New Energy Now Beats The Market

The Economics of Clean Energy Portfolios

May 21, 2018 (Rocky Mountain Institute)

The US power system is one of the largest, most complicated, and most expensive machines in the world, but the grid’s core infrastructure is old and is not aging gracefully…[A]bout half of the existing thermal generator fleet (i.e., coal-, nuclear-, and gas-fired power plants) is likely to retire by 2030, leading to a gap in capacity that will need to be addressed with new investment…US electricity generators may be committing their customers and investors to as much as $1 trillion in future investment and fuel costs through 2030 as they rush to build new gas-fired power plants. Yet advances in renewable energy and distributed energy resources (DERs) offer lower rates and emissions-free energy while delivering all the grid reliability services that new power plants can…

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[A new RMI analysis] finds that, because of recent innovation and rapid cost declines in renewable energy and DER technologies, clean energy portfolios can often be procured at significant net cost savings, with lower risk and zero carbon and air emissions, compared to building a new gas plant. More dramatically, the new-build costs of clean energy portfolios are falling quickly, and likely to beat just the operating costs of efficient gas-fired power plants within the next two decades—a sobering risk for investors and customers in a market with over $100 billion of already announced investment in new gas-fired power plants…” click here for more

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