While the production of fossil fuels drops in the U.S., solar and wind power is skyrocketing as technology and cheaper financing drive down the costs.
“In the U.S., we’ve known that wind energy can be cheaper than [natural] gas in some states, but solar is now inching toward that same milestone,” said Jacqueline Lilinshtein, U.S. analyst for Bloomberg New Energy to Dallas News.
Finance, a firm that advises industry clients on energy issues.
Texas leads the U.S. in wind power, with about 10 percent of its power from wind. California, Nevada and North Carolina are the nation’s top solar states and dominate the market.
The federal government expects a surge in renewable energy in the coming year, especially as solar expands from its traditional base of home rooftop panels to major utility-scale production.
“U.S. solar and wind power generating capacity is expected to see double-digit growth in 2016,” said Adam Sieminski, the head of the U.S. Energy Information Administration to Dallas News.
This comes as America’s fracking boom is starting to falter. The crash in oil prices is shrinking the profits for drillers. Estimated U.S. crude oil production dropped by 120,000 barrels a day last month and is forecast to keep going down for most of the coming year at least.
Coal continues its downward spiral. Even coal areas that weathered past hard times, such as Indiana and western Kentucky, are having a tough year, and major coal companies are going bankrupt.
In the meantime, the cost of wind and solar continued to go down this year, signaling “a significant shift in the generating cost comparison between renewable energy and fossil fuels.”
Source: Dallas News
