Battery storage and renewables to 'drive fossil fuels out of US market', says study
Battery energy storage coupled with renewable power generation is set to "drive fossil fuels out” of the US market, according to a new study.
The Institute for Energy Economics and Financial Analysis (IEEFA) study, ‘US Power Sector Outlook 2021’, forecasts that the "speed and scope of the energy transition to renewables will pick up pace over the next two-to-three years”.
IEEFA analyst and study co-author, Dennis Wamsted, said "coal will be pushed out of the electricity sector completely, with gas set to decline as well”.
"Cleaner and lower-cost wind and solar, coupled with battery storage, will drive fossil fuels out of the market”, Wamsted said.
'Exponential growth'
According to the study, solar and battery storage adoption "is enjoying almost exponential growth, and wind and solar technology improvements have helped turn the two resources into the least-cost option” across the US.
The study said that even a short-term increase in coal generation, caused by higher gas prices, is likely to be just that – a short-term increase. IEEFA’s analysis expects that coal’s share of the US generation sector still could fall to 10% by 2025.
"The increase in renewables is happening largely at the expense of coal. Wind capacity has doubled since 2012, and solar capacity has doubled since 2016. Utility-scale wind and solar accounted for more than 10% of total US electricity generation in 2020 for the first time,” the study said.
External link to IEEFA study
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The Institute for Energy Economics and Financial Analysis (IEEFA) study, ‘US Power Sector Outlook 2021’, forecasts that the "speed and scope of the energy transition to renewables will pick up pace over the next two-to-three years”.
IEEFA analyst and study co-author, Dennis Wamsted, said "coal will be pushed out of the electricity sector completely, with gas set to decline as well”.
"Cleaner and lower-cost wind and solar, coupled with battery storage, will drive fossil fuels out of the market”, Wamsted said.
'Exponential growth'
According to the study, solar and battery storage adoption "is enjoying almost exponential growth, and wind and solar technology improvements have helped turn the two resources into the least-cost option” across the US.
The study said that even a short-term increase in coal generation, caused by higher gas prices, is likely to be just that – a short-term increase. IEEFA’s analysis expects that coal’s share of the US generation sector still could fall to 10% by 2025.
"The increase in renewables is happening largely at the expense of coal. Wind capacity has doubled since 2012, and solar capacity has doubled since 2016. Utility-scale wind and solar accounted for more than 10% of total US electricity generation in 2020 for the first time,” the study said.
External link to IEEFA study
Related articles in our archive: