Gas can’t compete with wind, solar and storage, even in world’s biggest market
Excerpt from this article in Renew Economy:
The latest levellised cost of energy assessment has been released by global investment bank Lazard, confirming – as CSIRO and the market operator have done in Australia – that wind and solar, even “firmed” by battery storage, still beat the fossil fuel competition.
In fact, the Lazard assessment shows that on pretty much any assessment – cost of energy, cost of energy and firming, marginal cost of energy, and cost of capital – wind and solar win easily. And that’s without counting the carbon cost of their competitors, and the impact of the Joe Biden’s Inflation Reduction Act.
“The central findings show, among other things, that even in the face of inflation and supply chain challenges the LCOE (levellised cost of energy) of best-in-class renewables continues to decline,” Lazard notes.
It also says the IRA will have a dramatic impact on the market and will boost more investment in renewables, that storage will grow in scope and importance, and that even hydrogen could play a significant role.
It has no doubt where this will lead: The continued retirement of conventional generation “at pace” – an assessment that is supported by the US Energy Information Administration which predicts
Gas can’t compete with wind, solar and storage, even in world’s biggest market