RENEWABLE COSTS CLOSING IN ON NATURAL GAS
London - Tuesday, July 3, 2018
Renewable energy sources are on track to become the most cost-effective sources of power generation, racing ahead of natural gas and coal, finds EI New Energy’s latest Energy Cost Report with updated forecasts out to 2050.
The report, which calculates break-even prices across the lifetime of projects, is an indispensable guide to the competitive standing of various forms of power generation, particularly new investments. It includes an in-depth overview of the findings along with illustrations of the results.
Key highlights inclde:
- Solar photovoltaic power has already reached cost parity with coal and gas under some conditions in some regions, or is ready to do so in the next couple of years. By 2029, solar PV will have reached cost parity with the last category of fossil fuels -- US combined-cycle gas turbines.
- For the first time this year, onshore wind will be cheaper than combined-cycle gas turbines in Europe. Onshore wind was already cheaper than coal in Europe and the US.
- Onshore wind and solar PV are already cheaper than gas when wind or sunlight are abundant -- even in the US where gas is cheaper than anywhere else.
- Offshore wind is taking longer to reach cost parity, but is quickly gaining ground. In two years, offshore wind will be cost-competitive with combined-cycle gas in Europe.
- Concentrated solar power is likewise making progress and is set to reach parity with coal and gas in the 2030s and 2040s.
- Carbon pricing would slightly speed up the timing at which renewables reach cost parity with fossil fuels, but is not necessary for the changes to take place.
Download your complimentary copy of the findings here: http://www2.energyintel.com/l/19202/2018-07-02/bph8y2
EI New Energy, a weekly publication, is a concise source of expert-level insights and data on the global transition from fossil fuels to clean energy. With more than 60 years of expertise, Energy Intelligence, EI New Energy’s publisher, is the leading independent provider of objective insights on the global energy industry.
To discuss the Energy Intelligence New Energy Cost Report, please contact:
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