Solar Is Now 33% Cheaper Than Gas Power in US, Guggenheim Says


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US Renewable Energy Cost Advantage signals cheaper utility-scale solar and onshore wind versus natural gas, with LCOE declines, tax credits, and climate policy cutting electricity costs for utilities and grids across the United States.

 

Key Points

Cheaper solar and wind than natural gas, driven by LCOE drops, tax credits, and policy, lowering US electricity costs.

✅ Utility-scale solar is about one-third cheaper than gas

✅ Onshore wind costs roughly 44 percent less than natural gas

✅ Policy and tax credits accelerate renewables and cut power prices

 

Natural gas’s dominance as power-plant fuel in the US is fading fast as the cost of electricity generated by US wind and solar projects tumbles and as wind and solar surpass coal in the generation mix, 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, a dynamic consistent with falling wholesale power prices in several markets today. 

“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,” as the country moves toward 30% wind and solar and one-fourth of total generation in the near term.

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, even as renewables surpassed coal in 2022 nationwide. Renewables-heavy utilities like NextEra Energy Inc. and Allete Inc. stand to benefit, and companies that can boost spending on wind and solar, as wind, solar and batteries dominate the 2023 pipeline, will also see faster growth, Guggenheim said.
 

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US Crosses the Electric-Car Tipping Point for Mass Adoption

EV Tipping Point signals the S-curve shift to mainstream adoption as new car sales pass 5%, with the US joining Europe and China; charging infrastructure, costs, and supply align to accelerate electric car market penetration.

 

Key Points

The EV tipping point is when fully electric cars reach about 5% of new sales, triggering rapid S-curve adoption.

✅ 5% of new car sales marks start of mass adoption

✅ Follows S-curve seen in phones, LEDs, internet

✅ Barriers ease: charging, cost declines, model availability

 

Many people of a certain age can recall the first time they held a smartphone. The devices were weird and expensive and novel enough to draw a crowd at parties. Then, less than a decade later, it became unusual not to own one.

That same society-altering shift is happening now with electric vehicles, according to a Bloomberg analysis of adoption rates around the world. The US is the latest country to pass what’s become a critical EV tipping point: an EV inflection point when 5% of new car sales are powered only by electricity. This threshold signals the start of mass EV adoption, the period when technological preferences rapidly flip, according to the analysis.

For the past six months, the US joined Europe and China — collectively the three largest car markets — in moving beyond the 5% tipping point, as recent U.S. EV sales indicate. If the US follows the trend established by 18 countries that came before it, a quarter of new car sales could be electric by the end of 2025. That would be a year or two ahead of most major forecasts.

How Fast Is the Switch to Electric Cars?
19 countries have reached the 5% tipping point, and an earlier-than-expected shift is underway—then everything changes

Why is 5% so important? 
Most successful new technologies — electricity, televisions, mobile phones, the internet, even LED lightbulbs — follow an S-shaped adoption curve, with EVs going from zero to 2 million in five years according to market data. Sales move at a crawl in the early-adopter phase, then surprisingly quickly once things go mainstream. (The top of the S curve represents the last holdouts who refuse to give up their old flip phones.)

Electric cars inline tout
In the case of electric vehicles, 5% seems to be the point when early adopters are overtaken by mainstream demand. Before then, sales tend to be slow and unpredictable, and still behind gas cars in most markets. Afterward, rapidly accelerating demand ensues.

It makes sense that countries around the world would follow similar patterns of EV adoption. Most impediments are universal: there aren’t enough public chargers, grid capacity concerns linger, the cars are expensive and in limited supply, buyers don’t know much about them. Once the road has been paved for the first 5%, the masses soon follow.

Thus the adoption curve followed by South Korea starting in 2021 ends up looking a lot like the one taken by China in 2018, which is similar to Norway after its first 5% quarter in 2013. The next major car markets approaching the tipping point this year include Canada, Australia, and Spain, suggesting that within a decade many drivers could be in EVs worldwide. 

