According to a new study from the Rocky Mountain Institute, natural gas-fired power plants are on the path to being undercut themselves by renewable power and big batteries. Bloomberg reports: By 2035, it will be more expensive to run 90% of gas plants being proposed in the U.S. than it will be to build new wind and solar farms equipped with storage systems, according to the report. It will happen so quickly that gas plants now on the drawing boards will become uneconomical before their owners finish paying for them, the study said. The development would be a dramatic reversal of fortune for gas plants, which 20 years ago supplied less than 20% of electricity in the U.S. Today that share has jumped to 35% as hydraulic fracturing has made natural gas cheap and plentiful, forcing scores of coal plants to close nationwide.
The authors of the study say they analyzed the costs of construction, fuel and anticipated operations for 68 gigawatts of gas plants proposed across the U.S. They compared those costs to building a combination of solar farms, wind plants and battery systems that, together with conservation efforts, could supply the same amount of electricity and keep the grid stable. As gas plants lose their edge in power markets, the economics of pipelines will suffer, too, RMI said in a separate study Monday. Even lines now in the planning stages could soon be out of the money, the report found.
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