Large wind farms and solar plants are now cost-competitive with gas-fired power in many parts of the US even without subsidy, according to investment bank Lazard.

Costs have fallen and efficiency has risen for solar panels and wind turbines, Lazard found, to the point that in areas of strong wind or sunshine they can provide electricity more cheaply than fossil-fuel plants.

George Bilicic, global head of power at Lazard, said: “We used to say some day solar and wind power would be competitive with conventional generation. Well, now it is some day.”

However, not all renewable energy sources are able to compete with fossil fuels, says the bank, with technologies such as rooftop solar panels and offshore wind still having significantly higher costs.– (Copyright The Financial Times Ltd 2014)