 

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Electric cars won't solve our pollution problems – Britain needs a total transport rethink

UK Transport Policy Overhaul signals bans on petrol and diesel cars, rail franchising reform, 15-minute cities, and active travel, tackling congestion, emissions, microplastics, urban sprawl, and public health with systemic, multimodal planning.

 

Key Points

A shift toward EVs, rail reform, and 15-minute cities to reduce emissions, congestion, and health risks.

✅ Phase-out of petrol and diesel car sales by 2030

✅ National rail franchising replaced with integrated operations

✅ Urban design: 15-minute cities, cycling, and active travel

 

Could it be true? That this government will bring all sales of petrol and diesel cars to an end by 2030, even as a 2035 EV mandate in Canada is derided by critics? That it will cancel all rail franchises and replace them with a system that might actually work? Could the UK, for the first time since the internal combustion engine was invented, really be contemplating a rational transport policy? Hold your horses.

Before deconstructing it, let’s mark this moment. Both announcements might be a decade or two overdue, but we should bank them as they’re essential steps towards a habitable nation.

We don’t yet know exactly what they mean, as the government has delayed its full transport announcement until later this autumn. But so far, nothing that surrounds these positive proposals makes any sense, and the so-called EV revolution often proves illusory in practice.

If the government has a vision for transport, it appears to be plug and play. We’ll keep our existing transport system, but change the kinds of vehicles and train companies that use it. But when you have a system in which structural failure is embedded, nothing short of structural change will significantly improve it.

A switch to electric cars will reduce pollution, though the benefits depend on the power mix; in Canada, Canada’s grid was 18% fossil-fuelled in 2019, for example. It won’t eliminate it, as a high proportion of the microscopic particles thrown into the air by cars, which are highly damaging to our health, arise from tyres grating on the surface of the road. Tyre wear is also by far the biggest source of microplastics pouring into our rivers and the sea. And when tyres, regardless of the engine that moves them, come to the end of their lives, we still have no means of properly recycling them.

Cars are an environmental hazard long before they leave the showroom. One estimate suggests that the carbon emissions produced in building each one equate to driving it for 150,000km. The rise in electric vehicle sales has created a rush for minerals such as lithium and copper, with devastating impacts on beautiful places. If the aim is greatly to reduce the number of vehicles on the road, and replace those that remain with battery-operated models, alongside EV battery recycling efforts, then they will be part of the solution. But if, as a forecast by the National Grid proposes, the current fleet is replaced by 35m electric cars, a University of Toronto study warns they are not a silver bullet, and we’ll simply create another environmental disaster.

Switching power sources does nothing to address the vast amount of space the car demands, which could otherwise be used for greens, parks, playgrounds and homes. It doesn’t stop cars from carving up community and turning streets into thoroughfares and outdoor life into a mortal hazard. Electric vehicles don’t solve congestion, or the extreme lack of physical activity that contributes to our poor health.

So far, the government seems to have no interest in systemic change. It still plans to spend £27bn on building even more roads, presumably to accommodate all those new electric cars. An analysis by Transport for Quality of Life suggests that this road-building will cancel out 80% of the carbon savings from a switch to electric over the next 12 years. But everywhere, even in the government’s feted garden villages and garden towns, new developments are being built around the car.

Rail policy is just as irrational, even though lessons from large electric bus fleets offer cleaner mass transit options. The construction of HS2, now projected to cost £106bn, has accelerated in the past few months, destroying precious wild places along the way, though its weak business case has almost certainly been destroyed by coronavirus.

If one thing changes permanently as a result of the pandemic, it is likely to be travel. Many people will never return to the office. The great potential of remote technologies, so long untapped, is at last being realised. Having experienced quieter cities with cleaner air, few people wish to return to the filthy past.

Like several of the world’s major cities, our capital is being remodelled in response, though why electric buses haven’t taken over remains a live question. The London mayor – recognising that, while fewer passengers can use public transport, a switch to cars would cause gridlock and lethal pollution – has set aside road space for cycling and walking. Greater Manchester hopes to build 1,800 miles of protected pedestrian and bicycle routes.

