It's now cheaper to switch from coal to renewables instead of coal to gas, report shows

Key Points

• According to the findings of climate analytics firm TransitionZero, it is now cheaper to switch from coal to clean energy, compared to switching from coal to gas.
• That's thanks to the falling cost of renewables and battery storage, coupled with the rising volatility of gas prices.
• Investing in renewables provides a hedge against climate change risks, said Jacqueline Tao, an analyst at TransitionZero.

Power workers inspect photovoltaic power generation facilities at a 35-MEGAwatt fish-light complementary photovoltaic power station in Binhai New Area, Haian City, East China's Jiangsu Province, on March 15, 2022.

Costfoto | Future Publishing | Getty Images

Record-high coal and gas prices have been pushing prices higher for consumers and businesses alike, but there could be a silver lining.

According to the findings of climate analytics firm TransitionZero, it is now cheaper to switch from coal to clean energy, compared to switching from coal to gas thanks to the falling cost of renewables and battery storage, coupled with the rising volatility of gas prices.

The carbon price needed to incentivize the switch from coal generation to renewable energy for storage has dipped to a negative price, said Jacqueline Tao, an analyst at TransitionZero.