costs and improved __ __.

26. The __ __ of wind and solar power requires significant investments in energy storage and grid infrastructure.

Questions 27-30

Do the following statements agree with the claims of the writer in the passage?

Write:

YES if the statement agrees with the claims of the writer
NO if the statement contradicts the claims of the writer
NOT GIVEN if it is impossible to say what the writer thinks about this

27. The cost reduction in renewable energy was anticipated by most experts to occur at this pace.

28. The electrification of the transport sector is being facilitated by falling battery costs and expanding charging infrastructure.

29. The transition to renewable energy will completely eliminate the need for fossil fuels in all industries.

30. The environmental and social impacts of renewable energy technology deployment are insignificant compared to those of fossil fuels.

Answer Key

Passage 1

1. TRUE
2. FALSE
3. TRUE
4. FALSE
5. TRUE
6. greenhouse gas
7. steadily declining
8. cost-effective
9. private investors
10. feedback loop

Passage 2

11. B
12. C
13. C
14. D
15. marginal cost
16. economies of scale
17. fossil fuel
18. energy costs
19. imported fossil fuels
20. energy security

Passage 3

21. grid parity
22. fossil fuel plants
23. electrification
24. Green hydrogen
25. energy security
26. intermittent nature
27. NO
28. YES
29. NOT GIVEN
30. NO

This IELTS Reading practice test has provided you with valuable insights into the impact of renewable energy on reducing global energy costs. Remember to practice regularly and familiarize yourself with various question types to improve your performance in the actual IELTS exam.

For more IELTS preparation resources, you might find these articles helpful:

• Renewable Energy Tax Incentives
• The Role of Renewable Energy in Mitigating Climate Risk
• Impact of Renewable Energy on Sustainable Tourism

Good luck with your IELTS preparation!