Wind, Solar Are Cheapest Power Source In Many Places, BNEF States

Oct 19, 2020 02:02 PM ET
  • Scientist's projections show limitations to the spread of renewables
  • In 5 years, renewables will be cheaper than existing gas

Wind and solar power are the least expensive kind of new power in the majority of the world today.

That's the analysis of BloombergNEF, which forecasts an oblique point in 5 years when it will be extra costly to run an existing coal or gas nuclear power plant than to build new solar or wind ranches.

The findings add to research revealing why renewables are spreading out in many power markets. Last week, the International Energy Agency stated solar is starting to replace coal as the cheapest kind of electricity.

However there is a financial restriction to the spread of those resources of clean power, BNEF's Chief Economist Seb Henbest stated at the study group's yearly conference in London on Monday. There will certainly come a factor in every country that saturation point is gotten to because the technology no longer lowers generation costs compared to running the existing thermal generation fleet.

Those restrictions recommend renewables will obtain no greater than 70% and also 80% of the market for electrical energy generation, depending on local conditions. Also in Europe, which has a few of the most difficult plans encouraging renewables and also inhibiting fossil fuels, wind and solar are not likely to surpass 80% of supply.

That degree of penetration "is away in practically every market we take a look at," Henbest said in a discussion describing the first searchings for of BNEF's New Energy Outlook, which results from be released in full later on this month. "We're not mosting likely to get to these restrictions anytime soon and also we can naturally press past these limitations."