Analysis: Renewable Energy Continues To Make LCOE Inroads Versus Gas-Fired Generation
Mark Del Franco, editor at North American Windpower, recently highlighted ScottMadden’s latest Energy Industry Update in his article, “Analysis: Renewable Energy Continues To Make LCOE Inroads Versus Gas-Fired Generation.”
“Wind and utility-scale solar in the right locales are narrowing the gap when compared with new natural gas-fired generation, according to a recent report from management consulting firm ScottMadden,” said Mr. Del Franco.
“In its latest Energy Industry Update, Strange Brew: Adapting to Changing Fundamentals, the firm finds that the siting of solar and wind facilities in high-resource locations can be found to significantly improve project economics,” continued Mr. Del Franco. “In fact, the analysis finds well-sited wind energy projects can improve upon their levelized cost of energy (LCOE) by 55% when compared with a low-resource location. And, improved costs will be a key factor for states and utilities to consider in developing strategies for the forthcoming Clean Power Plan.”
“According to ScottMadden, declining installed costs and strong resource availability, as well as aggressive pricing, can help explain recent rock-bottom power purchase agreements being signed for renewable energy projects. However, the report cautions that incentives, cost of gas and the quality of the renewable resource can significantly impact pricing when comparing energy technologies,” said Mr. Del Franco. “Nonetheless, as wind and solar have considerably closed the price gap, low gas prices – languishing below $3/MMBtu on the Henry Hub spot market index – still force wind and solar to second-place status.”
About Mark Del Franco
Mark Del Franco is the editor of North American Windpower, the most widely read and trusted information source. From project development to financing to policy, he has covered all facets of the wind industry since becoming the magazine’s editor in 2009. Prior to joining NAW, he was managing editor at Multichannel Merchant, a Penton Media publication. To learn more, visitwww.nawindpower.com.
About ScottMadden’s Energy and Clean Tech & Sustainability Practices
Since 1983, we have been consultants to the energy industry. We help our clients develop strategies, improve operations and reorganize companies, and implement initiatives. Leveraging our energy expertise, ScottMadden’s Clean Tech & Sustainability practice helps our clients effectively navigate the quickly changing landscape with sustainable energy strategies and smart portfolio choices.
About ScottMadden, Inc.
ScottMadden is the management consulting firm that does what it takes to get it done right. Our practice areas include Energy, Clean Tech & Sustainability, Corporate & Shared Services, and Grid Transformation. We deliver a broad array of consulting services ranging from strategic planning through implementation across many industries, business units, and functions. To learn more, visit www.scottmadden.com | Twitter | Facebook | LinkedIn