According to CNBC, new data coming from TranzitionZero shows that it is cheaper to switch from coal to renewable energy than it is to do so from coal to gas. This is due to the fact that renewables got cheaper and gas prices have risen significantly.
Jacqueline Tao, an analyst at TransitionZero, said that "the carbon price needed to incentivize the switch from coal generation to renewable energy for storage has dipped to a negative price."
"So essentially that means that you can actually switch to renewables at a cost saving", she added.
The same report suggests that the global average cost of switching from coal to renewable energy sources went down by 99% since 2010, compared to switching from coal to gas.
Data from TransitionZero shows that the carbon price required to stimulate the coal-to-green-energy switch reached -62 USD per ton of CO2 emissions on average in 2022, compared to 235 USD per ton of CO2 emission, which would be the price of switching from coal to gas.
Natural gas was believed for a while to be a transition fuel from coal to renewable sources, such as solar or wind power, since burning gas has a lower carbon footprint compared to burning coal.
Still, switching from coal to green energy isn't as accessible everywhere on earth, Asia especially being a continent where prices aren't as low compared to places as the EU, says Tao.
Indonesia, the Philippines and Vietnam are facing fairly high prices when it comes to switching to renewable sources, especially since the fossil-fuel industry in the countries was subsidized.
Despite all this, Tao believes that switching to clean energy sources wouldn't just be cost saving on the long run, but it would also help to "enhance energy security", while helping us fight climate change.
"We think that investing in renewable energy now would provide a hedge", Tao concluded.
Any thoughts?