Cycling to work is described by some doctors as “the miracle pill”, massively reducing the chances of early death: if you want to save the NHS, get on your bike. But support from central government is weak and contradictory, and involves a fraction of the money it is spending on new roads. The major impediment to a cycling revolution is the danger of being hit by a car.

Even a switch to bicycles (including electric bikes and scooters) is only part of the answer. Fundamentally, this is not a vehicle problem but an urban design problem. Or rather, it is an urban design problem created by our favoured vehicle. Cars have made everything bigger and further away. Paris, under its mayor Anne Hidalgo, is seeking to reverse this trend, by creating a “15-minute city”, in which districts that have been treated by transport planners as mere portals to somewhere else become self-sufficient communities – each with their own shops, parks, schools and workplaces, within a 15-minute walk of everyone’s home.

This, I believe, is the radical shift that all towns and cities need. It would transform our sense of belonging, our community life, our health and our prospects of local employment, while greatly reducing pollution, noise and danger. Transport has always been about much more than transport. The way we travel helps to determine the way we live. And at the moment, locked in our metal boxes, we do not live well.

 

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SEA To Convert 10,000 US School Buses To Electricity

SEA Electric school bus conversions bring EV electrification to Type A and Type C fleets, adding V2G, smart charging, battery packs, and zero-emissions performance while extending service life with cost-effective retrofits across US school districts.

 

Key Points

Retrofit EV drivetrains for Type A and C buses, adding V2G and smart charging to cut emissions and costs.

✅ Converts 10,000 Type A and C school buses over five years

✅ Adds V2G, smart charging, and fleet battery management

✅ Cuts diesel fumes, maintenance, and total cost of ownership

 

Converting a Porsche 356C to electric power is a challenge. There’s precious little room for batteries, converters, and such. But converting a school bus? That’s as easy as falling off a log, even if adoption challenges persist in the sector today. A bus has acres of space for batteries and the electronics need to power an electric motor.

One of the dumbest ideas human beings ever came up with was sealing school children inside a diesel powered bus for the trip to and from school. Check out our recent article on the impact of fossil fuel pollution on the human body. Among other things, fine particulates in the exhaust gases of an internal combustion engine have been shown to lower cognitive function. Whose bright idea was it to make school kids walk through a cloud of diesel fumes twice a day when those same fumes make it harder for them to learn?

Help may be on the way, as lessons from the largest e-bus fleet offer guidance for scaling. SEA Electric, a provider of electric commercial vehicles originally from Australia and now based in Los Angeles has stuck a deal with Midwest Transit Equipment to convert 10,000 existing school buses to electric vehicles over the next five years. Midwest will provide the buses to be converted to the SEA Drive propulsion system. SEA Electric will complete the conversions using its “extensive network of up-fitting partners,” Nick Casas, vice president of sales and marketing for SEA Electric, says in a press release.

After the conversions are completed, the electric buses will have vehicle to grid (V2G) capability that will allow them to help balance the local electrical grid, where state power grids face new demands, and “smart charge” when electricity prices are lowest. The school buses to be converted are of the US school bus class Type A  or Type C. Type A is the smallest US school bus with a length of 6 to 7.5 metres and is based on a van chassis. The traditional Type C school buses are built on truck architectures.

SEA Electric says that the conversion will extend the life of the buses by more than ten years, with early deployments like B.C. electric school buses demonstrating real-world performance, and that two to three converted buses can be had for the price of one new electric bus. Mike Menyhart, chief strategy officer at SEA Electric says, “The secondary use of school buses fitted with all-electric drivetrains makes a lot of sense. It keeps costs down, opens up considerable availability, creates green jobs right here in the US, all while making a difference in the environment and the health of the communities we serve.”

