Sad, but true?

Where climate justice sometimes comes up short, economics closes the deal.

Quote: “Morgan Stanley & Co. LLC forecast that about 70,000 MW to as much as 190,000 MW of coal-fired generation is “economically at risk” from the deployment of a “second wave of renewables” in the U.S. under three of the more likely scenarios in a recent analysis. The research firm said these projections exclude about 24,000 MW of coal generation already set to shut down.

Driven by the surprisingly low cost of renewables, we believe that carbon-heavy utilities that have not historically led the pack in clean energy deployment will accelerate their earnings growth by pursuing a ‘virtuous cycle’: shutting down expensive coal plants and investing in cheap renewables,” Morgan Stanley analysts wrote in the Dec. 10 research report.”

I grant that climate work has done tremendous work to help drive alternative energy sources, but sometimes simple economics takes hold and it’s a freight train running wild down the mountain … better late than never!

Disclaimer: of the companies mentioned in MS report, I am long either common or preferred in: D, DUK and PPL. No short positions.

Leave a Comment

Your email address will not be published. Required fields are marked *