Renewable power such as solar, wind, and hydro could soon surpass coal as the “king” of the electric grid in the United States.
According to a report from the CNN website, wind and solar power are growing rapidly that the country would likely get more power from renewable energy in 2021. This insight was from the projections from the Institute for Energy Economic and Financial Analysis.
A Partner at Greentech Capital Advisors, PJ Deschenes, said, “The next piece of the energy transition is very close at hand. Coal is coming offline as fast or faster than we anticipated.”
Greentech Capital Advisors is a boutique investment bank that concentrates on clean energy.
For many years, coal gas been the cornerstone of the power industry. But due to various environmental concerns, old plants, and competition, it saw a decline in usage in the country.
Between 2000 and 2010, coal provided approximately half of America’s power generation. However, due to the abundance of cheap natural gas, coal usage fell sharply in the last decade.
Replacing Old Coal Plants with Renewables
President Donald Trump’s promise to save coal did not help in reviving the dying industry. One proof is the bankruptcy of America’s largest private coal mining company, Murray Energy, last month.
The country has seen US power companies replacing their aging coal plants with wind and solar farms. Utility companies such as PSEG and Xcel Energy now commits to carbon-free electricity after relying on coal for a long time.
“US Power plants are expected to consume less coal next year than at any point since 1978, according to the EIA. That will cause coal’s market share to drop below 22 percent, compared to 28 percent in 2018. That shrinking market share makes existing coal plants even less profitable,” the report stated.
The Editor and Analyst at IEEFA, Dennis Wamsted, predicts that 2021 will be the “crossover year” where renewables replace coal.
He said, “Coal and renewables are rapidly heading in opposite directions. If the crossover doesn’t occur in 2021, it will without a doubt do so by 2022.”
Texas has seen this change when wind power outperformed coal for the first time during the initial half of 2019. Wind made up 22 percent of the state’s power this year compared to 21 percent for coal.
Renewable energy surely shows steady and fast growth in the United States. Phillip Riley is bridging the gap between companies in the renewables sector and job seekers who are searching for great opportunities in this industry. To know more about the market growth in this area and how you or your company can incorporate a strategic and diversified hiring plan, please contact Phillip Riley’s Director of Americas, Meredith Fuselier at [email protected].