Plummeting costs for wind, solar and battery technology threaten coal and gas

The economic case for coal and gas power generation faces “a mounting threat” as the costs for wind, solar and battery technology see “spectacular reductions,” new research from Bloomberg New Energy Finance (BNEF) shows, according to a recent article in nawindpower.com. A BNEF report on the levelized cost of electricity (LCOE) “finds that fossil-fuel power is facing an unprecedented challenge in all three roles it performs in the energy mix — the supply of bulk generation, the supply of dispatchable generation and the provision of flexibility,” the article reports. Wind and solar are becoming a bigger threat for bulk generation, as their LCOEs have reduced due to falling capital costs, increased efficiency and competitive auctions. The pairing of wind and solar power with battery storage allows those renewable sources of generation to smooth output, challenging new coal and gas on dispatchable power. In flexibility, stand-alone batteries are starting to compete with open-cycle gas plants on price. For more, read the full article

Renewable Energy