According to John McKinney, CEO of Midwest Transport Equipment, the partnership with SEA Electric will ensure that it can respond more quickly to customers’ needs as policies like California's 2035 school-bus mandate accelerate demand in key markets. “As the industry moves towards zero emissions we are positioned well with our SEA Electric partnership to be a leader of the electrification movement.”

According to Nick Casas, SEA Electric will plans to expand it operations to the UK soon, and intends to do business in six countries in Europe, including Germany, in the years to come. SEA says it will have delivered more than 500 electric commercial vehicles in 2021 and plans to put more than 15,000 electric vehicles on the road by the end of 2023. Just a few weeks ago, SEA Electric announced an order for 1,150 electric trucks based on the Toyota Hino cargo van for the GATR company of California, highlighting truck fleet power needs that utilities must plan for today.

Electric school buses make so much sense. No fumes to fog young brains, lower maintenance costs, and lower fuel costs are all pluses, especially as bus depot charging hubs scale across markets, adding resilience. Extending the service life of an existing bus by a decade will obviously pay big dividends for school bus fleet operators like MTE. It’s a win/win/win situation for all concerned, with the possible exception of diesel mechanics. But the upside there is they can be retrained in how to maintain electric vehicles, a skill that will be in increasing demand as the EV revolution picks up speed.

 

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America's Largest Energy Customers Set a Bold New Ambition to Achieve a 90% Carbon-free U.S. Electricity System by 2030 and Accelerate Clean Energy Globally

Clean Energy Buyers Alliance 2030 Goal targets a 90% carbon-free U.S. grid, accelerating power-sector decarbonization via corporate renewable energy procurement, market and policy reforms, and customer demand to enable net-zero electrification across industries.

 

Key Points

The Alliance's plan to reach a 90% carbon-free U.S. electricity system by 2030 via customer-driven markets and policy.

✅ Corporate buyers scale renewable PPAs and aggregation

✅ Market and policy reforms unlock clean power access

✅ Goal aligns with net-zero and widespread electrification

 

The Clean Energy Buyers Association (CEBA) and the Clean Energy Buyers Institute (CEBI), which together make up the Clean Energy Buyers Alliance, have announced a profound new aspiration for impact: a 90% carbon-free U.S. electricity system by 2030 and a global community of energy customers driving the global energy transition forward.

Alongside the two organizations’ bold new vision of the future – customer-driven clean energy for all – the Alliance will super-charge the work of its predecessor organizations, the Renewable Energy Buyers Alliance (REBA) and the REBA Institute, which represent the most iconic global companies with more than $6 trillion dollars in annual revenues and 14 million employees.

“This is the decisive decade for climate action and especially for decarbonization of the power sector,” said Miranda Ballentine, CEO of CEBA and CEBI. “To achieve a net-zero economy worldwide by 2050, the United States must lead. And the power sector must accelerate toward a 2030 timeline as electrification of other industries will be driving up power use.”

In the U.S. alone, more than 60% of electricity is consumed by the commercial and industrial sectors. Institutional energy customers have accelerated the deployment of clean energy solutions over the last 10 years to achieve increasingly ambitious greenhouse gas reduction targets, even as a federal coal plan remains under debate, and further cement the critical role of customers in decarbonizing the energy system. The Clean Energy Buyers Association Deal Tracker shows that 7.9 GW of new corporate renewable energy project announcements in the first three quarters of this year are equivalent to 40% of all new carbon free energy capacity added in the U.S. so far in 2021.

“With our new vision of customer-driven clean energy for all, we are also unveiling new organization brands,” Ballentine continued. “I’m excited to announce that REBA will become CEBA—the Clean Energy Buyers Association—and will focus on activating our community of energy customers and partners to deploy market and policy solutions for a carbon-free energy system. The REBA Institute will become the Clean Energy Buyers Institute (CEBI) and will focus on solving the toughest market and policy barriers to achieving a carbon-free energy system in collaboration with policymakers, leading philanthropies, and energy market stakeholders. Together, CEBA and CEBI will make up the new Clean Energy Buyers Alliance.”

