Gas Is OUT... So What's In?

As the cost of renewable energy falls, clean energy portfolios are taking the place of natural gas power plants. [Shield] AN OXFORD CLUB PUBLICATION [Profit Trends]( [View in browser]( SPONSORED [Is This Strange Device the Linchpin of the 5G Revolution?]( [Strange Device]( As This Device Helps Fuel 5G's 120-Fold Rise Over the Next Four Years, the $8 Tech Stock Behind It Could SKYROCKET. [(The Full Story Here...)]( [What Is Rapidly Replacing Natural Gas Power Plants?]( [David Fessler | Engineering Strategist | The Oxford Club]( [Dave Fessler]( Longtime readers will be familiar with what I call my Three Laws of Technology. [My second law of technology states]( "When it comes to technology, changes occur much faster than anyone expects." And that's exactly what has happened in the power sector. The power industry used to believe that gas-fired power plants were the key to a low-carbon power grid. That would require a $50 billion investment in new plants. But as it turns out, the transition to clean energy won't be quite so painful. Costs have come down on renewable energy faster than expected. And utilities are adopting it faster than expected too. What's more, a combination of renewables and energy storage is eliminating the need for new - and pricey - natural gas power plants, as I'll get into today. Gas Paints an Increasingly Ugly Picture Several trends are creating risk factors when it comes to further investments by utilities in new gas-powered plants. The first is natural gas prices. Higher natural gas prices mean 88% of new plants will be more expensive than clean energy portfolios (which I'll explain later) at the time they are built. Then there's fuel security. If gas power plants have to foot the bill to secure reliable fuel supplies to guard against outages - like [the February 2021 mess in Texas]( - then 95% of new gas power plants won't be cost-effective. Jobs come next. Policymakers in Washington continue to prioritize job creation. That threatens all new gas power plants because clean energy portfolios lead to more new jobs than gas power plants. Health risks are another consideration. Gas power plants, while [cleaner than coal]( plants, still have impacts on human health. That makes the prospect of building new ones undesirable. And finally, there are the effects on communities. As many as 88% of proposed new gas power plants would be built near marginalized communities. SPONSORED [Why This $2 "Next Gen Crypto" Could Be Bigger Than Bitcoin]( [EKCoin]( The Wall Street Journal Calls It the "Latest Cryptocurrency to Surge." [Here's Why It Could Be Bigger Than Bitcoin.]( Clean Energy Gains Momentum The cost of renewable [energy]( has plummeted. As a result, what are being called "clean energy portfolios" are rising in popularity as sources of renewable and sustainable energy. Clean energy portfolios are a combination of [wind and/or solar power]( energy efficiency, demand response and battery energy storage. Together, these provide the same service and reliability as a natural gas-fired power plant. As you can see below, costs for these portfolios have dropped dramatically... [Projected Clean Energy Portfolio vs. Gas Plant Costs]( Due to this drop in cost, more than 50% of new gas power plant projects have been axed. And more are likely to disappear this year. Stranded Cost Risk In addition to lower prices for renewable energy and [battery storage]( we also have more efficient buildings and appliances, which lower our demand for electricity. That all points to clean energy portfolios as the wave of the future for new energy capacity. Natural gas-fired plants just aren't economical anymore. Utilities investing in them today risk incurring huge, stranded costs that would ultimately be paid by utility customers. Replacing new gas power plants with clean energy portfolios has plenty of benefits. And the idea that natural gas is a [bridge fuel to a renewable energy]( future has become a myth. The best way for investors to capitalize on the growth of clean energy portfolios is through investing in top wind, solar and battery storage companies. And if you don't want to take the time to cherry-pick individual companies for your portfolio, I'd recommend investing in any of a number of [renewable energy funds](. Clean energy portfolios are here to stay. Smart growth investors will want to get in now and play the long game. Good investing, Dave P.S. Last week, I wrote about how the chip shortage isn't ending anytime soon. In fact, it's getting worse! [To read that article, click here.]( [Leave a Comment]( RECOMMENDED LINKS [1 Trade Idea Delivered Every Week, With an 83% Win Rate. 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