It is the competitiveness
Why renewable energy is cheaper
The cost ofelectricity is given through the cost of the power plant generating the electricity. The cost of pwoer plants is dictated by three main factors:
- Capital cost: the cost of buidlding the power plant (wind mill, installation of solar panels)
- Maintenance cost: monitoring and maintaininig the quipment, and replacing parts if required
- Operational cost: personal cost to monitor the opertions, and fuel costs.
Gas/coal/oil powered power plants (and nuclear plants) need to buy fuel to operate. The fuel of renewable electricity is the wind, the sun, or the waves of the ocean. It is free.
Cost comparision of renewable vs. fossil electricity generation:
Data: Lazard
Solar PV and wind have been the cheapest form of electricity for a couple of years now. According to the international Energy Agency, renewable electricity is the cheapest form of energy in human history.
