12 Jul Renewables will be the cheapest form of new power generation by 2020
Renewables will be the cheapest form of new power generation by 2020
Story Via Business Insider
Renewables will be the cheapest form of new power generation by 2020 according to Morgan Stanley. Energy sources like wind and solar will be cheaper than their coal counterparts. In fact they predict that in less than three years, renewables will be the cheapest source of power generation in the world. The bank noted that “The price of solar panels has fallen 50% in less than two years (2016-17).” “We expect the US to exceed the Paris commitment of a 26-28% reduction in US 2005-level carbon emissions by 2025,”
The sudden drop in renewable costs:
The increase in windmill blade lengths has led to an exponential increase in energy output. “On the solar front, Morgan Stanley says there has been oversupply of solar panels, which is pushing production prices down. Solar installation grew 50% last year, but capacity is still 28% above installations.
The bank also see two possible benefits for utility companies, beyond the environmental ones:
“First, the ability to lower customer bills from utilizing low-cost renewables can improve utilities’ regulatory environment and provide related investment opportunities in grid modernization initiatives,” writes the bank.
“Second, for utilities with large, competitive renewable development businesses, investment in renewable energy projects can generate attractive risk-adjusted returns.”