About 74% of US coal-fired generation could be replaced today with local wind or solar power at cheaper cost to the consumer, according to analysis by research organisation Energy Innovation.
The report – ‘The coal cost crossover: economic viability of existing coal compared to new local wind and solar resources’ – said that by 2025 the figure rises to 86% of the coal fleet in the US.
It concluded that 211GW of existing coal power could be replaced by wind or solar within a 56km radius at a cost lower than the existing coal plants ongoing marginal costs. By 2025, the figure was 246GW.
The research said about 94GW of coal generation could be replaced at over 25% lower cost by local wind and solar today, rising to 140GW by 2025.
Energy Innovation said: “Our report shows that coal is increasingly uneconomic against new local wind and solar resources.”
It added that local decision-makers should consider plans for a smooth shut-down of old coal plants and assess options for their reliable replacement, as well as financial options for communities dependent on those plants.
“Ultimately, this report begins a longer conversation about the most cost-effective replacement for coal, which may include combinations of local or remote wind, solar, transmission, storage, and demand response,” Energy Innovation said.