Renewable energy generation is economically viable in many parts of the USA, mainly due to rapidly declining technology costs, according to analysis by the US Energy Department’s National Renewable Energy Laboratory (NREL).
Analysts at the NREL have developed a method for measuring the economic potential of renewable energy across the country and published the findings in a report ‘Estimating Renewable Energy Economic Potential in the United States: Methodology and Initial Results’.
It describes a geospatial analysis method used to estimate the economic potential of several renewable resources, inclusing photovoltaics (PV), wind, geothermal, biomass and hydropower resources.
The report found that when the social cost of carbon is taken into account, renewable generation is economically viable in many parts of the country.
At 2014 costs, the technologies combine for 820 TWh of estimated economic potential beyond the generation from renewable energy facilities already in operation.
This additional potential is equivalent to nearly 20% of total US annual electricity generation from all sources in 2014.
The study also found that projected future renewable energy cost reductions yield further increases.
At 2020 projected costs, economic potential equals almost half of US annual generation; in 2030, further cost reductions result in over 75% of generation.
NREL energy analyst Philipp Beiter said: “This report presents one method for estimating economic potential.
“The initial results are intended to explore this method as a screening metric for understanding the economic viability of renewable generation at a detailed geospatial resolution.
“Declining renewable technology costs are a significant driver for these results.”
Image: Enel’s Smoky Hills 2 wind farm (Enel)
US shows RE potential
NREL study says renewables economically viable in most parts of the country
By EBS