A new energy market analysis shows the average cost of electricity from renewables is already lower than from fossil fuels. And as renewables eat deeper into the ‘market share’ of coal and gas power plants, so the entire economics of fossil fuel power generation will unravel. The cheapest way of generating energy today is to use renewable fuels, and the authors of a new analysis predict that renewables are set to enjoy even more of an advantage within a few years. The study by the Carbon Tracker Initiative says renewable power generation costs are already lower on average worldwide than those of fossil fuels. It couples this with a bold claim that clean energy plants will become more cost-competitive by 2020. The Carbon Tracker authors call for new thinking about what’s happening in the energy markets in the wake of the UN climate talks in Paris last December, which concluded the Paris Agreement on tackling climate change.
Photo Credit John Vlahakis