Utilities Scramble To Catch Up With Stunning Fall In Renewable Energy Costs

[ad_1]

Utilities Scramble To Catch Up With Stunning Fall In Renewable Energy Costs

Renewable energy is disrupting electricity markets worldwide. The pace of this change has surprised almost everyone, and indeed would have been difficult to imagine just a few years ago.

From Europe to Asia, from the Americas to Africa, wholesale electricity prices are being pushed down by the rise of renewable generation, which has no fuel costs, a disruptive zero marginal cost of production and whose developers can now consistently outbid fossil fuel-based generation.

IEEFA has released a new report (at http://ieefa.org/wp-content/uploads/2017/10/IEEFA-Global-Utilities-in-Transition-11-Case-Studies-October-2017.pdf) that documents the gathering momentum of this trend, and how the impact of renewables on electricity prices is a key driver of this change.

Crucially, renewables need only capture a relatively small market share for disruption to occur, and to accelerate.

While it may take decades yet for renewables to become the dominant form of generation globally, their presence today is permanent, economically rational and their advance inevitable. The combined loss in market capitalization of the underperforming utilities covered in the report from 2007-2016 ttotalledUS$185 billion.

See http://bit.ly/2z4DpbJ

[ad_2]

Source link

Reshare Article To