The solar and wind industries in the United States have had a "long-held dream: to produce energy at a cost equal to conventional sources like coal and natural gas" and the dream may be a reality soon. The costs of providing electricity in these nonconventional ways has decreased significantly since 2009, and it is now cheaper in some markets. Several companies in areas like the Great Plains and Southwest, "where wind and sunlight are abundant," are signing power purchase agreements that are cheaper than contracts for natural gas.
Some of the smaller cost is due to subsidies that may not last much longer, but recent research shows that "even without those subsidies, alternative energies can often compete with traditional sources." Companies pass these cost savings onto their customers. There are other costs associated with wind and solar energy, which is intermittent and requires another power source "that can respond to fluctuations in demand."They are also not dispatchable, so it is not likely that these energy sources will completely replace conventional power plants.
But still prices have dropped a substantial amount. In some areas "the price of electricity sold to utilities under long-term contracts from large scale solar projects has fallen by more than 70 percent since 2008." The industries have achieved lower costs through "a combination of new technologies and approaches to financing and operations" but they are not quite ready "to give up on their government supports."It is unclear in this political climate whether federal government support, such as tax credits, will be renewed in the coming years.
Its exciting that renewable energy is becoming competitive. The accessibility will increase its use, which is a step in improving the health of our environment.
Source:http://www.nytimes.com/2014/11/24/business/energy-environment/solar-and-wind-energy-start-to-win-on-price-vs-conventional-fuels.html?hpw&rref=business&action=click&pgtype=Homepage&module=well-region®ion=bottom-well&WT.nav=bottom-well&_r=0
Renewable energy is a great thing for the environment, however it comes at a great cost to the economy. Oil companies act as major players in the economy, and by putting their business in jeopardy because of the option of renewable energy makes for great controversy. I think for now the renewable energy sector will grow at a minuscule level as a result of the power of oil companies. I feel it will take a long time before renewable energy is a major player in the energy sector.
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