Natural Gas facing challenges from renewable source of energy in US
Due to the US fracking boom and concerns looming regarding coal due to environmental concerns, the power companies are moving towards natural gas. The natural gas is the latest emerging fuel and becomes the nation’s top power source.
Due to the US fracking boom and concerns looming regarding coal due to environmental concerns, the power companies are moving towards natural gas. The natural gas is the latest emerging fuel and becomes the nation's top power source.
As compared to other sources, the natural gas processes are lower and the availability is high, this might become a pathway to shift from the pollutes sources of energy to the alternative energy sources.
But as the economy of scales comes into the picture and looking at the rapid decline in the cost of energy from renewable energy, natural gas is facing competition from renewable energy sources.
Even few companies have scrapped the plans for new natural gas plants as the renewable sources of energy like wind and solar tariffs are coming within reach. The regulators are also coming up with stringent environmental laws that are making the companies shut their existing gas plant because their economies are now becoming unattractive.
An energy consultant in Portland, Oregon has echoed the thought that the world is changing and we are arriving at that time very quickly. He also reiterated that critic like him has been taken by surprise as a wind farm today can come to service quickly and start contributing.
The Arizona Corporation Commission that regulates the state's investor-owned utilities denied three power companies their plans regarding the natural gas plant. The commissioners pointed out that the companies should make plans to reduce emission through energy storage or planning for plants with zero emission.
The Arizona Public Service official believes that natural gas plants should be a part of the over-all mix because the state required continuous air conditioning.
The financial advisory and management firm, Lazard, pointed out in their latest report that cost of utility-scale solar farms are nor at par with natural gas, while wind farms are less expensive. The firm calculated the unsubsidized cost of wind at 3 cents a kWh which is less than the natural gas and solar energy that comes to slightly more than 4 cents.
Even as the wind and solar cost decreases, natural gas doesn't seem to be coming down from being the major source of energy in the US.