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Renewable Energy Revolution is happening faster than expected

Two Big Trends Will Fuel The Renewable Energy Boom For Years, Business Insider 20 Sep 14 ELENA HOLODNY THE RENEWABLE ENERGY REVOLUTION IS HAPPENING FASTER THAN MANY EXPECTED.

According to recent report from Citi Research, renewables will continue their market share grabs from coal and gas for two reasons.

First, renewables are rapidly becoming cost-effective, and second, environmental restrictions are becoming an increasingly high hurdle.

Renewables Are Getting Cheaper

Thanks to tech advances, the cost of renewables is finally dropping to affordable levels, which is allowing them to proliferate, according to Citi.

“Costs for solar and wind energy are falling rapidly, with learning rates of around 30% for solar and 7.4% for wind,” the report states.

Wind power has already achieved cost parity with the most expensive coal power plants in Europe (slightly above $US80/MWh), and by the end of the decade it’s expected to reach cost parity with the majority of plants (around $US70/MWh).

Solar is still the most expensive major electricity source at the moment (around $US160/MWh), but Citi is projecting that by 2020 solar will drop to wind’s current prices (slightly above $US80/MWh).

“Natural gas has already eroded coal’s cost competitiveness in the US, with decreasing costs for wind, solar and ex-US natural gas to follow,” according to Citi……..

Coal power plants are increasingly being pushed into “retirement.”

Most people have been expecting natural gas to be coal’s major substitute. However, Citi’s forecast suggests that growth in natgas demand is going to be way less than previously anticipated.

Renewables should take ever-increasing amounts of market share in an environment like this, according to the report……http://www.businessinsider.com.au/trends-fueling-renewable-energy-2014-9

September 20, 2014 - Posted by Christina Macpherson | general