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.
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US renewable energy hit record 28% in April.
WASHINGTON - The amount of electricity generated by renewable resources hit a record 28% in April, a breakthrough number that shows how important renewable energy has become in U.S. energy markets.
"It's a 'Wow' moment," said Peter Kelly-Detwiler, an energy analyst and author of "The Energy Switch," a recent book about the transition to a carbon-free energy economy.
The percentage of U.S. electricity produced by renewable energy from wind, solar and hydroelectric dams has been steadily rising, from 8.6% in April 2001 to this April's 28%. Those numbers were released this week by the U.S. Energy Information Administration, which tracks energy data…
