Are Renewables Becoming Competitive?

Historically, widespread uptake of renewable energy has been limited by relatively high costs as compared to traditional energy sources. A 2011 IEA report argued that “renewable energy … is becoming cost-competitive in an increasingly broad range of circumstances, in some cases providing investment opportunities without the need for specific economic support.” Several recent trends, and recently announced business ventures, seem to support the IEA’s finding that some renewable energy sources are approaching cost-competitiveness. Prices for distributed solar have plummeted recently – due largely to economies of scale, government support and policy-driven demand – leading in 2011 to a record 1,855… [more]