When deploying certain generation technologies in particular settings, renewables appear
already to have achieved grid parity. Confirmation of this comes from Texas, of
all places. Austin Energy, the municipal electric utility for the City of Austin, signed a
25-year power purchase agreement for 150MWof solar power at less than $0.05/kWh.
Of PPAs in the US for renewable energy, this is the lowest cost per kilowatt hour ever
achieved. Analysts have assessed the SunEdison bid, and it will turn a small profit;
more importantly, it was selected due to the fact that it was the lowest, competitive
bid. SunEdison’s main competitors were other solar projects; this bid was substantially
below new natural gas, coal, and nuclear bids.