Listen Up: Utilities Agree That Fossil Fuels Can't Compete Against Renewables
According to Doc Brown, Marty McFlyâs DeLorean needed 1.21 gigawatts to travel back in time. To put this in perspective, new gas power plants are about 0.5 gigawatts, typical large utility scale solar power plants are 0.1 gigawatts, and the average rooftop solar system is 0.000005 gigawatts (5,000 watts). Although it takes a lot of solar panels to generate the power our society needs, solar is now one of the cheapest and cleanest sources. And clean and cheap is now the worldâs preferred power source: in 2013 the world added 143 gigawatts of new renewable energy generating capacity compared to 141 in new plants that burn coal, natural gas, or oil.
Fossil-fueled power plants have not just taken a temporary back seat to renewables – we are witnessing a long term transition in the worldâs energy sources. The price of wind and solar power is on par or less than fossil fuel electricity. Renewable energy prices are on a steady pace to get cheaper, while gas and oil will inevitably go up as supplies are constrained and climate change effects are considered. Coal plants are being decommissioned, and new nuclear plants are effectively doomed — it took 36 years from start to finish for the last nuclear plant to come on line. Compare that to 45 days for a new solar power plant on your homeâs roof, or three years for a utility-scale solar project.
Utilities are installing solar power plants to generate electricity for their customers because solar is cheaper.
But this change in our energy sources will take many years, just as the complete transition from horse and buggy transportation to gas-powered cars took 50 years. As with other large-scale technological changes, customer economics will force the current incumbent energy providers to change (unlikely), or go out of business (more likely). Itâs a virtuous cycle as more customers are satisfied with renewable power generation, and more people are employed in these industries. For more on this inexorable, economics-driven transition to a clean energy economy — and what we need to do to accelerate the transition — please Listen Up to this weekâs Energy Show on Renewable Energy World.