The Cost of Electricity

The main barrier lies in the relative cost of electricity and natural gas. This is driven in part by unpriced externalities and taxation systems that effectively subsidise fossil fuels. Delivering heat electrically while matching the same cost would mean paying no more than $10 per megawatt hour, around the production cost of very cheapest renewable electricity anywhere in the world. Matching the cost of natural gas heating via hydrogen would require a price of just 34 US cents per kilo.