The Coal Cost Crossover Report is an important step in identifying how dramatically wind and solar costs have dropped over the last five years. Both wind and solar are subsidized, and both are sufficiently cheaper than fossil generation that they will remain cheaper than fossil fuels when the subsidies are gone. (In the case of wind, the subsidy is gone at the end of this year. In the case of solar, the subsidy phases out starting next year. In 2022 it is set at a new low rate for commercial scale projects only, with no long term tax credit or subsidy available for residential projects).
The report does not identify the fact that not only is a lot of coal generation no longer competitive, but also a lot of U.S. natural gas generation is uneconomic at today’s wind and solar costs, and nuclear plants, while cheaper for the time being, leap into astronomically more expensive costs when they age and need major retrofits.
Sierra Club has done a lot of work on related issues in Ohio. For more information contact [email protected]