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Power Plants Get More Expensive But Renewables Still Cheapest

  • Cost of solar farms surged 11.5% while coal was almost flat
  • Raw materials, shipping, fuel have all become more expensive

Rising costs for materials and shipping made power plants more expensive in the second half of 2021, and while renewables saw the largest gains, wind and solar remain the cheapest sources of electricity in most of the world. 

Power from new fixed-axis solar farms climbed 11.5% from the first half to $43 a megawatt-hour, according to a report Tuesday from BloombergNEF. Onshore wind gained 4.3%, while natural gas climbed 4.4% and coal inched upward by 0.5% to $64.