November 23, 2017

TAX WHAT YOU DON'T WANT:

Why Wind and Solar Energy Costs Aren't Dropping Like They Used To : The costs of renewable energy projects aren't coming down like they did a decade ago, but that may not be as bad as it seems. (Travis Hoium (TMFFlushDraw) Nov 17, 2017, Motley Fool)

Falling costs are good for renewables, but costs don't really need to fall to be competitive. Another part of Lazard's report shows that wind and solar energy are actually lower cost than coal, nuclear, diesel, and in some cases natural gas power plants. As a result, a slower pace of cost reductions may not matter for the wind and solar energy industries. They've already won the most important factor: cost per MWh. 

What may change adoption in the future is energy storage, which can make wind and solar energy 24/7 energy sources. According to Lazard, solar plus storage is already competitive at 8.2 cents per kWh ($82 per MWh) for utility-scale projects, so a future with even more renewable energy may not be far off. 

Posted by at November 23, 2017 5:40 AM

  

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