The profit margin may be lower, but I don’t see how fossil fuels could continue to maintain that margin as renewables undercut them. What utility would run a more expensive generator than a less expensive one, all else equal? Expected profit is higher from a wind farm that can continue to run for decades than a coal plant you have to shutter a partway through its lifespan because new, cheaper energy is available and grid stability functions are taken over by batteries instead of spinning turbines.
Can’t really defend against some backwards legislature passing a law that says, “you can only use coal stoves to heat your house” or something, but it seems like a rear guard action that’s fighting a fundamental shift in how we generate energy. If renewables are cheaper, much of the world will just go with that, which is what will drive most of the transition.
It is definitely a rearguard action, but it is a big enough deal that it has the potential to slow decarbonization enough to push temperatures outside of the range where we’re reasonably assured of a civilization-supporting planet.