{
  "id": 9005787,
  "title": "The Energy Transition Has a Speed Advantage That Cost Models Miss",
  "url": "https://urgent.news/2026/09/21/the-energy-transition-has-a-speed-advantage-that-cost-models-miss",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-21T21:00:00.000Z",
  "source": {
    "name": "OilPrice",
    "slug": "oilprice",
    "url": "https://oilprice.com/Alternative-Energy/Solar-Energy/The-Energy-Transition-Has-a-Speed-Advantage-That-Cost-Models-Miss.html"
  },
  "original_language": "en",
  "account": "Power technologies are no longer evaluated solely by their cost efficiency. Global electricity demand is surging due to data centers, electrification, new factories and cooling. The International Energy Agency predicts data-center consumption to more than double to 945 TWh by 2030 - slightly more than Japan's current consumption. Nevertheless, conventional power plants available in 2035 will not be able to meet the rapidly arriving data center demand. Time-to-power is becoming almost as crucial as cost when it comes to supplying power. This disparity gives renewables an edge that traditional cost comparisons fail to acknowledge. Solar and wind not only have become less expensive, they are also modular, repeatable and remarkably quick to build. In a system suddenly facing power shortages and time constraints, their speed of installation may prove more significant than any cost projections. Construction timelines for utility-scale solar, onshore wind and offshore wind are around 15, 18 and 24 months respectively. Rooftop solar can be installed rapidly once approvals and equipment are in place. Conversely, a new combined-cycle gas plant takes approximately two years, coal five to five-and-a-half years, and nuclear around seven years - including the full project development period. These are not rigid limitations. Permitting delays can extend the timeline for solar farms, while standardized gas plants may occasionally advance more swiftly. China has demonstrated the ability to construct coal and nuclear plants faster than Western economies typically do. However, renewables possess a fundamental advantage rooted in their modular design. Unlike centralized power plants, renewable energy consists of thousands of individual manufactured units that can be added incrementally. Once operational, the first units can begin generating power even before the entire project is completed. This construction approach alters investment risk as well as construction speed. Starting to generate electricity earlier than a slower alternative saves capital from being consumed. Shorter construction periods also minimize exposure to interest rate fluctuations, inflation, regulatory changes, and cost overruns. Moreover, modular projects can be resized or halted midway if demand forecasts alter. In contrast, a half-finished nuclear or coal plant offers no comparable flexibility. For gas turbines, the advantage lies not just in their engineering characteristics but also in their financial value. As the electricity system faces both power shortages and time constraints, gas turbines have emerged as a viable option. However, the bottleneck extends beyond mere construction. Developers must secure scarce turbines, arrange for engineering capacity, secure financing, obtain permits, establish a gas connection, and ensure grid access. The lead times for combined-cycle gas turbines have more than doubled to above $2,400 per kilowatt, with lead times exceeding five years in certain markets. While gas will continue to play a crucial role due to its ability to generate power when wind and solar cannot, the notion of simply ordering a large gas plant upon demand emergence has become outdated. The comparison should not be limited to solar alone versus a combined-cycle gas plant. Instead, it should focus on the fastest deployable portfolio versus waiting for a supposedly perfect asset. This market reality is already reflected in deployment patterns, with renewables expected to supply nearly half of the additional electricity consumed by data centers through 2035, citing their short lead times, competitiveness, and compatibility with storage and demand response solutions.",
  "summary": "Power technologies are usually compared by asking how much their electricity costs. That is no longer enough. Electricity demand is accelerating, driven by data centers, electrification, new factories and cooling. The International Energy Agency expects global data-center consumption alone to more than double to around 945 TWh by 2030—slightly more than Japan consumes today. A power plant that is…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}