April 1, 2014

Investment bank Citi says solar and wind are competing on costs with fossil fuels in the U.S.

Investment banking giant Citigroup has hailed the start of the "age of renewables" in the United States, the world's biggest electricity market, saying that solar and wind energy are becoming competitive with natural gas peaking and baseload plants.

In a major new analysis released last week, Citi says the big decision-makers within the U.S. power industry are focused on securing low-cost power, fuel diversity and stable cash flows, and this is drawing them to the increasingly attractive economics of solar and wind.

Citi's report notes that gas prices are rising and becoming more volatile. This has made wind, solar and other renewable energy sources more attractive because they are not sensitive to fuel price volatility.