As the price of natural gas falls off a cliff, it becomes a worthy competitor to coal as the primary source for electricity in the U.S.
Natural gas only provides 21% of the nations electricity, versus coal’s almost 50%. However the price of natural gas has fallen from $13 per million British thermal units to $4 per million btu in less than a year.
That’s allowing Nstar, a Boston based utility to cut its rates by 28%. Other utilities could follow Nstar’s lead. Building gas fired power plants costs less than building coal power plants. Also, the idea of a hybrid gas and solar power plant works well as a cleantech solution.
The price of gas isn’t expected to bounce back anytime soon. There’s been big gas discoveries in Texas, Louisiana, Pennsylvania, the Wall Street Journal reports. Energy consulting firm Wood Mackenzie doesn’t see gas prices rising until 2015, the Journal reports.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.