Environment

Renewable energy remains cheapest power builds as new gas plants get pricier

 Renewable power like solar and onshore wind is the least expensive and quickest power generation source to deploy in the United States, even without government subsidies, Lazard said in a report on Monday.

The cost to build new gas-fired power plants, meanwhile, has hit a 10-year high amidst the country’s record electricity use and growing backlogs for turbines and other equipment needed to construct the plants, Lazard, a global financial services firm, said in its annual Levelized Cost of Energy+ analysis.

WHY IT MATTERS

As U.S. electricity use rises from the expansion energy-intensive data centers and the electrification of industries like transportation, many new power plants will need to be built to meet the rising demand after a nearly 20-year lull.

A shift in support of fossil-fired power like coal and gas, over the renewable energy championed by former President Joe Biden, has raised questions about what types of electricity-generating sources will rise to meet the growing demand.

Different power-producing sources have varying implications for the reliability of the electric grid and for climate change.

BY THE NUMBERS

The cost to build a utility-scale solar farm ranged from $38 to $78 per megawatt hour, while costs for natural gas combined cycle plants were $48 to $107 per megawatt hour. Smaller-scale community solar and gas peaker plants, meanwhile, were considerably more expensive.

Source : Reuters

GLOBAL BUSINESS AND FINANCE MAGAZINE

Recent Posts

The future is under the glass

Digital design increasingly confers a competitive edge in global tech markets. This column examines how…

15 hours ago

Generative AI in German firms: Diffusion, costs, and expected economic effects

The novelty and speed of diffusion of generative AI means that evidence on its impact…

15 hours ago

Immigration restrictions and natives’ intergenerational mobility: Evidence from the 1920s US quota acts

Much of the debate over the consequences of immigration restrictions for labour market outcomes of…

15 hours ago

Why inflation may respond faster to big shocks: The rise of state-dependent pricing

Macroeconomic models distinguish time-dependent pricing, where firms change prices at fixed intervals, from state-dependent pricing,…

15 hours ago

Showing up in the Alps: The economic value of Davos

Attending the World Economic Forum in Davos is costly, with estimates ranging between $20,000 and…

15 hours ago

Productivity, firm size, and why distortions hurt developing economies

In many developing countries, productive firms remain too small, while less productive firms are too…

15 hours ago