To decarbonize the U.S. electricity system 90% by 2030, a goal aligned with California's 100% carbon-free mandate efforts, and to activate a community of customers driving clean energy around the world, the Clean Energy Buyers Alliance will drive three critical transformations to:

Unlock markets so that energy customers can use their buying power and market-influence, building on a historic U.S. climate deal this year, to accelerate electricity decarbonization.

Catalyze communities of energy customers to actively choose clean energy through Mission Innovation collaborations and to do more together than they could on their own.

Decarbonize the grid for all, since not every energy customer can or will use their buying power to choose clean energy.

“The Clean Energy Buyers Alliance is setting the bar for what energy buyers, utilities and governments should and need to be doing to achieve a carbon-free energy future,” said Michael Terrell, CEBA board chair and Director of Energy at Google. “This ambitious approach is a critical step in tackling climate change. The time for meaningful climate action is now and we must collectively be bolder and more ambitious in our actions in both the public and private sectors – starting today.”

This new vision of customer-driven clean energy for all is an unprecedented opportunity for every member of the Clean Energy Buyers Alliance community – from energy customers to providers to manufacturers – to all parties up and down the energy supply chain to lead the evolution of a new energy economy, which will require incentives to double investment in clean energy to rise to $4 trillion by 2030.

 

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World Bank helps developing countries wind spurt

World Bank Offshore Wind Investment drives renewables and clean energy in developing countries, funding floating turbines and shallow-water foundations to replace fossil fuels, expand grids, and scale climate finance across Latin America, Africa, and Asia.

 

Key Points

A World Bank program funding offshore wind to speed clean power, cut fossil fuels, and expand grids in emerging markets.

✅ US$80bn to 565 onshore wind projects since 1995

✅ Pilot funds offshore wind in Asia, Africa, Latin America

✅ Floating turbines and shallow-water foundations enable deep resources

 

Europe and the United States now accept onshore wind power as the cheapest way to generate electricity, and U.S. lessons from the U.K. are informing policy discussions. But this novel technology still needs subsidising before some developing countries will embrace it. Enter the World Bank.

A total of US$80 billion in subsidies from the Bank has gone over 25 years to 565 developing world onshore wind projects, to persuade governments to invest in renewables rather than rely on fossil fuels.

Central and Latin American countries have received the lions share of this investment, but the Asia Pacific region and Eastern Europe have also seen dozens of Bank-funded developments. Now the fastest-growing market is in Africa and the Middle East, where West African hydropower support can complement variable wind resources.

But while continuing to campaign for more onshore wind farms, the World Bank in 2019 started encouraging target countries to embrace offshore wind as well. This uses two approaches: turbines in shallow water, which are fixed to the seabed, and also a newer technology, involving floating turbines anchored by cables at greater depth.

The extraordinary potential for offshore wind, which is being commercially developed very fast in Europe, including the UK's offshore expansion, China and the U.S. offshore wind sector today as well, is now seen by the Bank as important for countries like Vietnam which could harness enough offshore wind power to provide all its electricity needs.

Other countries it has identified with enormous potential for offshore wind include Brazil, Indonesia, India, the Philippines, South Africa and Sri Lanka, all of them countries that need to keep building more power stations to connect every citizen to the national grid.

The Bank began investing in wind power in 1995, with its spending reaching billions of dollars annually in 2011. The biggest single recipient has been Brazil, receiving US$24.2 bn up to the end of 2018, 30 per cent of the total the Bank has invested worldwide.

Many private companies have partnered with the Bank to build the wind farms. The biggest single beneficiary is Enel, the Italian energy giant, which has received US$6.1 bn to complete projects in Brazil, Mexico, South Africa, Romania, Morocco, Bulgaria, Peru, and Russia.

Among the countries now benefitting from the Banks continuing onshore wind programme are Egypt, Morocco, Senegal, Jordan, Vietnam, Thailand, Indonesia and the Philippines.

