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Big turning point for solar and wind

11 Nov 2015

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 project. 

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.