“Building #solar and #wind farms has started to become a cheaper proposition than running aging #coal and #nuclear generators” — Bloomberg

Graph showing the decline in costs for large lithium ion batteries in US dollars per kilowatt-hour (kWh), 2006-2016. Graphic via the Climate Reality Project.

From Bloomberg (Naureen S Malik):

Building solar and wind farms has started to become a cheaper proposition than running aging coal and nuclear generators in parts of the U.S., according to financial adviser Lazard Ltd.

Take wind: Building and operating a utility-scale farm costs $30 to $60 a megawatt-hour over its lifetime, and that can drop to as low as $14 when factoring in subsidies, according an annual analysis that Lazard’s been performing for a decade. Meanwhile, just keeping an existing coal plant running can cost $26 to $39 and a nuclear one $25 to $32.

Two years ago, “what was interesting to us was the lifetime cost of renewables on an energy basis reached parity with conventional resources in a bunch of geographies in the U.S.,” said Jonathan Mir, head of the North American power group at Lazard. “Now, what we are seeing is that renewable technologies on a fully loaded basis are beating” existing coal and nuclear plants in some regions.

The report by Lazard, whose estimates are widely used in the power sector as benchmarks, comes as President Donald Trump’s administration is vowing to stop the “war on coal” and put America’s miners back to work. Hundreds of power plants burning the fuel have shut in recent years amid escalating competition from natural gas, wind and solar. Energy Secretary Rick Perry has proposed rewarding coal and nuclear plants with extra payments for their dependability, touching off a national debate over the country’s future power mix.

“We still need, in a modern grid, fuel diversification and a diverse generation stack,” Mir said. “So someone has to think hard about how to organize this transition.”

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