New study says entire coal sector will be pricier than Renewables by 2025
According to the report for Energy Innovation, a renewables analysis firm, roughly three-quarters of US coal production is already more expensive than solar and wind energy and coal could be “on its way out” by as early as 2025.
Authors of the report for Energy Innovation used public financial data from the Energy Information Agency (EIA) to estimate the cost of power from coal projects in comparison to wind and solar projects within a 35-mile radius.
The firm discovered that 211 gigawatts of current US coal generation is providing power that is more expensive than that of solar or wind.
“Even without major policy shift we will continue to see coal retire pretty rapidly,” said Mike O’Boyle, the co-author of the report for Energy Innovation, a renewables analysis firm.
“Our analysis shows that we can move a lot faster to replace coal with wind and solar. The fact that so much coal could be retired right now shows we are off the pace.”
“We’ve seen we are at the ‘coal crossover’ point in many parts of the country but this is actually more widespread than previously thought,” O’Boyle said.
“There is a huge potential for wind and solar to replace coal, while saving people money.”
Coal plants have recently experience major set-backs, including rising maintenance costs such as requirements to install pollution controls. Yet, the cost to generate solar and wind energy has dropped significantly as its technologies have seen vast improvements.
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