Energy costs: Renewables close in on fossil fuels, challenging on price even now on bulk generation
Coal has been getting the squeeze for years now, but the plunging cost of renewable energy is already starting to give natural gas a run for its money. The implications for the incumbent fossil fuel industry are dire.
“Coal and gas are facing a mounting threat to their position in the world’s electricity generation mix, as a result of the spectacular reductions in cost not just for wind and solar technologies, but also for batteries,” according to a report (https://about.bnef.com/blog/tumbling-costs-wind-solar-batteries-squeezing-fossil-fuels/) from Bloomberg New Energy Finance (BNEF).
The surprising finding from the report is that renewable energy is challenging gas and coal in several ways in electricity markets. BNEF says that fossil fuels are getting hit by renewables in bulk generation, dispatchable generation, and the “provision of ‘flexibility.’”
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Energy costs: Renewables close in on fossil fuels, challenging on price The plunging cost of renewable energy is already starting to give natural gas a run for its money. The implications for the incumbent fossil fuel industry are dire. |