Solar Is Now 33% Cheaper Than Gas Power in US, Guggenheim Says
WASHINGTON -
Natural gas’s dominance as power-plant fuel in the US is fading fast as the cost of electricity generated by wind farms and solar projects tumbles, according to Guggenheim Securities.
Utility-scale solar is now about a third cheaper than gas-fired power, while onshore wind is about 44% less expensive, Guggenheim analysts led by Shahriar Pourreza said Monday in a note to clients.
“Solar and wind now present a deflationary opportunity for electric supply costs,” the analysts said, which “supports the case for economic deployment of renewables across the US.”
Gas prices have surged amid a global supply crunch after Russia’s invasion of Ukraine, while tax-credit extensions and sweeping US climate legislation have brought down the cost of wind and solar. Renewables-heavy utilities like NextEra Energy Inc. and Allete Inc. stand to benefit, and companies that can boost spending on wind and solar will also see faster growth, Guggenheim said.
Related News
Canada's race to net-zero and the role of renewable energy
OTTAWA - As the UN climate talks draw near, Canada has enormous work left to do to reach its goals of reducing greenhouse gas emissions. Collectively, Canadians have to cut overall greenhouse-gas emissions by 40 to 45 per cent below 2005 levels by 2030 and achieve net-zero emissions across the economy by 2050.
And whereas countries like the U.K. have dramatically slashed their emissions levels, Canada's one of the few nations where emissions keep skyrocketing, and where fossil fuel extraction keeps increasing every year despite our climate targets.
Changes in national emissions and fossil fuel extraction since 1950, for G7 nations plus…
