Nearly 75 percent of coal-fired power plants in the United States generate electricity that is more expensive than local wind and solar energy resources, according to a new report from Energy Innovation, a renewables analysis firm. Wind power, in particular, can at times provide electricity at half the cost of coal, the report found.
By 2025, enough wind and solar power will be generated at low enough prices in the U.S. that it could theoretically replace 86 percent of the U.S. coal fleet with lower-cost electricity, The Guardian reported.
“We’ve seen we are at the ‘coal crossover’ point in many parts of the country, but this is actually more widespread than previously thought,” Mike O’Boyle, the co-author of the report for Energy Innovation, told The Guardian. “There is a huge potential for wind and solar to replace coal, while saving people money.”
Using public financial filings and data from the U.S. Energy Information Agency, O’Boyle and his colleagues analyzed the cost of coal-fired power plants compared with wind and solar options within a 35-mile radius. The report found that North Carolina, Florida, Georgia, and Texas have the greatest amount of coal capacity currently at risk of being outcompeted by local wind and solar. By 2025, Indiana, Michigan, Ohio, and Wisconsin will be in a similar situation.
“Coal’s biggest threat is now economics, not regulations,” O’Boyle told CNN Business.
Coal currently makes up just 28 percent of total U.S. power generation, down from 48 percent in 2008. Renewables, meanwhile, now account for 17 percent of electricity generation, dominated by hydro and wind, with solar capacity quickly growing.