Wind power is now the cheapest electricity to produce in
both Germany and the U.K., according to a new analysis by Bloomberg.
Solar power is a bit further behind, but the costs are
dropping rapidly, especially those associated with financing a new
For the first time, widespread adoption of renewables is
effectively lowering the capacity factor for fossil fuels. Once a
solar or wind project is built, the marginal cost of the electricity
it produces is pretty much zero, while coal and gas plants require more fuel
for every watt.
It’s yet another sign of the rising disruptive
force of renewable energy in power markets. It's impossible to brush aside
renewables in the U.S. in the same way it might have been just a few years ago.