Offshore wind now costs less than nuclear power, and global costs have fallen enough to compete in most countries with fossil fuels. Currently the fastest-growing industry in the world, it continued to grow despite Covid-19 across most markets.

Persistent coal demand

Particularly in Asia, some countries are continuing to burn large quantities of coal and are considering investing in yet more fossil fuel generation unless they can be persuaded that renewables are a better option, with an offshore wind $1 trillion outlook underscoring the scale.

Last year the World Bank began a pilot scheme to explore funding investment in offshore wind in these countries. Launching the scheme Riccardo Puliti, a senior director at the Bank, said: Offshore wind is a clean, reliable and secure source of energy with massive potential to transform the energy mix in countries that have great wind resources.

We have seen it work in Europe we can now make use of global experience to scale up offshore wind projects in emerging markets.

Using data from the Global Wind Atlas, the Bank calculated that developing countries with shallow waters like India, Turkey and Sri Lanka had huge potential with fixed turbines, while others the Philippines and South Africa, for example would need floating foundations to reach greater depths, up to 1,000 metres.

For countries like Vietnam, with a mix of shallow and deep water, wind power could solve their entire electricity needs. In theory offshore wind power could produce ten times the amount of electricity that the country currently gets from all its current power stations, the Bank says.

 

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ABB claims its Terra 360 is the "world's fastest electric car charger"

ABB Terra 360 EV Charger offers 360 kW DC fast charging, ultra-fast top-ups, and multi-vehicle capability for Ionity, Electrify America, and depot installations, adding 100 km in under 3 minutes with compact footprint.

 

Key Points

ABB's Terra 360 is a 360 kW DC fast charger for EVs, powering up to four vehicles simultaneously with a compact footprint.

✅ 360 kW DC output; adds 100 km in under 3 minutes

✅ Charges up to four vehicles at once; small footprint

✅ Rolling out in Europe 2021; US and beyond in 2022

 

Swiss company ABB, which supplies EV chargers to Ionity and Electrify America amid intensifying charging network competition worldwide, has unveiled what it calls the "world's fastest electric car charger." As its name suggests, the Terra 360 has a 360 kW capacity, and as electric-car adoption accelerates, it could fully charge a (theoretical) EV in 15 minutes. More realistically, it can charge four vehicles simultaneously, saving space at charging stations. 

The Terra 360 isn't the most powerful charger by much, as companies like Electrify America, Ionity and EVGo have been using 350 kW chargers manufactured by ABB and others since at least 2018. However, it's the "only charger designed explicitly to charge up to four vehicles at once," the company said. "This gives owners the flexibility to charge up to four vehicles overnight or to give a quick refill to their EVs in the day." They also have a relatively small footprint, allowing installation in small depots or parking lots, helping as US automakers plan 30,000 new chargers nationwide. 

There aren't a lot of EVs that can handle that kind of charge. The only two approaching it are Porsche's Taycan, with 270 kW of charging capacity and the new Lucid Air, which allows for up to 300 kW fast-charging. Tesla's Model 3 and Model Y EVs can charge at up to 250 kW, while Hyundai's Ioniq 5 is rated for 232 kW DC fast charging in optimal conditions. 

Such high charging levels aren't necessarily great for an EV's battery, and the broader grid capacity question looms as the American EV boom gathers pace. Porsche, for instance, has a battery preservation setting on its Plug & Charge Taycan feature that lowers power to 200 kW from the maximum 270 kW allowed — so it's essentially acknowledging that faster charging degrades the battery. On top of that, extreme charging levels don't necessarily save you much time, as Car and Driver found. Tesla recently promised to upgrade its own Supercharger V3 network from 250kW to 300kW, with energy storage solutions emerging to buffer high-power sites. 

ABB's new chargers will be able to add 100 km (62 miles) of range in less than three minutes. They'll arrive in Europe by the end of the year and start rolling out in the US and elsewhere in 2022.

 

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