Wind And Solar Feeling Heat From Low Natural Gas Prices
1st February 2010
According to a Morgan Stanley banker, clean natural gas and not the dirt coal is being considered as the major hurdle to broader the use of solar and wind power in the near term. Paul Leggett, who has been overseeing Morgan Stanley's clean energy banking practice, provided a snapshot of the green-tech investment area to professionals in advance of the GoingGreen East conference in March on Friday.
Overall, he has been foreseeing significant activity in the clean-energy areas this year, driven mostly by concerns over the economy and energy security, despite financial and policy challenges. One is the low price of natural gas used to make electricity at power plants. Even though the cost of solar and wind power installations continue to go down, having natural gas near 10-year lows has made it tough to compete strictly on price.
Leggett has said that it was one of the biggest threats to what they needed to do in the section of clean energy. Politically, there are lots of allies of natural gas as well. In Pennsylvania, large reserves have been located, which has made it a domestic fuel and more and more supplies keeps on coming online, then it is being feared that the prices could go down further.
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