According to a recent report, onshore wind and solar energy undertakings display the potency to generate electricity more economically than fossil fuel plants, along with other green technologies that are economical over conventional fuels. As per a cost analysis presented by the International Renewable Energy Agency, renewable power generation technologies that are currently used commercially, are likely to be within the cost range of fossil fuel-fired ventures. Not only this, most green technologies are likely to be at the lower end of the cost spectrum of fossil fuel operations or may even undercut fossil fuels.
Participation of Veteran Energy Developers Aids Expansion of Green Energy Technologies
The analysis reveals renewables to cost from 3 to 10 US cents by 2020 for every kilowatt hour energy generated, while currently the cost incurred for power generation using fossil fuel ranges from five to 17 US cents for every kilowatt hour. This is likely to bring about a paradigm shift in the energy scenario. The turn towards renewables is not only indicative of an energy conscious decision, but is also an economic one.
While technological advancements have played a key role for low prices of green energy ventures, the participation of experienced project developers has helped the growth of this sector leading to increased competition as well.
The best solar PV and onshore wind projects in the U.S. are expected to cost three cents or less per kilowatt hour by next year. However, solar and wind are not the only sectors gaining traction. The study revealed that new geothermal and bioenergy projects that came into place in 2017 were estimated at around seven US cents for every kilowatt hour.