Renewables are already at grid parity (in a few places, with more to come)

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By: SGN Staff

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Quick Take: Until recently, we've been asking utilities and their customers to consider renewables because they were "the right thing to do." Now there's an even more powerful reason, according to author RP Siegel – they are cheaper than fossil fuels. As you can read in the full article, that's true today in a few places, but will be true in many places by 2016.

 

As grid parity becomes more and more common, it will cause major changes to utility business models and technology platforms.  - By Jesse Berst

 

Are Renewables Ready for Prime Time? It Depends Where You Live

 

When President Barack Obama announced his Climate Action Plan, he gave broad executive powers to the EPA to establish carbon emission standards for both new and existing power plants. He also increased funding for clean energy, while setting a goal to double our level of renewable energy generation by the year 2020. There will also be new vehicle fuel economy standards developed to take effect after 2018 and numerous other measures to reduce the use of fossil fuels.

 

Of course, critics claim these actions will hurt the economy by raising the price of energy, which will in turn put a drag on the recovery and lead to more job losses. Leaving the question of green jobs aside for the moment, let’s take a look at the economics of switching to renewable energy.