[Due to the increasing size of the archives, each topic page now contains only the prior 365 days of content. Access to older stories is now solely through the Monthly Archive pages or the site search function.]
NREL study suggests cost gap for Western renewables could narrow by 2025
August 26, 2013
A new Energy Department study conducted by the National Renewable Energy Laboratory (NREL) indicates that by 2025 wind and solar power electricity generation could become cost-competitive without federal subsidies, if new renewable energy development occurs in the most productive locations. The cost of generation includes any needed transmission and integration costs.
The benchmark for the study is based on the projected future cost of a new combined-cycle natural gas turbine (CCGT) built in the destination market, with natural gas in 2025 at a nominal price of between $7.50/mmBtu and $8.43/mmBtu. According to the analysis, by 2025 geothermal generation could on average be 12% to 35% higher than CCCGT baseline; solar 1-19% higher; and wind at parity up to 13% higher.