New Wind and Solar Power Generation Installations Beating Natural Gas Despite Its Low Cost

Per the EIA, in the US in 2016 wind and solar energy generation accounted for nearly 9,000 MW and 8,000 MW, respectively, of capacity additions while natural gas-fired generation added approximately 7,900 MW.  The cost of natural gas-fired generation is still considerably cheaper, averaging $895/kW versus wind and solar with an average installed cost (nominal dollars) of $1,630/kW and $2,434/kW, respectively. However,  demand for renewable energy has surged from businesses seeking to fill their energy needs from clean energy sources rather than fossil fueled generation.  Additionally, the cost of solar and wind power generation keeps declining year over year making it increasingly more viable for utilities to invest, further driving their growth.

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