This Bloomberg article discusses how natural gas is getting edged out of power markets across the U.S. by two energy sources – solar and batteries.
In just the latest example, First Solar Inc. won a power contract to supply Arizona’s biggest utility when electricity demand on its system typically peaks, between 3 p.m. and 8 p.m. The panel maker beat out bids from even power plants burning cheap gas by proposing to build a 65-megawatt solar farm that will, in turn, feed a 50-megawatt battery system.
It’s a powerful combination for meeting peak demand because of when the sun shines. Here’s how it’ll work: The panels will generate solar power when the sun’s out to charge the batteries. The utility will draw on those batteries as the sun starts to set and demand starts to rise.