Over the past six years, the cost of solar energy has
dropped dramatically, to the point where it is now even cheaper than wind power
in emerging markets like China and India. This may be largely due to rising
investments in solar over the last few years. Now, there is electricity being
produced in Chile for $29.10 per megawatt hour–half the price of power produced
by coal.
"Renewables are robustly entering the era of
undercutting" energy made by fossil fuels, Bloomberg New Energy Finance
chairman Michael Liebreich wrote this week.
This is great news for developing nations, which do not
generally have the kind of infrastructure that developed countries have
dedicated to fossil fuels already in place. As they build their energy
infrastructure, it will make sense to go with cheaper, renewable options, more
so than it does for a country like the United States to abandon our formidable
fossil-fuel based infrastructure.
Source: Bloomberg
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